Largo Inc T.LGO

Auditor change - see SEDAR

[Drhoho]

Price Waterhouse Cooper resigned as  auditor, at LGO request, 15 March, replaced  by KPMG. No modification of opinions  for calendar years 2020 and 2021, no reportable events noted for those two calendar years or any subsequent time, ie, 2022.

[kha341]

PwC was Largo’s external auditor since March 2015 (replacing McGovern, Hurley, Cunningham LLC Chartered Accountants). It should be noted that according to the US Sarbanes-Oxley Act  a public company is required to change its external auditor periodically (in general every 5 years) to ensure the auditor’s independence. 

[Drhoho]

Kha, ty for the insight into the auditor change that LGO requested and received. Is there a seperate ~5 year Canadian audit ruling/regulation that applies as well? Before this audit issue was just raised, I was questioning whether the current US executive branch push, (if ever passed) for laws restrictioning or eliminating corporate buybacks would effect LGO's Canadian company status? For some

[NewAgeMetal]

~ US$ 180-200 million in free cash by the end of 2022 We really have to take this number with a grain of salt.  If I remember correctly, the bottom end of this rnage was based on 12.5K of production and an annual average price of $12.  They maintained the 12.5 productiion after Feb but it became the top end of the production range rather than a mid-point - if no more issues and March

[Drhoho]

NewAge, it was not me wearing rose-colored glasses, but reflecting that surprisingly high number Ernest Cleave gave in the CC in response to end of 2022 free cash questioning by Lee Cooperman. Cleave sounded confident in his projection, indicating that the BOD was already looking into options. He also stated that the free cash available would be after internal funding of all capex, with no new

[NewAgeMetal]

I hope to write a note later this year claiming my skepticism was wholly unwarranted and EC was bang on with his projection.    I would be remiss if I didn’t also acknowledge (for all the dirt I throw his way) that I found the exchange between Cooperman and EC to be the best 2-4 mins of LGO conference call conversation in years.

[kha341]

NewAgeMetal, Further to your point: When you mention $12, you are talking about the average benchmark price of V2O5 Flake (which is about $10.50/lb in Q1). But when EC assumed $12 for his cash estimation he was talking about an assumed sale price. These are 2 different things. Until now our sale prices have always been lower than the average benchmark prices. 

[ceetong]

Which is quite something to achieve considering how they continuously brag about their high purity product fetching premium prices. True to their company motto "Over-promise and under-deliver"!

[ceetong]

While we're at it, their comment they wanted to re-stock their warehouse doesn't bode well for Q1 either. It means they sell less into the spot market which in turn will increase the proportion of sales into long term contracts. This implies an even lower avg. selling price.

[hurko22]

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