Largo Inc T.LGO

One metric ruins it all

[ceetong]

V2O5 revenues per pound of V2O5 sold: $8.10
FeV revenues per kg of FeV sold: $30.11

Now compare that to the average prices during the Q:
"During Q1 2022, the average benchmark price per lb of V2O5 in Europe was $10.72
"During Q1 2022, the average benchmark price per kg of FeV in Europe was $46.17

They sold FeV at 65% of market price on average! WTF are they doing? What's more, with regard to V2O5 LGO sells a mix of standard and high-purity products which should fetch a premium over the standard V2O5 price. In fact they recorded an average sales price close to 75% of the market price for standard quality V2O5.

[ceetong]

As I had pointed out 3 weeks ago, LGO's pricing performance is very poor indeed. The average selling price for their product mix ($8,10), including highly priced high purity Vanadium, was well below the quarterly average of standard V2O5 ($10,72). Addressing a question from Jim Young, Paulo Misk said: "[the] majority of our sales, are down on long-term contracts, right? And long-term

[ceetong]

In the mda, page 4, they break out selling prices for V2O5 and FeV separately, for material they produced in Maracas as well as purchased material. It is remarkable to see that the 3rd party material fetches a better price then the material produced by Largo. In case of V2O5 the difference is 8,3% and with FeV it's 21,2%! This leads me to suspect something could be wrong with Largo's

[ceetong]

Argh, I should have proof-read my post...