Post by
Drhoho on Jan 25, 2023 11:34am
2022 production, 2023 guidance
I, for one, am not here to post anything other than my disappointment about the numbers in the above yesterday LGO announcement. The biggest negatives, in my opinion, were (1) following the December, 2021 rain-flooding the mitigation measures put into place @ Maracas, preventing side water from running down into the Campbell pit, failed to adequately deal with the super heavy December, 2022 rainfall directly falling into the pit, closing V2O5 production for 16 days in December, 2022 and January, 2023- negative effects on 4th quarter 2022 and 1st quarter and full year 2023- and (2) announcing the TiO2 project on hold with the possibility, if it is approved to proceed at some point, that additional debt financing may be added to LGO's balance sheet. LGO has touted itself for some time having an ongoing mining operation that is debt free or carrying minimal debt. To continue as a successful mining operation, annual production @ Maracas has to be optimum in the 25 million pound or greater level, and, ideally, V2O5 market price be in the $US10.00/pound level or higher- the latter the biggest unknown risk of all for what has been and still is a single commodity play for the company and its shareholders. All the other factors at play, LCE/ Enel VRFB, Ansaldo non-binding MOU, LPV-Largo physical vanadium, ilmenite sales/income are yet to receive any company information about any possible positive financial impact.