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Bullboard - Stock Discussion Forum Largo Inc T.LGO

Alternate Symbol(s):  LGO

Largo Inc. is a Canada-based producer and supplier of vanadium products. The Company’s segments include sales & trading, mine properties, corporate, exploration and evaluation properties (E&E properties), Largo Clean Energy and Largo Physical Vanadium. Its VPURE and VPURE+ products, which are sourced from one of the vanadium deposits at the Company's Maracas Menchen Mine in Brazil. The Company... see more

TSX:LGO - Post Discussion

Largo Inc > The Ilmenite stream: Can management deliver as promised?
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Post by kha341 on Nov 08, 2023 9:18pm

The Ilmenite stream: Can management deliver as promised?

The ramp-up period is expected to be about 4 - 5 months before reaching the production capacity of 145,000T of ilmenite.


August Production = 350T

September Production = 700T


So total Q3-23 Production = 1050T, in terms of revenue we are talking about US$294,000 assuming the revenue per tonne = US$280 (as per Vollant expectation).


A total capacity of 145,000T / year = ~12,000T / mth = 36,000T / Q. 

Let’s assume that Largo will reach the full monthly production capacity of 12,000T right from January 2024. We are talking about 36,000T for each Q or a quarterly revenue of ~US$10M or a yearly revenue of ~US$40M in 2024. 


Judging from the ramp-up production of 350T in Aug and 700T in Sept we are still far away from the monthly capacity of 12,000T. 
The question is can Management deliver as promised.
The jury is still out, imho.

DYODD

Comment by kha341 on Nov 08, 2023 9:25pm
Btw, we are consistantly paying US$150-US$250K per Q for Iron Ore Costs since the fiasco. Like WTF!
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