Largo Inc T.LGO

Ilmenite EPS estimation

[kha341]

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.
If management can deliver ( a big "if") then an Ilmenite revenue of US$40M / year could easily increase Largo's annual EPS (before tax) by US$0.16 considering the fact, as a by-product of V2O5, the Ilmenite production costs should be very low.

 

Scenario	Profit Margin	Annual Profit	EPS before tax
1	75%	US$30M	US$0.47
2	50%	US$20M	US$0.31
3	25%	US$10M	US$0.16
4	10%	US$4.0M	US$0.06

Let's pray that management wake up and deliver 2024 as our come back year.

[mjh9413]

Is't limenite trading at USD2.90 per kg? Isn't that a factor of x10 on your number? 

[mjh9413]

Ok kha431 I said x10 so as to get reaction but it has to be more than x4. Like to know  either the price per tonne you used or how you translated qtly tonnes to kg and what price per kg you used to get $10MM/qtr. Thanks.