Mining operating costs = 97% of revenue? Let me say this right from the get-go: No producing mine can survive such an unbearable rate for long. Unless there is a rebound in the prices of V2O5, I don’t even think that even a reduction to “85%” could be of much help when Largo has to carry the LCE burden in addition to its mining operations.
As horrible as it was, the mining operating costs at 97% of revenue were not even the whole story about management failure to control costs in Q3-23, as demonstrated by the following table:
US$
| Costs | Annual Guidance | Quarterly Guidance High | Actuals Q3-23 | Underrun (Overrun) | Comments |
| Corporate SG&A | $9M - 10M | $2.5M | $3.8M | ($1.3M) Overrun by 52% | This actual costs = 8.6% of revenue |
| LCE Costs | $13.5M - 14.5M | $3.6M | $4.8M | ($1.2M) Overrun by 33% | This actual costs = 11% of revenue |
From MD&A
Corporate SG&A: Consists of the total of professional, consulting and management fees and other general and administrative expenses for the Corporate and Sales & Trading segments.
LCE Costs: Consists of the total of professional, consulting and management fees, other general and administrative expenses and technology start-up costs for the LCE segment.
In addition to the SG&A and LCE Costs mentioned above, the following table shows 3 other costs among other:
| Items | Q3-23 Actuals |
| Titanium project costs | $0.16M |
| Finance costs | $3.5M |
| Exploration and evaluation costs | $2.3M |
DYODD