Largo Inc T.LGO

Q2-24 Revenue Estimation

[kha341]

 

Q1-24 average V2O5 benchmark price = $6.44/lb

Q1-24 Price of V2O5 equivalent sales = $6.91/lb or 7% higher than the average V2O5 benchmark price

Q2-24 average V2O5 benchmark price = $5.93/lb

For the sake of argument let’s assume that the Q2-24 price of V2O5 equivalent sales = 10% higher than the average V2O5 benchmark price = $5.93 x 1.10 = $6.52/lb

Q2-24 V2O5 equivalent sales quantity = 1,841T = 4,058,705 lbs 

thus

Q2-24 V2O5 equivalent Revenue = $6.52 x 4,058,705 lbs = ~US$26.5M

Q1-24 Ilmenite sales quantity =  513T

Q1-24 Ilmenite sales revenue = US$69,000 or $135/T

For the sake of argument let’s generously assume that the Q2-24 sale price of Ilmenite = US$270/T or double the sale price of Q1-24.

Q2-24 Ilmenite sales quantity = 12,261T

Thus 

Q2-24 Ilmenite sales revenue = $270 x 12,261T = US$3.3M

Total Q2-24 Revenue = $26.5 + $3.3 = ~US$30M

Note: In Q1-24 Largo incurred a Net Loss before Tax of (US$18.3M) out of a total Revenue of US$42.2M

So brace yourself for a very “challenging” Q2-24.

Q3-24 is already underway and there is still no sign of a Vanadium recovery. How can Largo stay afloat in a sea of red ink? 

DYODD

[Christop]

Interesting but there are 297,000 shares traded yesterday that disagree with you.

[mudguy]

Chart looks like bottom was in April.  Market is looking past the bad news to the future. Breached 200 dma today.  If that holds, it is bullish.

[kha341]

I said that in Q2-24 Largo will continue to be in the "red" so brace yourself for a very challenging Q2-24. Do your own due dilligence. What ever rocks your boat.