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Q1 2024 and Other Highlights
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Australian Vanadium
Overview
Australian Vanadium Limited (ASX:AVL) is a Western Australia-based company focused on the Vanadium supply chain, from mining to batteries. The company has a “pit to battery” strategy, which involves processing the vanadium and creating vanadium electrolytes to manufacture vanadium flow batteries (VFB) and become a VFB supplier in Australia.
AVL will generate vanadium concentrate at the mine, which will be fed to the company’s processing plant to produce vanadium pentoxide, which will then be used as feedstock for its vanadium electrolyte manufacturing facility. AVL will leverage its wholly-owned subsidiary, VSUN Energy, to create safe and reliable renewable energy storage solutions using VFB.
Currently, around 85 percent of the vanadium is sourced from China, Russia and South Africa. Vanadium is classified as a critical mineral in several countries, including the US, EU and Japan, and with its geopolitically stable environment and mining-friendly policies, Australia makes for an attractive, secure supply source.
AVL boasts a world-class vanadium asset in a tier-1 mining jurisdiction. The company’s flagship Australian Vanadium project is one of the most advanced vanadium projects in the world. The asset comprises vanadium, titanium and magnetite ore body located on wholly-owned tenements, making it scalable. The project will consist of a simple open pit mine and a processing plant, which will be close to a major port bringing lower-cost energy, water and manpower.
AVL’s recent merger with Technology Metals Australia (TMT) has provided several key benefits, including the consolidation of each company’s tenements into one big project. The merger has created a 17 kilometre strike for the high-grade magnetite domain, allowing for efficient mine infrastructure. Moreover, the merger improves the project's economics through access to high-grade mineralization, which is now unconstrained.
A bankable feasibility study (BFS) prior to the merger had the following key parameters:
- Annual production of 11,200 t V2O5
- Mine life of 25 years
- Pre-production capex of $435 million
- Opex of $4.43/lb of V2O5
Following the merger, the company is preparing an optimized feasibility study (OFS) to improve the capex and opex and deliver better project economics. The next steps for the project include a combined mineral resource estimate, publishing the OFS report, certain approvals, offtake agreements, and financing.
The demand for vanadium is expected to increase significantly due to the growth of VFBs. However, the fundamental demand for vanadium remains strong across the end markets, including its application in steel production, aerospace and energy storage. In fact, a sharp rise in demand for energy storage applications will result in a supply deficit that will grow from 2024 onwards.
Vanadium flow batteries have two tanks filled with vanadium electrolyte fuel. First invented 40 years ago, VFBs have since been commercialized for large-scale applications. The technology offers compelling cost savings for applications with greater than four hours of storage.
The VFB technology has several technological and economic merits that are driving the scale of the projects. First, it is superior economically for long-duration storage applications. Second, it is non-flammable, making it very stable. Third, it provides 100 percent depth of discharge with multiple cycles. Fourth, it offers a life span of over 25 years. Fifth, it is easy to scale. It is well proven at MWh scale and is now moving towards GWh scale.
Given these techno-economic benefits, the VFB industry is experiencing unprecedented global growth, led by China. Currently, 208 VFBs are in operation, 51 are under construction, and 87 new projects have been announced. To give an idea of this rising demand, in 2025, China alone will consume 11 times AVL's annual production of 11,200 tons of V2O5.
The company has a well-crafted vertical integration strategy to participate across the vanadium supply chain. In addition to supplying vanadium, the company is present in the manufacturing of vanadium electrolyte and batteries.
AVL’s Vanadium Electrolyte Facility official opening by Australian Government minister for resources and Northern Australia Hon. Madeleine King MP alongside non-executive director Anna Sudlow, chair Cliff Lawrenson, CEO Graham Arvidson and non-executive director Miriam Stanborough.
AVL has completed the construction of a vanadium electrolyte manufacturing plant in Perth, Western Australia. The project has received funding from the Australian Government. The plant has a capacity of 33 MWh per annum of energy storage. The first production was completed in 2024, and VFB manufacturers will test samples. The electrolyte produced is further processed by AVL’s wholly-owned subsidiary, VSUN Energy, to create large scale energy storage solutions using VFBs.
Company Highlights
- Australian Vanadium Limited (AVL) is a Western Australia-based company focused on the entire vanadium supply chain, from mining to batteries. The company’s “pit to battery” strategy includes processing the vanadium to create vanadium electrolytes for vanadium flow batteries (VFB), as the company intends to become a VFB supplier in Australia.
- The Australian Vanadium project is the company’s flagship mining project and is one of the most advanced projects globally.
- The company recently completed its merger with Technology Metals Australia (TMT), which is likely to significantly boost the project's economics. The company is working on the project's optimized feasibility study (OFS) report.
- Given that only three countries (Russia, China and South Africa) contribute 85 percent of the global supply of vanadium, an Australian supply source makes the project attractive.
- The demand for vanadium is poised to grow across the end markets, including steel, aerospace and battery storage. Growing demand for VFBs has the potential to provide a sizable end-demand market for vanadium. Vanadium demand from batteries could reach 50 percent of the total demand by 2030, from the current share of just 7 percent.
- The company has a well-crafted vertical integration strategy. In addition to vanadium supply, it is also focusing on vanadium electrolyte manufacturing and the supply of VFBs to the Australian market.
- VSUN Energy, AVL’s subsidiary, creates safe and reliable renewable energy storage solutions using vanadium flow battery technology.
Key Operating Segments
Exploration
The segment comprises the Australian Vanadium project and other exploration projects.
Australian Vanadium Project
The Australian Vanadium project is the company’s flagship asset and one of the most advanced vanadium projects in the world. The Australian government recognized the project, which received federal major project status.
The project consists of high-grade V-Ti-Fe deposits located in Murchison Province, around 43 kilometres from the mining town of Meekatharra in Western Australia. It is around 740 kilometres from Perth, and a processing plant is located near the port city of Geraldton. The project comprises 15 tenements and spans an area of 200 square kilometres.
Before its merger with TMT, the company released a bankable feasibility study in 2022, showing a total mineral resource estimated at 239 million tons (Mt) at 0.73 percent of V2O5. The project IRR stands between 16.1 percent and 26.9 percent based on various price assumptions.
Following the merger with TMT, the company anticipates better project economics, given that it will now have easy access to the ore body's high-grade areas, which was previously constrained. Prior to the merger, TMT tenements at the northern end of the ore body and a small block at the southern end were surrounded by AVL’s tenements, which constrained the development. The merger has created 17 kilometres of strike for the high-grade magnetite domain and allows for efficient mine infrastructure.
Coates Project – Vanadium, PGE, Nickel and Copper
The Coates project is a non-core project for the company. The project is 60 kilometres east of Perth in the Shire of Wundowie. A significant discovery of Ni-Cu-PGE by Chalice Gold Mines is just 20 kilometres from the company’s tenement, which covers an area of 111.6 square kilometres, with new applications adding 52.6 square kilometres to the area. Historic exploration of the project focused on iron-titanium-vanadium. The focus was the recovery of vanadium-titano-magnetite concentrate for use in the historical Wundowie smelter.
Nowthanna Hill – Uranium and Vanadium
Nowthanna Hill is a non-core project for the company located 50 kilometres south of Meekatharra in Western Australia, where vanadium and uranium are co-mineralized. The project resource estimate was completed in 2019. Based on 250 parts per million (ppm) V2O5 cut-off, the inferred mineral resource stands at 3.2 Mt at 334 ppm V2O5. Based on 200 ppm U3O8 cut-off, the inferred mineral resource stands at 4.22 Mt at 409 ppm U3O8.
Energy storage
This segment comprises AVL’s wholly-owned subsidiary, VSUN Energy, which develops safe and reliable renewable energy storage solutions using VFB technology. VSUN Energy is focused on developing the Australian market for VFB, and utilizes VFB technology from various global OEMs, including Invinity Energy Systems, CellCube, Sumitomo and VFlow Tech.
The company is working on several projects for VFBs in Australia, including:
- Horizon Power - 78 kW/220 kWh pilot project in Kununurra, WA
- IGO - supply and installation of an 80 kW/300 kWh VFB at Nova Nickel Operation
- Victoria – supply and installation of a 20 kW/80 kWh VFB
- Manufacture of a prototype residential 5 kW/15 kWh VFB
- Water Corporation – successful completion of trial of a 5 kW/30 kWh VFB
Electrolyte Plant
This segment comprises AVL’s vanadium electrolyte manufacturing facility in Western Australia. The facility was successfully and safely completed in December 2023. It was made possible with support from the federal government, which awarded AVL a $3.69 million Australian Government Modern Manufacturing Translation grant in 2021 under the National Manufacturing Priority Roadmap.
The facility can support 33 MWh of VFB energy storage per year, and AVL has the capability to expand conveniently. By sourcing electrolyte locally, AVL aims to establish itself as a reliable provider of vanadium electrolyte for battery projects not only in Australia but also across the broader region.
Management Team
Cliff Lawrenson – Non-executive Chairman
Cliff Lawrenson has a decade of experience as a chairman and director of both private and public companies. Currently, he serves as chairman of Paladin Energy, Caspin Resources and Pacific Energy. Previously, he held senior leadership roles at various companies in the mining and mining services sectors.
Daniel Harris – Non-executive Director
Daniel Harris has a B.Sc. degree and has rich experience in the vanadium industry in the technical and financial domains. He is currently a director Queensland Energy & Minerals, and Flinders Mines. Previously, he held senior leadership roles at U.S Vanadium, Atlas Iron, Atlantic, Evraz Group, Vametco Alloys and Strategic Minerals.
Miriam Stanborough – Non-executive Director
Miriam Stanborough has a degree in chemical engineering and has over two decades of experience in the mineral processing industry. She has held senior leadership roles at Alcoa, Monadelphous, Iluka Resources and WMC Resources. She currently serves on the boards of Pilbara Minerals and BCI Minerals, and is a chair of the Minerals Research Institute of Western Australia.
Peter Watson – Non-executive Director
Peter Watson has a degree in chemical engineering and has over four decades of rich experience in various domains at several ASX-listed companies. He is a director of Paladin Energy, New Century Resources and Strandline Resources.
Anna Sudlow - Non-executive Director
Anna Sudlow has a B. Com degree, a CPA designation, and an MBA. She is a senior finance executive with rich experience in the mining and resources sector. She is currently CFO at Paladin Energy.
Jo Gaines - Non-executive Director
Jo Gaines has a BA degree from the University of Western Australia, a diploma in Occupational Health and Safety from Curtin University, and is also a graduate of the Australian Institute of Company Directors. She has previously served as deputy chief of staff for the Premier of Western Australia. She currently serves as a chair of the Government Employees Superannuation Board and is also associated with Chalice Mining, CinefestOZ and Gaines Advisory.
Graham Arvidson – Chief Executive Officer
Graham Arvidson has over 18 years of experience in the minerals sector, working with commodities such as vanadium, nickel, lithium and others. He also has rich project development experience, covering various areas such as managing contracts, tendering, negotiations, O&M and project delivery.
Todd Richardson – Chief Operating Officer
Todd Richardson has a B.Sc. degree and an MBA. He has over two decades of experience in the vanadium industry across various domains such as design, commissioning and operations. He has rich experience in operations management and technical services in the US and Australia.
Louis Mostert – Chief Legal and Commercial Officer
Louis Mostert has a bachelor’s degree in engineering and law from the University of Western Australia, and a diploma from the Governance Institute of Australia. He has over two decades of rich experience across various functions such as project finance, M&A, corporate advisory, insurance, work health and safety, governance, and compliance.
Tom Plant – Chief Financial Officer
Tom Plant is a qualified chartered accountant with an MBA from INSEAD, an M.Sc. degree from Curtin University, and a B.Com. degree from the University of Western Australia. He is a seasoned finance professional with over thirty years of experience in corporate and commercial roles.
Ross Jennings – Chief Safety and People Officer
Ross Jennings has formal qualifications in health & safety, environmental management and HR. He has over 18 years of experience in the mining industry, holding leadership roles across various functions such as operations, health, safety and emergency response.
Flormirza Cabalteja - Executive General Manager: Project Delivery – Downstream
Flormirza Cabalteja has a degree in chemical engineering with 17 years of rich experience in the downstream refinery industry of vanadium, cobalt, nickel and ammonium phosphate-based fertilizers. She has extensive experience in both technical management and operational aspects.
Ian Prentice – Executive Integration
Ian Prentice has a B.Sc. degree in geology from the University of Western Australia and has over three decades of experience in the global mining industry.
This profile was written in collaboration with Couloir Capital.
Largo Reports First Quarter 2024 Financial Results; Cost Reduction Measures and Productivity Initiatives Underway
- Revenues of $42.2 million in Q1 2024 vs. 57.4 million in Q1 2023; Lower revenues driven by a significant decrease in vanadium prices; Revenues per pound sold i of $6.91 in Q1 2024 vs. $9.14 in Q1 2023
- Operating costs of $49.7 million in Q1 2024 vs. $45.9 million in Q1 2023
- Cash operating costs excluding royalties per pound 6 of $6.12 per lb V 2 O 5 equivalent sold in Q1 2024 vs. $5.15 per lb in Q1 2023; Higher operating costs are largely associated with the extended maintenance period in Q1 2024 and included a write-down of produced vanadium products of $4.5 million
- Net loss of $13.0 million in Q1 2024, which included $4.4 million in non-recurring items vs. a net loss of $1.2 million in Q1 2023, which included $0.1 million in non-recurring items; Basic loss per share of $0.20 in Q1 2024 vs. basic loss per share of $0.02 in Q1 2023
- Cash balance of $45.7 million, net working capital ii surplus of $70.8 million and debt of $75.0 million exiting Q1 2024
- V 2 O 5 equivalent sales of 2,765 tonnes (inclusive of 156 tonnes of purchased material) in Q1 2024 vs. 2,849 equivalent tonnes sold (inclusive of 245 tonnes of purchased material) in Q1 2023
- V 2 O 5 production of 1,729 tonnes (3.8 million lbs iii ) in Q1 2024 vs. 2,111 tonnes produced in Q1 2023; Lower production in Q1 2024 was expected and is largely attributable to the completion of the Company's planned kiln refractory replacement and other plant maintenance activities during the quarter
- The Company produced 9,563 tonnes of ilmenite concentrate in Q1 2024, an increase of 7% from Q4 2023, and sold 513 tonnes of ilmenite concentrate in Q1 2024; Ilmenite sales were below Q1 2024 guidance due to operational and administrative delays
- Q1 2024 results conference call: Thursday, May 16th at 10:00 a.m. ET
Vanadium Market Update iv
- Due to adverse conditions in the Chinese and European steel industries, spot demand for Q1 2024 continued to be weak; however, strong aerospace demand continued; Future quarters are expected to witness an increase in demand for energy storage, specifically in China
- The average benchmark price per pound of V 2 O 5 in Europe was $6.44 in Q1 2024, a 38% decrease from the average of $10.39 seen in Q1 2023. The average benchmark price per kg of ferrovanadium in Europe was $27.96 in Q1 2024, a 30% decrease from the average of $39.46 seen in Q1 2023
- The average benchmark price per pound of V 2 O 5 in Europe as of May 10, 2024 was $5.87
Largo Inc. (" Largo " or the " Company ") ( TSX: LGO ) ( NASDAQ: LGO ) today released financial results for the three months ended March 31, 2024. The Company reported quarterly vanadium pentoxide (" V 2 O 5 ") equivalent sales of 2,765 tonnes at a cash operating cost excluding royalties per pound 6 sold of $6.12.
Daniel Tellechea, Interim CEO and Director of Largo, stated: "Having navigated challenges in the first quarter, such as an extended maintenance period which led to increased costs, and a sharp decline in vanadium prices, our focus remains on restoring profitability at Largo. We continued to realize cost savings at our clean energy division this quarter as a result of initiating our strategic review process, and negotiations with Stryten Energy LLC remain ongoing. While we anticipate elevated costs in the first half of the year, we expect improvements in the second half as the full effects of our previously announced productivity initiatives and cost reduction measures materialize at our Maracás Menchen Mine."
Financial and Operating Results – Highlights
Financial figures expressed in thousands of U.S. dollars, except as otherwise stated | Three months ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | 42,187 | 57,421 |
Operating costs | (49,707) | (45,931) |
Net income (loss) | (13,006) | (1,207) |
Basic earnings (loss) per share | (0.20) | (0.02) |
Adjusted EBITDA v | (3,626) | 9,592 |
Cash (used) provided before working capital items | (7,268) | 8,150 |
Cash operating costs excl. royalties vi ($/lb) | 6.12 | 5.15 |
Cash | 45,656 | 42,714 |
Debt | 75,000 | 75,000 |
Total mined – dry basis (tonnes) | 3,243,492 | 3,523,656 |
Total ore mined (tonnes) | 604,231 | 341,967 |
Effective grade vii of ore milled (%) | 0.82 | 1.08 |
V 2 O 5 equivalent produced (tonnes) | 1,729 | 2,111 |
Ilmenite concentrate produced (tonnes) | 9,563 | Nil |
Q1 2024 Notes
- The Company recorded a net loss of $13.0 million in Q1 2024 compared with a net loss of $1.2 million in Q1 2023, primarily due to a 27% decrease in revenues and an 8% increase in operating costs, which were partially offset by a 24% decrease in professional, consulting and management fees and a 73% decrease in technology start-up costs.
- In Q1 2024, the Company's direct mine and production costs of $29.9 million increased by 5% over Q1 2023, primarily due to the impact of the scheduled plant shutdown in Q1 2024 and the associated lower global recoveries and higher costs as the plant resumed operations. During the shutdown, the kiln refractory was replaced, and annual maintenance activities were performed in the crushing, milling, ilmenite, leaching and chemical sections of the plant.
- Cash operating costs excluding royalties 6 of $6.12 per lb sold in Q1 2024 increased by 19% over Q1 2023 ($5.15 per lb) due to the reasons noted above and included a write-down of produced vanadium products of $4.5 million. Additionally, increased quantities of ore mined and lower grades also impacted the financial performance during the quarter. The Company is actively working to achieve operational stability and operating norms in order to better manage its unit costs and has implemented a number of initiatives with the goal of reducing production costs and improving productivity. These include reducing haulage distances, reducing the number of contractors and a comprehensive review of all contracts.
- Professional, consulting and management fees in Q1 2024 decreased from Q1 2023 by 24% ($1.3 million), primarily due to reduced activity and headcount at Largo Clean Energy Corp. (" LCE ") as a result of the initiation of its strategic review process. Technology start-up costs in Q1 2024 also decreased from Q1 2023 by 73% ($2.0 million), which is primarily attributable to a decrease in activities at LCE in Q1 2024 as the installation of its battery project nears conclusion.
- Subsequent to Q1 2024, production and sales in were 815 tonnes and 757 tonnes of V 2 O 5 equivalent, respectively, in April 2024, with 2,500 tonnes of ilmenite concentrate being produced during this period and 8,363 dry tonnes of ilmenite being sold.
- In May 2024, the Company secured a working capital debt facility with a bank in Brazil for a total limit of $8.0 million. Drawdowns on the facility are repayable in 90 days together with accrued interest at a rate of 8.25% p.a., with renewals subject to approval by the bank.
- On May 15, 2024, the Company signed a binding term sheet for up to $10.0 million in inventory financing. Under the terms of this facility, which shall have a minimum duration of 12 months, the Company will use its vanadium finished products inventory to secure drawdowns of up to $10.0 million for a maximum period of 90 days. Amounts repaid will include a commission fee of 1%, interest at an expected rate of the U.S. Secured Overnight Financing Rate ("SOFR") plus 2.5% and other direct costs.
The information provided within this release should be read in conjunction with Largo's unaudited condensed interim consolidated financial statements for the three months ended March 31, 2024 and 2023 and its management's discussion and analysis for the three months ended March 31, 2024 which are available on our website at www.largoinc.com or on the Company's respective profiles at www.sedarplus.com and www.sec.gov .
About Largo
Largo is a globally recognized vanadium company known for its high-quality VPURE™ and VPURE+™ products, sourced from its Maracás Menchen Mine in Brazil. The Company is currently focused on ramping up production of its ilmenite concentrate plant and is undertaking a strategic evaluation of its U.S.-based clean energy business, including its advanced VCHARGE vanadium battery technology to maximize the value of the organization. Largo's strategic business plan centers on maintaining its position as a leading vanadium supplier with a growth strategy to support a low-carbon future.
Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information, please visit www.largoinc.com .
Cautionary Statement Regarding Forward-looking Information:
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Forward‐looking information in this press release includes, but is not limited to, statements with respect to the timing and amount of estimated future production and sales; the future price of commodities; costs of future activities and operations, including, without limitation, the effect of inflation and exchange rates; the effect of unforeseen equipment maintenance or repairs on production; timing of ilmenite production; the ability to produce high purity V2O5 and V2O3 according to customer specifications; the extent of capital and operating expenditures; the ability of the Company to make improvements on its current short-term mine plan; the impact of global delays and related price increases on the Company's global supply chain and future sales of vanadium products. Forward‐looking information in this press release also includes, but is not limited to, statements with respect to our ability to build, finance and successfully operate a VRFB business, the projected timing and cost of the completion of the EGPE project; our ability to protect and develop our technology, our ability to maintain our IP, the competitiveness of our product in an evolving market, our ability to market, sell and deliver our VCHARGE batteries on specification and at a competitive price, our ability to successfully deploy our VCHARGE batteries in foreign jurisdictions; our ability to negotiate and enter into a joint venture with Ansaldo Green Tech on terms satisfactory to the Company and the success of such joint venture; the receipt of necessary governmental permits and approvals on a timely basis, our ability to secure the required resources to build and deploy our VCHARGE batteries, and the adoption of VRFB technology generally in the market.
The following are some of the assumptions upon which forward-looking information is based: that general business and economic conditions will not change in a material adverse manner; demand for, and stable or improving price of V2O5 and other vanadium commodities; receipt of regulatory and governmental approvals, permits and renewals in a timely manner; that the Company will not experience any material accident, labour dispute or failure of plant or equipment or other material disruption in the Company's operations at the Maracás Menchen Mine or relating to Largo Clean Energy, specially in respect of the installation and commissioning of the EGPE project; the availability of financing for operations and development; the availability of funding for future capital expenditures; the ability to replace current funding on terms satisfactory to the Company; the ability to mitigate the impact of heavy rainfall; the Company's ability to procure equipment, services and operating supplies in sufficient quantities and on a timely basis; that the estimates of the resources and reserves at the Maracás Menchen Mine are within reasonable bounds of accuracy (including with respect to size, grade and recovery and the operational and price assumptions on which such estimates are based); the accuracy of the Company's mine plan at the Maracás Menchen Mine, the competitiveness of the Company's VRFB technology; the ability to obtain funding through government grants and awards for the Green Energy sector, the accuracy of cost estimates and assumptions on future variations of VCHARGE battery system design, that the Company's current plans for ilmenite and VRFBs can be achieved; the Company's "two-pillar" business strategy will be successful; the Company's sales and trading arrangements will not be affected by the evolving sanctions against Russia; and the Company's ability to attract and retain skilled personnel and directors; the ability of management to execute strategic goals.
Forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo or Largo Clean Energy to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on www.sedar.com and available on www.sec.gov from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo's annual and interim MD&As which also apply.
Trademarks are owned by Largo Inc.
Non-GAAP Measures
The Company uses certain non-GAAP measures in its press release, which are described in the following section. Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS, the Company's GAAP, and might not be comparable to similar financial measures disclosed by other issuers. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Revenues Per Pound
This press release refers to revenues per pound sold, V 2 O 5 revenues per pound of V 2 O 5 sold, V 2 O 3 revenues per pound of V 2 O 3 sold and FeV revenues per kg of FeV sold, a non-GAAP performance measure that is used to provide investors with information about a key measure used by management to monitor the performance of the Company.
This measure, along with cash operating costs and total cash costs, is considered to be one of the key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine and sales activities. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS.
The following table provides a reconciliation of this measure of revenues per pound sold, V 2 O 5 revenues per pound of V 2 O 5 sold, V 2 O 3 revenues per pound of V 2 O 3 sold and FeV revenues per kg of FeV sold, as per the Q1 2024 unaudited condensed interim consolidated financial statements.
Three months ended | |||||
March 31, | March 31, | ||||
Revenues - V 2 O 5 produced 1 | $ | 21,558 | $ | 34,526 | |
V 2 O 5 sold - produced (000s lb) | 3,113 | 3,798 | |||
V 2 O 5 revenues per pound of V 2 O 5 sold - produced ($/lb) | $ | 6.93 | $ | 9.09 | |
Revenues - V 2 O 5 purchased 1 | $ | 988 | $ | 2,528 | |
V 2 O 5 sold - purchased (000s lb) | 176 | 309 | |||
V 2 O 5 revenues per pound of V 2 O 5 sold - purchased ($/lb) | $ | 5.61 | $ | 8.18 | |
Revenues - V 2 O 5 1 | $ | 22,546 | $ | 37,054 | |
V 2 O 5 sold (000s lb) | 3,289 | 4,107 | |||
V 2 O 5 revenues per pound of V 2 O 5 sold ($/lb) | $ | 6.85 | $ | 9.02 | |
Revenues - V 2 O 3 produced 1 | $ | 6,203 | $ | 1,483 | |
V 2 O 3 sold - produced (000s lb) | 668 | 134 | |||
V 2 O 3 revenues per pound of V 2 O 3 sold - produced ($/lb) | $ | 9.29 | $ | 11.07 | |
Revenues - V 2 O 3 purchased 1 | $ | — | $ | 1,155 | |
V 2 O 3 sold - purchased (000s lb) | — | 88 | |||
V 2 O 3 revenues per pound of V 2 O 3 sold - purchased ($/lb) | $ | — | $ | 13.13 | |
Revenues - V 2 O 3 1 | $ | 6,203 | $ | 2,637 | |
V 2 O 3 sold (000s lb) | 668 | 223 | |||
V 2 O 3 revenues per pound of V 2 O 3 sold ($/lb) | $ | 9.29 | $ | 11.83 | |
Revenues - FeV produced 1 | $ | 12,249 | $ | 17,428 | |
FeV sold - produced (000s kg) | 569 | 568 | |||
FeV revenues per kg of FeV sold - produced ($/kg) | $ | 21.53 | $ | 30.68 | |
Revenues - FeV purchased 1 | $ | 1,120 | $ | 301 | |
FeV sold - purchased (000s kg) | 51 | 10 | |||
FeV revenues per kg of FeV sold - purchased ($/kg) | $ | 21.96 | $ | 30.10 | |
Revenues - FeV 1 | $ | 13,369 | $ | 17,730 | |
FeV sold (000s kg) | 620 | 578 | |||
FeV revenues per kg of FeV sold ($/kg) | $ | 21.56 | $ | 30.67 | |
Revenues 1 | $ | 42,118 | $ | 57,421 | |
V 2 O 5 equivalent sold (000s lb) | 6,096 | 6,281 | |||
Revenues per pound sold ($/lb) | $ | 6.91 | $ | 9.14 | |
1. As per note 18 of the Company's Q1 2024 unaudited condensed interim consolidated financial statements. | |||||
Cash Operating Costs Excluding Royalties Per Pound
The Company's press release refers to cash operating costs excluding royalties per pound, which are non-GAAP ratios based on cash operating costs and cash operating costs excluding royalties, which are non-GAAP financial measures, in order to provide investors with information about a key measure used by management to monitor performance. This information is used to assess how well the Maracás Menchen Mine is performing compared to plan and prior periods, and also to assess its overall effectiveness and efficiency.
Cash operating costs includes mine site operating costs such as mining costs, plant and maintenance costs, sustainability costs, mine and plant administration costs, royalties and sales, general and administrative costs (all for the Mine properties segment), but excludes depreciation and amortization, share-based payments, foreign exchange gains or losses, commissions, reclamation, capital expenditures and exploration and evaluation costs. Operating costs not attributable to the Mine properties segment are also excluded, including conversion costs, product acquisition costs, distribution costs and inventory write-downs.
Cash operating costs excluding royalties is calculated as cash operating costs less royalties. Cash operating costs per pound and cash operating costs excluding royalties per pound are obtained by dividing cash operating costs and cash operating costs excluding royalties, respectively, by the pounds of vanadium equivalent sold that were produced by the Maracás Menchen Mine. Cash operating costs, cash operating costs excluding royalties, cash operating costs per pound and cash operating costs excluding royalties per pound, along with revenues, are considered to be key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS.
The following table provides a reconciliation of cash operating costs and cash operating costs excluding royalties, cash operating costs per pound and cash operating costs excluding royalties per pound for the Maracás Menchen Mine to operating costs as per the Q1 2024 unaudited condensed interim consolidated financial statements.
Three months ended | ||||||
March 31, | March 31, | |||||
Operating costs i | $ | 49,707 | $ | 45,931 | ||
Professional, consulting and management fees ii | 462 | 844 | ||||
Other general and administrative expenses iii | 279 | 309 | ||||
Less: ilmenite costs i | (47 | ) | — | |||
Less: iron ore costs i | — | (273 | ) | |||
Less: conversion costs i | (2,023 | ) | (1,918 | ) | ||
Less: product acquisition costs i | (2,050 | ) | (4,178 | ) | ||
Less: distribution costs i | (1,818 | ) | (1,447 | ) | ||
Less: inventory write-down iv | 446 | — | ||||
Less: depreciation and amortization expense i | (8,077 | ) | (7,251 | ) | ||
Cash operating costs | 36,879 | 32,107 | ||||
Less: royalties 1 | (1,673 | ) | (2,445 | ) | ||
Cash operating costs excluding royalties | 35,206 | 29,572 | ||||
Produced V 2 O 5 sold (000s lb) | 5,753 | 5,741 | ||||
Cash operating costs per pound ($/lb) | $ | 6.41 | $ | 5.58 | ||
Cash operating costs excluding royalties per pound ($/lb) | $ | 6.12 | $ | 5.15 | ||
| i. | As per note 19 of the Company's Q1 2024 unaudited condensed interim consolidated financial statements. |
| ii. | As per the Mine properties segment in note 15 of the Company's Q1 2024 unaudited condensed interim consolidated financial statements. |
| iii. | Year ended as per the Mine properties segment in note 15 less the increase in legal provisions of $491 (for Q1 2024) as noted in the "other general and administrative expenses" section on page 6 of the Company's Q1 2024 unaudited condensed interim consolidated financial statements. |
| iv. | As per note 5 of the Company's Q1 2024 unaudited condensed interim consolidated financial statements for ilmenite finished products and warehouse supplies, and including a write-down of vanadium purchased products of $(341). |
EBITDA and Adjusted EBITDA
The Company's press release refers to earnings before interest, tax, depreciation and amortization, or "EBITDA", and adjusted EBITDA, which are non-GAAP financial measures, in order to provide investors with information about key measures used by management to monitor performance. EBITDA is used as an indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
Adjusted EBITDA removes the effect of inventory write-downs, impairment charges (including write-downs of vanadium assets), insurance proceeds received, movements in legal provisions, non-recurring employee settlements and other expense adjustments that are considered to be non-recurring for the Company. The Company believes that by excluding these amounts, which are not indicative of the performance of the core business and do not necessarily reflect the underlying operating results for the periods presented, it will assist analysts, investors and other stakeholders of the Company in better understanding the Company's ability to generate liquidity from its core business activities.
EBITDA and adjusted EBITDA are intended to provide additional information to analysts, investors and other stakeholders of the Company and do not have any standardized definition under IFRS. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures exclude the impact of depreciation, costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operating activities as determined under IFRS. Other companies may calculate EBITDA and adjusted EBITDA differently.
The following table provides a reconciliation of EBITDA and adjusted EBITDA to net income (loss) as per the Q1 2024 unaudited condensed interim consolidated financial statements.
Three months ended | ||||||
March 31, | March 31, | |||||
Net loss | $ | (13,006 | ) | $ | (1,207 | ) |
Finance costs | 1,812 | 1,426 | ||||
Interest income | (306 | ) | (712 | ) | ||
Income tax expense | 22 | 333 | ||||
Deferred income tax recovery (expense) | (5,329 | ) | 1,589 | |||
Depreciation i | 8,724 | 8,044 | ||||
EBITDA | $ | (8,083 | ) | $ | 9,473 | |
Inventory write-down ii | 4,080 | — | ||||
Write-down of vanadium assets | (114 | ) | — | |||
Movement in legal provisions iii | 491 | 119 | ||||
Adjusted EBITDA | $ | (3,626 | ) | $ | 9,592 | |
i. | As per the consolidated statements of cash flows in the Company's Q1 2024 unaudited condensed interim consolidated financial statements. |
ii. | As per note 5 of the Company's Q1 2024 unaudited condensed interim consolidated financial statements. |
iii . | As per then "non-recurring items" section on page 5 of the Company's Q1 2024 management's discussion and analysis. |
_________________
1 Revenues per pound sold are non-GAAP ratios with no standard meaning under IFRS, and may not be comparable to similar financial measures disclosed by other issuers. Refer to the "Non-GAAP Measures" section of this press release.
2 Defined as current assets less current liabilities per the consolidated statements of financial position.
3 Conversion of tonnes to pounds, 1 tonne = 2,204.62 pounds or lbs.
4 Fastmarkets Metal Bulletin.
5 Adjusted EBITDA is a non-GAAP financial measure with no standard meaning under IFRS, and may not be comparable to similar financial measures disclosed by other issuers. Refer to the "Non-GAAP Measures" section of this press release.
6 The cash operating costs excluding royalties and revenues per pound per pound sold are reported on a non-GAAP basis. Refer to the "Non-GAAP Measures" section of this press release. Revenues per pound sold are calculated based on the quantity of V2O5 sold during the stated period.
7 Effective grade represents the percentage of magnetic material mined multiplied by the percentage of V2O5 in the magnetic concentrate
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Investor Relations
Alex Guthrie
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+1.416.861.9778
aguthrie@largoinc.com
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Largo Revises First Quarter 2024 Financial Results Release Date to May 15, 2024
Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) announces a revised release date for its first quarter 2024 financial results to Wednesday, May 15, 2024. The Company will host a conference call to discuss its first quarter 2024 results and other updates on Thursday, May 16 at 10:00 a.m. ET.
To join the conference call without operator assistance on the day, you may register and enter your phone number at https://emportal.ink/3JCUmjJ to receive an instant automated call back.
You may also dial direct to be entered to the call by an operator using the dial-in details provided below.
Conference Call Details | |
Date: | Thursday, May 16, 2024 |
Time: | 10:00 a.m. ET |
Dial-in Number: | Local: +1 (416) 764-8650 |
North American Toll Free: +1 (888) 664-6383 | |
Conference ID: | 02623876 |
RapidConnect Link | |
Replay Number: | Local / International: + 1 (416) 764-8677 |
North American Toll Free: +1 (888) 390-0541 | |
Replay Passcode: 623876# | |
Website: | To view press releases or any additional financial information, please visit the Investor Resources section of the Company's website at: https://www.largoinc.com/investors/Overview |
About Largo
Largo is a globally recognized vanadium company known for its high-quality VPURE TM and VPURE+ TM products, sourced from its Maracás Menchen Mine in Brazil. The Company is currently focused on ramping up production of its ilmenite concentrate plant and is undertaking a strategic evaluation of its U.S.-based clean energy business, including its advanced VCHARGE vanadium battery technology to maximize the value of the organization. Largo's strategic business plan centers on maintaining its position as a leading vanadium supplier with a growth strategy to support a low-carbon future.
Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509966240/en/
Investor Relations
Alex Guthrie
Senior Manager, External Relations
+1.416.861.9778
aguthrie@largoinc.com
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Largo to Release its First Quarter 2024 Financial Results on May 10, 2024
Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) will release its first quarter 2024 financial results on Friday, May 10, 2024. Additionally, the Company will host a conference call to discuss its first quarter 2024 results and other updates on Monday, May 13 at 3:30 p.m. ET.
To join the conference call without operator assistance on the day, you may register and enter your phone number at https://emportal.ink/3JCUmjJ to receive an instant automated call back.
You may also dial direct to be entered to the call by an operator using the dial-in details provided below.
Conference Call Details | |
Date: | Monday, May 13, 2024 |
Time: | 3:30 p.m. ET |
Dial-in Number: | Local: +1 (416) 764-8650 |
North American Toll Free: +1 (888) 664-6383 | |
Conference ID: | 02623876 |
RapidConnect Link | |
Replay Number: | Local / International: + 1 (416) 764-8677 |
North American Toll Free: +1 (888) 390-0541 | |
Replay Passcode: 623876# | |
Website: | To view press releases or any additional financial information, please visit the Investor Resources section of the Company's website at: https://www.largoinc.com/investors/Overview |
About Largo
Largo is a globally recognized vanadium company known for its high-quality VPURE TM and VPURE+ TM products, sourced from its Maracás Menchen Mine in Brazil. The Company is currently focused on ramping up production of its ilmenite concentrate plant and is undertaking a strategic evaluation of its U.S.-based clean energy business, including its advanced VCHARGE vanadium battery technology to maximize the value of the organization. Largo's strategic business plan centers on maintaining its position as a leading vanadium supplier with a growth strategy to support a low-carbon future.
Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240502639799/en/
For further information:
Investor Relations
Alex Guthrie
Senior Manager, External Relations
+1.416.861.9778
aguthrie@largoinc.com
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Largo Announces Cost Reduction and Productivity Improvements at its Maracás Menchen Mine; Reports Q1 2024 Production and Sales Results
All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Q1 2024 Highlights
- V 2 O 5 production of 1,729 tonnes (3.8 million lbs 1 ) in Q1 2024 vs. 2,111 tonnes produced in Q1 2023; Within the lower range of Company's quarterly production guidance of 1,700-2,200 tonnes for Q1 2024
- Lower Q1 2024 production was expected and is largely attributable to the completion of the Company's planned kiln refractory replacement; Annual maintenance actions were performed concurrently in the crushing, milling, ilmenite, leaching and chemical sections of the plant; The Company maintains its annual production guidance for 2024
- V 2 O 5 equivalent sales of 2,765 tonnes (inclusive of 156 tonnes of purchased material) in Q1 2024 vs. 2,849 equivalent tonnes sold (inclusive of 245 tonnes of purchased material) in Q1 2023; Within the upper range of the Company's quarterly guidance of 2,300-2,800 tonnes
- The Company produced 9,563 tonnes and sold 513 tonnes of ilmenite concentrate in Q1 2024, respectively; Ilmenite sales were below Q1 2024 guidance due to operational and administrative delays; The Company expects sales to increase in the coming months and maintains its production and sales guidance for 2024
- The Company maintains its annual cost guidance for 2024; As a result of new cost reduction and productivity measures, the Company has lowered its cost guidance for H2 2024, however, it is expected that these cost savings will be offset by higher costs in H1 2024 as a result of the extended kiln maintenance period in Q1 2024
- Negotiations regarding the Company's previously announced signing of a non-binding letter of intent by Largo Clean Energy Corp. with Stryten Energy LLC to establish a 50:50 joint venture in the United States are ongoing
Largo Inc. (" Largo " or the " Company ") ( TSX: LGO ) ( NASDAQ: LGO ) today announces the implementation of extensive changes to reduce production costs and improve productivity at its Maracás Menchen Mine through several initiatives, including the reduction of haulage distances, costs of inputs as well as comprehensive review of all contracts. The Company will reduce the number of contractors by 20% in Q2 2024 and prioritize its capital expenditures for low-cost, high-return projects in order to optimize the use of cash. The Company also announces quarterly production of 1,729 tonnes of vanadium pentoxide (" V 2 O 5 ") equivalent and sales of 2,765 tonnes V 2 O 5 equivalent in Q1 2024.
As part of the plan to increase productivity, the Company plans to increase its annual crushing capacity by approximately 220,000 tonnes or 22% by the end of Q2 2024 following the installation of a mobile crusher, dry magnetic and wet magnetic separator from inventory, which is expected to compensate for lower grades and higher silica levels resulting from increased processing of disseminated vanadium ore. These actions are expected to maintain the Company's production capacity by providing the required throughput and grades needed to achieve its set production targets in accordance with its 2024 mining plan.
Also, starting in Q2 2024, the Company plans to feed its ilmenite plant with ilmenite feedstock from its non-magnetic ponds from ores processed in prior years. This action is expected to increase ilmenite production in 2024 as well as improve titanium dioxide (" TiO 2 ") grades as non-magnetic material stored in the Company's ponds contain higher TiO 2 grades than feedstock from current mine operations.
For the remainder of 2024, the Company expects a reduction of approximately BRL$48 million in operating expenditures and approximately BRL$12 million in ilmenite capital expenditures.
Celio Pereira, COO of Largo, Brazil, stated: "Maximizing operational output and reducing costs remain top priorities at Largo. We have identified several avenues for cost reduction at the Maracás Menchen Mine and we expect to realize the benefits of these initiatives in the second half of the year. When combined with our productivity improvement initiatives this year, these measures are expected to assist the Company in achieving its revised 2024 cost guidance and offset some of the impact of lower vanadium prices." He continued: "In Q1 2024, the operations team conducted the planned annual maintenance at the mine, which included the replacement of the kiln refractory as well annual maintenance actions performed in the crushing, milling, ilmenite, leaching and chemical sections of the plant. Following this maintenance, we also expect to remain within our annual production guidance of 9,000 to 11,000 tonnes of V 2 O 5 for 2024."
Maracás Menchen Mine Operational and Sales Results
Q1 2024 | Q1 2023 | |
Total Mined – Dry Basis (tonnes) | 3,243,492 | 3,523,656 |
Total Ore Mined (tonnes) | 604,231 | 341,967 |
Ore Grade Mined - Effective Grade (%) 2 | 0.53 | 0.81 |
Concentrate Produced (tonnes) | 74,986 | 78,695 |
Grade of Concentrate (%) | 2.90 | 2.99 |
Global Recovery (%) 3 | 70.5 | 83.0 |
V 2 O 5 produced (Flake + Powder) (tonnes) | 1,729 | 2,111 |
V 2 O 5 produced (equivalent pounds) 2 | 3,811,788 | 4,653,953 |
Total V 2 O 5 equivalent sold (tonnes) | 2,765 | 2,849 |
Produced V 2 O 5 equivalent sold (tonnes) | 2,609 | 2,604 |
Purchased V 2 O 5 equivalent sold (tonnes) | 156 | 245 |
Ilmenite concentrate produced (tonnes) | 9,563 | Nil |
Ilmenite concentrate sold (tonnes) | 513 | Nil |
Q1 2024 Production and Sales Overview
- Lower Expected Production in Q1 2024 Due to Kiln Refractory Maintenance: V 2 O 5 production in January was 582 tonnes, with 276 tonnes produced in February and 871 tonnes produced in March, for a total of 1,729 tonnes produced in Q1 2024. Production in Q1 2024 was largely impacted by the replacement of the kiln refractory and associated restart of operations following the performed maintenance during the quarter. During this shutdown, the Company completed its yearly maintenance activities in the crushing, milling, ilmenite, leaching and chemical sections of the plant. In Q1 2024, global recoveries 3 averaged 70.5%, being 15% lower than the 83.0% averaged in Q1 2023 and 11% lower than the 79.4% achieved in Q4 2023. Lower global recoveries 3 achieved during Q1 2024 is largely attributable to the kiln refractory maintenance performed during the quarter. As part of its ongoing efforts to offset lower grades of ore mined in Q1 2024, the Company continued to increase mining throughput during the quarter to 604,231 tonnes with an effective V 2 O 5 grade 2 of 0.53%, compared to 341,967 tonnes with an effective V 2 O 5 grade 2 of 0.81% in Q1 2023. Total crushed ore also increased by 50% over Q1 2023 (344,265 tonnes) to 516,547 tonnes in Q1 2024 and 11% over the 465,619 tonnes crushed in Q4 2023.
- Sales Results in Q1 2024 In Line with Quarterly Guidance – Steel Sector Demand Remains Soft: V 2 O 5 equivalent sales of 2,765 tonnes (inclusive of 156 tonnes of purchased material) was within the upper end of the Company's quarterly guidance range for Q1 2024 but represented a 3% decrease over the 2,849 tonnes sold in Q1 2023. Spot demand remained soft in Q1 2024, primarily due to ongoing adverse conditions in the Chinese and European steel sectors. The average benchmark price per pound of V 2 O 5 in Europe was $6.44 in Q1 2024, a 38% decrease from the average of $10.39 seen in Q1 2023. The average benchmark price per kg of ferrovanadium in Europe was $27.96 in Q1 2024, a 30% decrease from the average of $39.46 seen in Q1 2023.
Revised 2024 Cash Operating Costs Excluding Royalties 1
Cash operating costs excluding royalties ($ / lb V 2 O 5 sold) i | Previous Q2 | Previous Q3 | Previous Q4 | Unchanged 2024 | ||||
Low | High | Low | High | Low | High | Low 4.50 | High 5.50 | |
4.15 | 5.15 | 4.75 | 5.75 | 4.75 | 5.75 | |||
Revised Q2 | Revised Q3 | Revised Q4 | ||||||
Low | High | Low | High | Low | High | |||
4.50 | 5.50 | 4.50 | 5.50 | 4.50 | 5.50 | |||
Ilmenite Concentrate Plant Capital Expenditures | Previous 2024 | Revised 2024 | ||||||
$3.2 – 3.8 million | $1.0 – 2.0 million | |||||||
About Largo
Largo is a globally recognized vanadium company known for its high-quality VPURE TM and VPURE+ TM products, sourced from its Maracás Menchen Mine in Brazil. The Company is currently focused on implementing an ilmenite concentrate plant and is undertaking a strategic evaluation of its U.S.-based clean energy business, including its advanced VCHARGE vanadium battery technology to maximize the value of the organization. Largo's strategic business plan centers on maintaining its position as a leading vanadium supplier with a growth strategy to support a low-carbon future.
Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com .
Cautionary Statement Regarding Forward-looking Information:
This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward looking statements") within the meaning of applicable Canadian and United States securities legislation. Forward‐looking statements in this press release include, but are not limited to: the achievement of operational stability; Largo's ability to improve cash flow in the future; implemented cost reduction measures; expected sales; diversifying the Company's product offering; optimizing operations, continued advancements at the Maracás Menchen Mine; the conclusion of the installation of Largo's battery project; and future commitments to purchase V 2 O 5 .
The following are some of the assumptions upon which forward-looking statements are based: that general business and economic conditions will not change in a material adverse manner; demand for, and stable or improving price of V 2 O 5 and other vanadium commodities; receipt of regulatory and governmental approvals, permits and renewals in a timely manner; that the Company will not experience any material accident, labour dispute or failure of plant or equipment or other material disruption in the Company's operations at the Maracás Menchen Mine or relating to LCE; the availability of financing for operations and development; the ability to mitigate the impact of continuing heavy rainfall; the Company's ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; that the estimates of the resources and reserves at the Maracás Menchen Mine are within reasonable bounds of accuracy (including with respect to size, grade and recovery and the operational and price assumptions on which such estimates are based); the Company's sales and trading arrangements will not be affected by the evolving sanctions against Russia; and the Company's ability to attract and retain skilled personnel and directors; the ability of management to execute strategic goals.
Forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo or LCE to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on www.sedarplus.com and available on www.sec.gov from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo's most recent annual and interim MD&A, which also apply. Largo's most recent annual and interim MD&A are available on Largo's SEDAR+ profile at www.sedarplus.com .
Trademarks are owned by Largo Inc.
1 Conversion of tonnes to pounds, 1 tonne = 2,204.62 pounds or lbs.
2 Effective grade represents the percentage of magnetic material mined multiplied by the percentage of V2O5 in the magnetic concentrate.
3 Global recovery is the product of crushing recovery, milling recovery, kiln recovery, leaching recovery and chemical plant recovery.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240430525815/en/
For further information:
Investor Relations
Alex Guthrie
Senior Manager, External Relations
+1.416.861.9778
aguthrie@largoinc.com
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