Australian Vanadium (ASX:AVL, FRA:JT71, OTC:ATVVF), FRA:JT71, OTC:ATVVF) holds one of the most advanced high-grade vanadium deposits in the world and now focuses significantly on developing its Australian Vanadium project, a high-grade vanadium, titanium and iron resource situated roughly 43 kilometers south of the mining town of Meekatharra in Western Australia.
The company's wholly-owned subsidiary VSUN Energy has current projects including the installation of a VRFB to power an industrial chlorinator, as a standalone power system for a bore pump at a major nickel project, and to power the systems at an orchard in Victoria. VSUN Energy is also consulting with several major mining clients as the demand for vanadium is expected to double by 2032, with 90 percent of this demand driven by VRFBs.
The major component of a VRFB is vanadium electrolyte. This solution of vanadium mixed with acid and water will be manufactured by AVL at a facility being constructed in the Perth region.
Both VSUN Energy and the AVL are part of Australian Vanadium's vertically integrated strategy, through which it intends to support every stage of VRFB production. This will, the company maintains, give it the ability to not only produce the world's highest-quality vanadium, but also tailor that vanadium to its customers’ needs.
This Australian Vanadium profile is part of a paid investor education campaign.*
Virtual Investor Conferences, the leading proprietary investor conference series, announced the presentations from the CleanTech and Precious Metal Virtual Investor Conference held on February 14 th -16 th are now available for online viewing.
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The company presentations will be available 24/7 for 90 days. Investors, advisors, and analysts may download investor materials from the company's resource section.
Select companies are accepting 1x1 management meeting requests through February 21 st , 2023.
February 14th
| Presentation | Ticker(s) |
| Deep Yellow Ltd. | OTCQX: DYLLF | ASX: DYL |
| Madison Metals Inc. | OTCQB: MMTLF | CSE: GREN |
| Blue Sky Uranium Corp. | OTCQB: BKUCF | TSXV: BSK |
| Kraken Energy Corp. | OTCQB: UUSAF | CSE: UUSA |
| Fission Uranium Corp. | OTCQX: FCUUF | TSX: FCU |
| Peninsula Energy Ltd. | OTCQB: PENMF | ASX: PEN |
| Keynote Presentation: The Outlook for Vanadium Supply/Demand Projections and Analysis Terry Perles, Secretary of Board of Directors US Vanadium | |
| Energy Fuels Inc. | NYSE American: UUUU | TSX: EFR |
| Largo Physical Vanadium Corp. | TSXV: VAND |
| Currie Rose Resources Inc. | Pink: CUIRF | TSXV: CUI |
| Phenom Resources Corp. | OTCQX: PHNMF | TSXV: PHNM |
| Australian Vanadium Limited | OTCQB: ATVVF | ASX: AVL |
February 15th
| Presentation | Ticker(s) |
| Vision Lithium Inc. | OTCQB: ABEPF | TSXV: VLI |
| CleanTech Lithium PLC | OTCQB: CTLHF |AIM: CTL |
| Collective Mining Ltd. | OTCQX: CNLMF | TSXV: CNL |
| Precipitate Gold Corp. | OTCQB: PREIF | TSXV: PRG |
| Golden Arrow Resource Corp. | OTCQB: GARWF | TSXV: GRG |
| Metallic Minerals Corp. | OTCQB: MMNGF | TSXV: MMG |
| Faraday Copper Corp. | OTCQX: CPPKF | TSX: FDY |
| Avalon Advanced Materials Inc. | OTCQB: AVLNF | TSX: AVL |
| Sun Summit Minerals Corp. | OTCQB: SMREF | TSXV: SMN |
| Wealth Minerals Ltd. | OTCQB: WMLLF | TSXV: WML |
| Southern Silver Exploration Corp. | OTCQX: SSVFF | TSXV: SSV |
| Pacific Ridge Exploration Ltd. | OTCQB: PEXZF | TSXV: PEX |
February 16th
| Presentation | Ticker(s) |
| Guanajuato Silver Co Ltd. | OTCQX: GSVRF | TSXV: GSVR |
| Doré Copper Mining Corp. | OTCQX: DRCMF | TSXV: DCMC |
| Amex Exploration Inc. | OTCQX: AMXEF | TSXV: AMX |
| Barksdale Resources Corp. | OTCQX: BRKCF | TSXV: BRO |
| Grounded Lithium Corp. | OTCQB: GRDAF | TSXV: GRD |
| Giga Metals | OTCQX: HNCKF | TSXV: GIGA |
| Lavras Gold Corp. | OTCQB: LGCFF | TSXV: LGC |
| Century Lithium Corp. | OTCQX: CYDVF | TSXV: LCE |
| Power Nickel Inc. | OTCQB: PNPNF | TSXV: PNPN |
| O3 Mining Inc | OTCQX: OIIIF | TSXV: OIII |
| Outcrop Silver & Gold Corp. | OTCQX: OCGSF | TSXV: OCG |
| Empress Royalty Corp. | OTCQX: EMPYF | TSX-V: EMPR |
To facilitate investor relations scheduling and to view a complete calendar of Virtual Investor Conferences, please visit www.virtualinvestorconferences.com .
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Providing a real-time investor engagement solution, VIC is specifically designed to offer companies more efficient investor access. Replicating the components of an on-site investor conference, VIC offers companies enhanced capabilities to connect with investors, schedule targeted one-on-one meetings and enhance their presentations with dynamic video content. Accelerating the next level of investor engagement, Virtual Investor Conferences delivers leading investor communications to a global network of retail and institutional investors.
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All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Q4, Full Year 2024 and Other Highlights
Vanadium Market Update
Largo Inc. (" Largo " or the " Company ") ( TSX: LGO ) ( NASDAQ: LGO ) today reported financial and operational results for the three and twelve months ended December 31, 2024. Amid challenging market conditions and declining vanadium prices, the Company has increased its focus on operational improvements, further cost reductions, and productivity enhancements at its Maracás Menchen Mine. The Company achieved annual vanadium pentoxide (" V₂O₅ ") equivalent sales of 9,600 tonnes, with adjusted cash operating costs excluding royalties per pound¹ sold improving significantly to $3.04 in Q4 2024 down from $5.04 in Q4 2023.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250328844695/en/
Largo Reports Q4 and Full Year 2024 Financial Results; Announces Operational Turnaround Plan and Additional Cost Optimization Initiatives
Daniel Tellechea, Interim CEO and Director of Largo, stated: "We recognize the significant operational and market challenges Largo has encountered and are taking decisive steps to reposition the Company. While our cost reduction initiatives have already delivered measurable results—such as a 30% reduction in operating costs in Q4 2024 compared to the prior year—we continue to face production challenges and near-term financial pressures that require focused action." He continued: "As part of our operational turnaround strategy, we've implemented a number of critical initiatives in recent months to further enhance productivity and strengthen cost controls. With the appointment of Gordon Babcock and Luis Rendón as Co-Chief Operating Officers in February 2025, we've further intensified our focus on execution and efficiency across the business. Under their leadership, our team is actively identifying and acting on additional opportunities to improve operational performance."
He concluded: "We are also prioritizing efforts to reinforce our liquidity position and are pursuing a range of strategic and refinancing options to support ongoing operations. Driving a successful turnaround remains a company-wide priority, and we remain focused on taking the steps needed to help strengthen Largo's operational and financial foundation for the future."
Financial and Operating Results – Highlights
(thousands of U.S. dollars, except as otherwise stated) | Three months ended | Year ended | ||
Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2024 | Dec. 31, 2023 | |
Revenues | 24,268 | 44,170 | 124,920 | 198,684 |
Operating costs | (30,194) | (43,218) | (145,818) | (174,758) |
Net income (loss) | (12,990) | (13,301) | (50,565) | (32,358) |
Basic earnings (loss) per share | (0.19) | (0.21) | (0.78) | (0.51) |
Adjusted EBITDA 1 | 2,337 | 793 | (2,076) | 11,948 |
Mining operations adjusted EBITDA 1 | 4,466 | 3,503 | 7,976 | 29,992 |
Cash provided before working capital items (operating activities) | 18,563 | 43 | 16,038 | 9,335 |
Cash operating costs excl. royalties ($/lb) 1 | 3.67 | 5.44 | 4.84 | 5.30 |
Adjusted cash operating costs excl. royalties 1 ($/lb) | 3.05 | 5.04 | 4.05 | 5.19 |
Cash | 22,106 | 42,714 | 22,106 | 42,714 |
Debt | 92,280 | 75,000 | 92,280 | 75,000 |
Total mined – dry basis (tonnes) | 3,673,416 | 3,490,711 | 13,949,665 | 14,864,394 |
Total ore mined (tonnes) | 476,742 | 473,958 | 2,249,759 | 1,752,982 |
Effective grade of ore milled 2 (%) | 0.73 | 1.03 | 0.88 | 1.04 |
V 2 O 5 equivalent produced (tonnes) | 1,775 | 2,768 | 9,264 | 9,681 |
Ilmenite concentrate produced (tonnes) | 10,292 | 8,970 | 44,863 | 8,970 |
Key Highlights
The information provided within this release should be read in conjunction with Largo's annual consolidated financial statements for the years ended December 31, 2024 and 2023 and its management's discussion and analysis for the year ended December 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 .
Operational Turnaround and Cost Optimization Strategy
In recent months, the Company has implemented several critical initiatives aimed at addressing operational challenges, enhancing productivity, and strengthening cost controls. Following the appointment of Gordon Babcock and Luis Rendón as Co-Chief Operating Officers in February 2025, Largo has further increased its focus on operational execution and efficiencies. Under their leadership, the team is actively identifying additional areas for improvement and implementing targeted enhancements to drive increased performance. Successfully executing the Company's operational turnaround remains a top priority and will require the collective efforts of the entire team.
Key actions underway and priorities ahead include:
The Company recognizes that while its ongoing operational turnaround is a critical step forward, additional measures are needed to fully address the Company's broader financial headwinds. Market conditions, including a 21% decline in vanadium prices since December 31, 2023, and an elevated cost environment, have affected cash flows and financial forecasts. In response, the Company has taken decisive actions to strengthen its financial position, including ongoing cost reductions, operational efficiencies, and liquidity management. As a result of its cost reduction initiatives, the Company has recognized a 30% reduction in operating costs in Q4 2024 vs. Q4 2023. The Company is also actively working to improve its liquidity to support long-term goals, including exploring financing alternatives such as refinancing existing debt and securing additional capital through new debt facilities.
The Company will continue to monitor its progress and provide updates as needed. At this time, it will maintain its annual guidance ranges for 2025 and will reassess as operational improvements advance. Should any material changes to guidance be necessary, the Company will update the market accordingly.
About Largo
Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in Brazil. As one of the world's largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The Company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.
Largo is also strategically invested in the long-duration energy storage sector through its 50% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S.
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" 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; 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; and the impact of global delays and related price increases on the Company's global supply chain and future sales of vanadium products.
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 products, ilmenite and titanium dioxide pigment; 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 reliability of production, including, without limitation, access to massive ore, 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; that the Company's current plans for ilmenite can be achieved; the Company's ability to protect and develop its technology; the Company's ability to maintain its IP; the competitiveness of the Company's product in an evolving market; the Company's ability to attract and retain skilled personnel and directors; the ability of management to execute strategic goals; that the Company will enter into agreements for the sales of vanadium, ilmenite and TiO2 products on favourable terms and for the sale of substantially all of its annual production capacity; and receipt of regulatory and governmental approvals, permits and renewals in a timely manner.
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", although not all forward-looking statements include those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Forward-looking statements are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances. Forward-looking statements are based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo 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.ca 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&A which also apply.
Trademarks are owned by Largo Inc.
Non-GAAP 3 Measures
The Company uses certain non-GAAP measures in this 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. Management believes that non-GAAP financial measures, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company.
Revenues Per Pound Sold
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, which are non-GAAP financial measures that are used to provide investors with information about a key measure used by management to monitor performance of the Company.
These measures, along with cash operating costs, are considered to be 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 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 to revenues and the revenue information presented in note 19 as per the 2024 annual consolidated financial statements.
Three months ended | Year ended | |||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||
Revenues - V 2 O 5 produced i | $ | 10,271 | $ | 25,182 | $ | 57,446 | $ | 115,534 |
V 2 O 5 sold - produced (000s lb) | 2,053 | 3,215 | 9,332 | 13,113 | ||||
V 2 O 5 revenues per pound of V 2 O 5 sold - produced ($/lb) | $ | 5.00 | $ | 7.83 | $ | 6.16 | $ | 8.81 |
Revenues - V 2 O 5 purchased i | $ | — | $ | 1,497 | $ | 988 | $ | 9,028 |
V 2 O 5 sold - purchased (000s lb) | — | 265 | 176 | 1,279 | ||||
V 2 O 5 revenues per pound of V 2 O 5 sold - purchased ($/lb) | $ | — | $ | 5.65 | $ | 5.61 | $ | 7.06 |
Revenues - V 2 O 5 i | $ | 10,271 | $ | 26,679 | $ | 58,434 | $ | 124,562 |
V 2 O 5 sold (000s lb) | 2,053 | 3,480 | 9,508 | 14,392 | ||||
V 2 O 5 revenues per pound of V 2 O 5 sold ($/lb) | $ | 5.00 | $ | 7.67 | $ | 6.15 | $ | 8.65 |
Revenues - V 2 O 3 produced 1 | $ | 457 | $ | 6,213 | $ | 8,353 | $ | 13,788 |
V 2 O 3 sold - produced (000s lb) | 59 | 596 | 898 | 1,215 | ||||
V 2 O 3 revenues per pound of V 2 O 3 sold - produced ($/lb) | $ | 7.75 | $ | 10.42 | $ | 9.30 | $ | 11.35 |
Revenues - V 2 O 3 purchased i | $ | — | $ | — | $ | — | $ | 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 i | $ | 457 | $ | 6,213 | $ | 8,353 | $ | 14,943 |
V 2 O 3 sold (000s lb) | 59 | 596 | 898 | 1,303 | ||||
V 2 O 3 revenues per pound of V 2 O 3 sold ($/lb) | $ | 7.75 | $ | 10.42 | $ | 9.30 | $ | 11.47 |
Revenues - FeV produced i | $ | 12,212 | $ | 11,278 | $ | 46,890 | $ | 57,686 |
FeV sold - produced (000s kg) | 585 | 479 | 2,221 | 2,070 | ||||
FeV revenues per kg of FeV sold - produced ($/kg) | $ | 20.88 | $ | 23.54 | $ | 21.11 | $ | 27.87 |
Revenues - FeV purchased 1 | $ | 106 | $ | — | $ | 4,872 | $ | 1,386 |
FeV sold - purchased (000s kg) | 5 | — | 227 | 50 | ||||
FeV revenues per kg of FeV sold - purchased ($/kg) | $ | 21.20 | $ | — | $ | 21.46 | $ | 27.72 |
Revenues – FeV i | $ | 12,318 | $ | 11,278 | $ | 51,762 | $ | 59,072 |
FeV sold (000s kg) | 590 | 479 | 2,448 | 2,120 | ||||
FeV revenues per kg of FeV sold ($/kg) | $ | 20.88 | $ | 23.54 | $ | 21.14 | $ | 27.86 |
Revenues 1 | $ | 23,046 | $ | 44,170 | $ | 118,549 | $ | 198,577 |
V 2 O 5 equivalent sold (000s lb) | 4,041 | 5,743 | 18,519 | 22,920 | ||||
Revenues per pound sold ($/lb) | $ | 5.70 | $ | 7.69 | $ | 6.40 | $ | 8.66 |
Cash Operating Costs Excluding Royalties and Adjusted Cash Operating Costs Excluding Royalties
This press release refers to cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, which are non-GAAP ratios based on cash operating costs, cash operating costs excluding royalties and adjusted 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 its plan and prior periods, and to 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. Adjusted cash operating costs excluding royalties is calculated as cash operating costs excluding royalties less write-downs of produced products.
Cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound are obtained by dividing cash operating costs, cash operating costs excluding royalties and adjusted 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, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted 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, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound for the Maracás Menchen Mine to operating costs as per the 2024 annual consolidated financial statements.
Three months ended | Year ended | |||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||
Operating costs i | $ | 30,194 | $ | 43,218 | $ | 145,818 | $ | 174,758 | ||||
Professional, consulting and management fees ii | 474 | 887 | 1,875 | 3,102 | ||||||||
Other general and administrative expenses iii | (38 | ) | 718 | 898 | 1,750 | |||||||
Less: ilmenite costs and write-down i | (2,317 | ) | — | (8,192 | ) | — | ||||||
Less: iron ore costs i | (29 | ) | (84 | ) | (512 | ) | (722 | ) | ||||
Less: conversion costs i | (2,217 | ) | (1,768 | ) | (8,240 | ) | (7,319 | ) | ||||
Less: product acquisition costs i | (99 | ) | (1,974 | ) | (4,996 | ) | (15,354 | ) | ||||
Less: distribution costs i | (1,601 | ) | (2,366 | ) | (7,418 | ) | (8,540 | ) | ||||
Less: inventory write-down iv | 23 | (192 | ) | (238 | ) | (1,853 | ) | |||||
Less: depreciation and amortization expense i | (7,984 | ) | (6,592 | ) | (26,795 | ) | (26,048 | ) | ||||
Cash operating costs | $ | 16,406 | $ | 31,847 | $ | 92,200 | $ | 119,774 | ||||
Less: royalties i | (1,630 | ) | (2,243 | ) | (7,052 | ) | (9,162 | ) | ||||
Cash operating costs excluding royalties | $ | 14,776 | $ | 29,604 | $ | 85,148 | $ | 110,612 | ||||
Less: vanadium inventory write-down v | (2,517 | ) | (2,215 | ) | (13,897 | ) | (2,215 | ) | ||||
Adjusted cash operating costs excluding royalties | $ | 12,259 | $ | 27,389 | $ | 71,251 | $ | 108,397 | ||||
Produced V 2 O 5 sold (000s lb) | 4,024 | 5,437 | 17,603 | 20,871 | ||||||||
Cash operating costs per pound ($/lb) | $ | 4.08 | $ | 5.86 | $ | 5.24 | $ | 5.74 | ||||
Cash operating costs excluding royalties per pound ($/lb) | $ | 3.67 | $ | 5.44 | $ | 4.84 | $ | 5.30 | ||||
Adjusted cash operating costs excluding royalties per pound ($/lb) | $ | 3.05 | $ | 5.04 | $ | 4.05 | $ | 5.19 | ||||
EBITDA and Adjusted EBITDA
This 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 2024 annual consolidated financial statements.
Three months ended | Year ended | |||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||
Net loss | $ | (11,664 | ) | $ | (13,301 | ) | $ | (49,239 | ) | $ | (32,358 | ) |
Foreign exchange loss | 8,560 | (823 | ) | 12,517 | 183 | |||||||
Share-based payments | 138 | 231 | 1,321 | (362 | ) | |||||||
Finance costs | 2,360 | 4,096 | 9,460 | 9,630 | ||||||||
Interest income | (92 | ) | (280 | ) | (1,523 | ) | (2,018 | ) | ||||
Income tax (recovery) expense | 29 | 40 | (2,813 | ) | 88 | |||||||
Deferred income tax recovery | (7,651 | ) | (3,119 | ) | (19,193 | ) | (2,786 | ) | ||||
Depreciation i | 8,205 | 7,393 | 28,675 | 29,250 | ||||||||
EBITDA | $ | (115 | ) | $ | (5,763 | ) | $ | (20,795 | ) | $ | 1,627 | |
Inventory write-down ii | 5,627 | 2,407 | 18,475 | 4,068 | ||||||||
Write-down of vanadium assets | (78 | ) | 3,535 | 1,119 | 4,862 | |||||||
Write-down of mine properties, plant and equipment iii | — | — | 1,092 | — | ||||||||
Movement in legal provisions iv | (3,097 | ) | (85 | ) | (1,967 | ) | 692 | |||||
Adjusted EBITDA | $ | 2,337 | $ | 793 | $ | (2,076 | ) | $ | 11,948 | |||
Less: Clean Energy Adjusted EBITDA | 1,906 | 2,341 | 9,345 | 16,999 | ||||||||
Less: LPV Adjusted EBITDA | 223 | 369 | 707 | 1,045 | ||||||||
Mining Operations Adjusted EBITDA | $ | 4,466 | $ | 3,503 | $ | 7,976 | $ | 29,992 | ||||
Three months ended | Year ended | |||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||
Clean Energy | ||||||||||||
Net loss i | $ | (1,930 | ) | $ | (2,943 | ) | $ | (11,529 | ) | $ | (19,429 | ) |
Foreign exchange loss i | 9 | 5 | 27 | 36 | ||||||||
Finance costs i | 7 | 12 | 39 | 56 | ||||||||
Depreciation ii | 8 | 585 | 1,026 | 2,338 | ||||||||
Clean Energy EBITDA | $ | (1,906 | ) | $ | (2,341 | ) | $ | (10,437 | ) | $ | (16,999 | ) |
Write-down of mine properties, plant and equipment iii | — | — | 1,092 | — | ||||||||
Clean Energy Adjusted EBITDA | $ | (1,906 | ) | $ | (2,341 | ) | $ | (9,345 | ) | $ | (16,999 | ) |
Three months ended | Year ended | |||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||
LPV | ||||||||||||
Net loss 1 | $ | (194 | ) | $ | (3,930 | ) | $ | (1,927 | ) | $ | (5,969 | ) |
Foreign exchange loss 1 | 35 | 2 | 38 | (50 | ) | |||||||
Finance costs 1 | 19 | 24 | 81 | 112 | ||||||||
Interest income 1 | (5 | ) | — | (18 | ) | — | ||||||
LPV EBITDA | $ | (145 | ) | $ | (3,904 | ) | $ | (1,826 | ) | $ | (5,907 | ) |
Write-down of vanadium assets 1 | (78 | ) | 3,535 | 1,119 | 4,862 | |||||||
LPV Adjusted EBITDA | $ | (223 | ) | $ | (369 | ) | $ | (707 | ) | $ | (1,045 | ) |
____________________ |
2 Effective grade represents the percentage of magnetic material mined multiplied by the percentage of V 2 O 5 in the magnetic concentrate. |
3 GAAP – Generally Accepted Accounting Principles. |
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Alex Guthrie
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Largo Inc. (" Largo " or the " Company ") ( TSX: LGO ) ( NASDAQ: LGO ) today announces a leadership transition as part of its ongoing efforts to enhance operational performance and strengthen its production strategy. Largo has promoted and appointed Mr. Gordon Babcock and Mr. Luis Rendón as Co-Chief Operating Officers (" COO "). Both executives, who recently joined the Largo operations team in other capacities, bring extensive mining sector leadership and operational expertise to Largo and will carry on with implementing operational improvements at the Maracás Menchen Mine. These promotions and appointments follow the resignation of former COO, Celio Pereira for personal reasons.
Daniel Tellechea, Interim CEO of Largo, stated: "To ensure a smooth transition and maintain our focus on strengthening operational improvements in Brazil, we have appointed Gordon Babcock and Luis Rendón as Co-Chief Operating Officers. Both have been actively engaged in our efficiency initiatives and bring deep expertise in mine management, engineering, and production optimization. Their leadership will be instrumental in advancing our operational realignment as part of our broader turnaround strategy. These leadership changes are intended to support our focus on enhancing efficiency, improving cost control, and optimizing production at the Maracás Menchen Mine. We also extend our gratitude to Celio for his contributions and wish him the best in his future endeavors."
The Co-COO structure is intended to enhance oversight of the Company's operations, with each executive assuming responsibility for distinct operational areas to improve efficiencies.
Gordon Babcock is a mining professional with over 40 years of experience in mine operations, engineering, and project development. He has held senior leadership roles at multiple mining companies, including serving as COO at Sierra Metals and Jaguar Mining, where he played a key role in driving operational efficiency and production stability. At Nyrstar, he served as Vice President and General Manager, overseeing complex underground and open-pit mining operations. Gordon has also worked as an independent consultant, advising mining companies on mine planning, operational optimization, and cost reduction strategies. Gordon holds a Bachelor of Science in Mining Engineering from Queen's University and is a registered Professional Engineer.
Luis Rendón is a metallurgical engineer with over 40 years of experience in mineral processing, plant operations, and cost optimization. He has held senior leadership roles at Sierra Metals, Compañía Minera Kolpa, and Pan American Silver, where he managed plant expansions, implemented advanced metallurgical techniques, and optimized production processes to improve efficiency and cost control. At Largo, he has been instrumental in enhancing process performance and supporting operational realignment efforts at the Maracás Menchen Mine. Luis has also worked as an independent consultant, advising mining operations on production planning and metallurgical enhancements. Luis holds a degree in Metallurgical Engineering from Universidad Nacional de San Agustín (UNSA) in Arequipa, Peru.
About Largo
Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in Brazil. As one of the world's largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The Company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.
Largo is also strategically invested in the long-duration energy storage sector through its 50% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S.
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" 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; and the impact of global delays and related price increases on the Company's global supply chain and future sales of vanadium products.
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 products, ilmenite and titanium dioxide pigment; 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 reliability of production, including, without limitation, access to massive ore, 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; that the Company's current plans for ilmenite can be achieved; the Company's ability to protect and develop its technology; the Company's ability to maintain its IP; the competitiveness of the Company's product in an evolving market; the Company's ability to attract and retain skilled personnel and directors; the ability of management to execute strategic goals; that the Company will enter into agreements for the sales of vanadium, ilmenite and TiO2 products on favourable terms and for the sale of substantially all of its annual production capacity; and receipt of regulatory and governmental approvals, permits and renewals in a timely manner.
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", although not all forward-looking statements include those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Forward-looking statements are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances. Forward-looking statements are based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo 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.ca 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&A which also apply.
Trademarks are owned by Largo Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250218257166/en/
For further information, please contact:
Investor Relations
Alex Guthrie
Director, Investor Relations
+1.416.861.9778
aguthrie@largoinc.com
News Provided by Business Wire via QuoteMedia
