Advanced vanadium developer, Technology Metals Australia Limited (ASX: TMT) (Technology Metals or the Company), provides the following update on the proposed merger of TMT and Australian Vanadium Limited (AVL) via Scheme of Arrangement (Scheme), under which AVL will acquire 100% of the TMT shares on issue.
RESULTS OF SECOND COURT HEARING
TMT is pleased to announce that the Supreme Court of Western Australia (Court) has made orders approving the Scheme.
TMT intends to lodge an office copy of the Court’s orders with the Australian Securities and Investments Commission on Monday, 22 January 2024, at which time the Scheme will become legally effective. TMT expects that the ASX will suspend TMT shares from trading on the ASX with effect from the close of trading on Monday, 22 January 2024.
TIMETABLE AND NEXT STEPS
An indicative timetable is set out below:
* All stated dates and times are indicative only. The actual timetable will depend on many factors outside the control of TMT and AVL. Any changes to the above timetable will be announced to ASX and available under TMT’s profile at www.asx.com.au.
TMT will update its shareholders as to any material developments in relation to the Scheme as the timetable progresses.
If you require further information or have questions in relation to the Scheme, please contact the TMT Shareholder Information Line on 08 9321 8533 between 8:30 am and 5:00 pm (AWST).
Click here for the full ASX Release
This article includes content from Australian Vanadium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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.
REGISTER NOW AT : https://bit.ly/3S1V1yg
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 .
About Virtual Investor Conferences ®
Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly traded companies to seamlessly present directly to investors.
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.
Media Contact:
OTC Markets Group Inc. +1 (212) 896-4428, media@otcmarkets.com
Virtual Investor Conferences Contact:
John M. Viglotti
SVP Corporate Services, Investor Access
OTC Markets Group
(212) 220-2221
johnv@otcmarkets.com
News Provided by GlobeNewswire via QuoteMedia
Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) today announces that the Company has received approval from the Toronto Stock Exchange (" TSX ") to extend its Annual General Meeting of Shareholders (the " Meeting ") to Monday, July 29, 2024, at 10:00 a.m. ET. The Meeting will be held at the offices of Stikeman Elliott LLP, 5300 Commerce Court West, 199 Bay Street, Toronto, Ontario, M5L 1B9, Canada. Without TSX approval, the Company's annual meeting must be held by June 30 each year.
The Meeting is being held for the following purposes:
The Company is using notice and access to deliver Meeting materials to its registered shareholders and beneficial owners. This allows the Company to post its 2024 Management Information Circular, audited consolidated financial statements for the year ended December 31, 2023 and other related materials online instead of mailing the documents. The Notice of Meeting, accompanying 2024 Management Information Circular and related Meeting materials will also be filed on the Company's profile on SEDAR+ at www.sedarplus.com , on www.sec.gov , as well as on the Company's website at www.largoinc.com .
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/20240603722368/en/
For further information, please contact:
Investor Relations
Alex Guthrie
Senior Manager, External Relations
+1.416.861.9778
aguthrie@largoinc.com
News Provided by Business Wire via QuoteMedia
KEY POINTS
CEO, Graham Arvidson commented, “AVL is extremely grateful to have been supported by the Australian Government to build and bring our vanadium electrolyte manufacturing facility into operation, particularly at this pivotal time of transforming Australia into a renewable energy superpower. Having this production facility in Western Australia forms part of the Company’s ‘pit to battery’ strategy, which also comprises mining and processing of vanadium in the State and further downstream activities in the vanadium flow battery market. In addition, we have been able to produce ultra-high purity vanadium products and begin development of a residential vanadium flow battery prototype and stand-alone power system.”
The grant was awarded as matched funding, mainly to support the design and construction of the Company’s vanadium electrolyte manufacturing facility, which has successfully produced its first high purity vanadium electrolyte.3
Vanadium electrolyte is a key component of vanadium flow batteries (VFBs). These batteries are well suited to large-scale energy storage applications, as required for electrical grids. They offer a high capacity for energy storage and a long cycle life, having the ability to be charged and discharged repeatedly with minimal degradation over the extremely long battery life.
The electrolyte manufacturing facility was officially opened in January 2024 by the Federal Resources Minister, the Hon. Madeleine King MP.
The grant funding also provided for the inclusion of the design of an ultra-high purity processing circuit to produce chemical and master-alloy grade vanadium pentoxide as part of the development of the Australian Vanadium Project. The Company recently announced the achievement of ultra-high purity 99.9% V2O5 through testwork undertaken with Australia’s Nuclear Science and Technology Organisation (ANSTO).4
Figure 1 – Residential VFB prototype pictured at the vanadium electrolyte manufacturing facility
The grant also part-funded the Company’s development of a prototype residential VFB and stand- alone power system based on a VFB, for the Australian energy market. The prototype residential VFB has been designed with 5kW of power and 15kWh of stored energy capacity. With the battery’s characteristics of flexibility, minimal degradation in performance over a 25-year lifespan and non- flammability, it has the potential to be a highly desirable product for homeowners looking for an alternative to a lithium-ion battery solution. Development of the prototype continues and is expected to be installed at a residential property in due course for further testing by AVL’s 100% owned VFB- focused subsidiary VSUN Energy.
Click here for the full ASX Release
This article includes content from Australian Vanadium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Q1 2024 and Other Highlights
Vanadium Market Update iv
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 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240515289077/en/
For further information:
Investor Relations
Alex Guthrie
Senior Manager, External Relations
+1.416.861.9778
aguthrie@largoinc.com
News Provided by Business Wire via QuoteMedia
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
News Provided by Business Wire via QuoteMedia
