Largo Resources Posts C$316-million Net Income for 2018

Largo Resources (TSX:LGO,OTCQX:LGORF) has posted its 2018 full year highlights, including a net income of C$316.0 million. Largo also reports record production of 9,830 tonnes of V2O5, representing the strongest year of earnings and production for the company since the commencement of operations in 2014.

As quoted from the press release:

Q4 2018 Highlights

• Net income of C$108.0 million and basic earnings per share of C$0.21 in Q4 2018
• Revenues of C$177.5 million in Q4 2018, a 262 percent increase over Q4 2017 and a 19 percent increase over Q3 2018
• Cash provided before non-cash working capital items of C$134.4 million in Q4 2018, an increase of C$112.9 million over Q4 2017
• Record production of 2,595 tonnes of V2O5 in Q4 2018

Full Year 2018 Highlights

• Net income of C$316.0 million and basic earnings per share of C$0.61 in 2018
• Revenues of C$521.4 million in 2018, a 211 percent increase over 2017
• Cash provided before non-cash working capital items of C$403.2 million in 2018, an increase of C$336.1 million over 2017
• Cash operating costs excluding royalties of C$4.41 (US$3.38) in 2018
• C$206.2 million in cash exiting 2018
• Record production of 9,830 tonnes of V2O5 in 2018, exceeding midpoint guidance of 9,650 tonnes by 2 percent and a 6 percent increase over 2017
• Four consecutive quarters of production growth in 2018
• Expansion plan completion target of Q2 2019 with ramp up to follow in Q3 2019

Mark Smith, Chief Executive Officer for Largo, stated: “2018 was an outstanding year for Largo as it delivered extremely robust financial results with net income of C$316.0 million while also consecutively increasing quarterly production at the Maracás Menchen Mine allowing the company to exceed its production guidance midpoint by 2 percent.”

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