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All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Q1 2025 and Other Highlights
Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL”) is pleased to announce progress on the work being undertaken by the Company to integrate the two adjoining projects located across one orebody, following the successful completion of its merger with Technology Metals Australia (TMT).1
KEY POINTS
- Following the recent merger, metallurgical testwork confirms the trend of higher vanadium and iron concentrate grades towards the south of the combined project and supports further investigation of a commercial scale ilmenite product.
- Vanadium concentrate grades for Block 70 average up to 1.6% V2O5, consistent with the results from the Yarrabubba deposit (Block 80).
- Higher iron grade in concentrate averages greater than 60% for Block 70.
- Results suggest a high-grade project can be optimised across an unconstrained southern strike extent, with potential for increased economic benefits.
Prior to the merger, TMT owned tenements at the northern end of the orebody and a small block at the southern end of the orebody, known as the Yarrabubba deposit. The Yarrabubba deposit was entirely surrounded by AVL’s tenements, significantly constraining development by TMT (see Figure 1 below).2
As part of the Optimised Feasibility Study (OFS) being conducted by AVL to inform the preferred project development pathway for the integrated project,1 work has progressed to maximise the possible economic return through access to the high-grade southern area of the orebody, which previously straddled the two projects. This work has included metallurgical testwork on parts of the orebody adjoining the Yarrabubba deposit.
CEO, Graham Arvidson comments, “This testwork bolsters our view that a long-life, high-grade integrated project at the southern areas of the combined project can be defined quickly based on historical work by removing the constraints from TMT’s previously landlocked Yarrabubba deposit and adding to it similar mineralisation within the historical AVL deposit. The team will use this testwork within the broader integration studies, with the aim of improving the economics of the project via reduced capital and operating costs. This has the potential to deliver a material increase in value for our shareholders.”
Figure 1 – Location map showing blocks of AVL’s deposit
The combined project on one orebody is broken by several regional scale faults which split the deposit into a series of blocks. The Yarrabubba deposit has now become Block 80 of AVL’s combined deposit and abuts AVL’s Block 70 deposit (see Figure 1 above).
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AVL:AU
Largo Reports Q1 2025 Financial Results with Continued Focus on Production Stability and Cost Reduction Efforts
- Revenues of $28.2 million in Q1 2025 vs. 42.2 million in Q1 2024; Revenues per pound sold 1 of $6.04 in Q1 2025 vs. $6.91 in Q1 2024; Lower revenues are a result of continued downward pressure in vanadium prices and lower sales volumes
- Operating costs of $42.5 million in Q1 2025, 15% below Q1 2024
- Adjusted cash operating costs excluding royalties per pound 1 of $3.88 in Q1 2025, 27% below Q1 2024, despite mining lower ore grades and decreased production rates
- Net loss of $9.2 million in Q1 2025, which included $7.0 million in non-recurring items vs. a net loss of $13.0 million in Q1 2024, which included $4.4 million in non-recurring items
- Basic loss per share of $0.14 in Q1 2025 vs. basic loss per share of $0.20 in Q1 2024
- V 2 O 5 equivalent sales of 2,046 tonnes (inclusive of 158 tonnes of purchased material) in Q1 2025 vs. 2,765 equivalent tonnes sold (inclusive of 156 tonnes of purchased material) in Q1 2024
- V 2 O 5 production of 1,297 tonnes (2.8 million lbs 2 ) in Q1 2025 vs. 1,729 tonnes produced in Q1 2024; Lower production in Q1 2025 was primarily due to impacts from mining lower-grade ore zones required as part the Company's open pit mine sequencing, reduced equipment availability on an expanded mine contractor fleet, and operational adjustments related to the kiln refractory replacement completed in Q4 2024, which required additional adjustments in early 2025
- The Company produced 6,162 tonnes of ilmenite concentrate in Q1 2025 vs. 9,563 tonnes in Q1 2024, and sold 8,647 tonnes vs. 513 tonnes in Q1 2024
- The Company maintains its revised 2025 production, sales and cost guidance and expects a return to more normalized production levels over the remainder of the year as throughput increases and operational turnaround initiatives progress
Vanadium Market Update
- Vanadium markets in Europe and China remain weak, pressured by low steel and infrastructure demand and oversupply from Chinese and Russian producers, though aerospace demand is expected to pick up in the second half of 2025
- U.S. ferrovanadium ("FeV") prices are holding at levels approximately 9% higher than at the start of 2025, supported by increased buying interest amid geopolitical tensions and policy shifts that have tightened supply dynamics
- The average benchmark price per pound of V 2 O 5 in Europe was $5.26 in Q1 2025, a 18% decrease from the average of $6.44 seen in Q1 2024; The average benchmark price per kg of FeV in Europe was $24.26 in Q1 2025, a 13% decrease from the average of $27.96 seen in Q1 2024
- As of May 8, 2025, the average benchmark FeV price per pound of V was $15.25 in the U.S. (or approximately $33.62 per kg FeV), and as of May 9, 2025, the average benchmark price per pound of V₂O₅ was $5.20 in Europe
Largo Inc. (" Largo " or the " Company ") ( TSX: LGO ) ( NASDAQ: LGO ) today released financial results for the three months ended March 31, 2025. The Company reported quarterly vanadium pentoxide (" V 2 O 5 ") equivalent sales of 2,046 tonnes at an adjusted cash operating cost excluding royalties per pound 1 sold of $3.88.
Daniel Tellechea, Interim CEO and Director of Largo, stated: "Our first quarter results reflect the impact of lower production levels, which constrained sales volumes, combined with continued pricing pressure in the vanadium market, all of which significantly affected our revenues and added pressure to our cash position. Despite this environment, Largo achieved a 15% reduction in overall operating costs compared to Q1 2024 as well as a 27% reduction in our adjusted cash operating costs excluding royalties 1 , reflecting a continued focus on cost-control initiatives and operational efficiency improvements. We continue to actively advance our operational turnaround plan, implementing targeted initiatives aimed at further reducing costs and improving productivity at our Maracás Menchen Mine."
He continued: "Following the completion of our Storion Energy joint venture transaction, Largo is better positioned to allocate resources and focus on strengthening core mining operations in Brazil, while maintaining a long-term view on the potential of long duration energy storage solutions in the U.S. Looking ahead, securing near-term financing solutions remains a priority as we work to support our liquidity needs and ensure Largo is positioned to navigate ongoing market uncertainty."
Financial and Operating Results – Highlights
Financial figures expressed in thousands of U.S. dollars, except as otherwise stated | Three months ended | |
Mar. 31, 2025 | Mar. 31, 2024 | |
Revenues | 28,235 | 42,187 |
Operating costs | (42,477) | (49,707) |
Net loss | (9,205) | (13,006) |
Basic earnings (loss) per share | (0.14) | (0.20) |
Adjusted EBITDA 1 | (2,774) | (2,425) |
Mining operations adjusted EBITDA 1 | (697) | 250 |
Cash used before working capital items (operating activities) | (8,492) | (3,188) |
Cash operating costs excl. royalties 1 ($/lb) | 6.54 | 6.12 |
Adjusted cash operating costs excl. royalties 1 ($/lb) | 3.88 | 5.33 |
Cash | 8,445 | 45,656 |
Debt | 92,115 | 75,000 |
Total mined – dry basis (tonnes) | 3,933,242 | 3,243,492 |
Total ore mined (tonnes) | 446,614 | 604,231 |
Effective grade 3 of ore milled (%) | 0.53 | 0.82 |
V 2 O 5 equivalent production (tonnes) | 1,297 | 1,729 |
V 2 O 5 equivalent sales (tonnes) | 2,046 | 2,765 |
Ilmenite concentrate sales (tonnes) | 8,647 | 513 |
Key Highlights
- During Q1 2025, the Company recognized revenues of $27.5 million (Q1 2024 – $42.2 million) from the sales of 2,046 tonnes of V 2 O 5 equivalent (Q1 2024 – 2,765 tonnes) as well as revenues from ilmenite sales of $0.7 million (Q1 2024 - $0.07 million).
- The Company recorded a net loss of $9.2 million in Q1 2025 compared with a net loss of $13.0 million in Q1 2024. The improvement was primarily due to the gain on disposal of interest in subsidiary of $5.2 million and a 15% decrease in operating costs.
- The Company's operating costs decreased by 15% to $42.5 million in Q1 2025 compared to 49.7 million in Q1 2024. The decrease in operating costs in Q1 2025 was largely driven by a 48% decrease in direct mine and production costs, reflecting a 25% decrease in vanadium sold in 2024, as well as the impact of the Company's previously announced initiatives to reduce production costs and improve productivity and the impact of inventory write-downs in the current and prior periods. The inventory write-down in Q1 2025 includes a write-down of produced vanadium finished products of $11.2 million and a write-down reversal of warehouse materials of $0.1 million.
- Cash operating costs excluding royalties per pound 1 were $6.54 per lb in Q1 2025, compared with $6.12 for Q1 2024. The increase seen in Q1 2025 compared with Q1 2024 is largely due lower sales volumes of in Q1 2025 and increased inventory write-downs. Mining in lower grade ore zones also impacted the financial performance. Additionally, lower ore mined resulted in stoppages at the kiln and plant which also contributed to increased costs in Q1 2025. The Company continues to make progress with a number of initiatives as part of its operational turnaround plan with the goal of reducing production costs and improving productivity ( see press release dated March 28, 2025 ).
- Adjusted cash operating costs excluding royalties per pound 1 , which excludes the impact of inventory write-downs was $3.88 per lb sold in Q1 2025, compared with $5.33 for Q1 2024.
- Professional, consulting and management fees, other general and administrative expenses, and technology start-up costs in Q1 2025 decreased by 18%, 37%, and 82%, respectively, compared to Q1 2024, primarily due to reduced headcount and activity at LCE.
- On January 31, 2025 (the " Closing Date "), the Company and affiliates of Stryten Energy LLC closed the previously disclosed transaction to establish Storion Energy LLC (" Storion "). Storion has commenced operations and is working to qualify their electrolyte product with potential customers. In addition, 13 employees of Largo Clean Energy Corp. (" LCE ") moved to Storion on the Closing Date, resulting in a reduced headcount at LCE at the end of Q1 2025.
- Subsequent to Q1 2025, production and sales in were 481 tonnes and 608 tonnes of V 2 O 5 equivalent, respectively, in April 2025, with 1,833 tonnes of ilmenite concentrate being produced during this period and 1,914 dry tonnes of ilmenite being sold.
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, 2025 and 2024 and its management's discussion and analysis for the three months ended March 31, 2025 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 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 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. Management believes that non-IFRS 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
The Company's 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 23 as per the Q1 2025 unaudited condensed interim consolidated financial statements.
Three months ended | ||||
March 31, 2025 | March 31, 2024 | |||
Revenues - V 2 O 5 produced i | $ | 12,133 | $ | 21,558 |
V 2 O 5 sold - produced (000s lb) | 2,119 | 3,113 | ||
V 2 O 5 revenues per pound of V 2 O 5 sold - produced ($/lb) | $ | 5.73 | $ | 6.93 |
Revenues - V 2 O 5 purchased i | $ | — | $ | 988 |
V 2 O 5 sold - purchased (000s lb) | — | 176 | ||
V 2 O 5 revenues per pound of V 2 O 5 sold - purchased ($/lb) | $ | — | $ | 5.61 |
Revenues - V 2 O 5 i | $ | 12,133 | $ | 22,546 |
V 2 O 5 sold (000s lb) | 2,119 | 3,289 | ||
V 2 O 5 revenues per pound of V 2 O 5 sold ($/lb) | $ | 5.73 | $ | 6.85 |
Revenues - V 2 O 3 produced i | $ | 1,296 | $ | 6,203 |
V 2 O 3 sold - produced (000s lb) | 165 | 668 | ||
V 2 O 3 revenues per pound of V 2 O 3 sold - produced ($/lb) | $ | 7.85 | $ | 9.29 |
Revenues - FeV produced 1 | $ | 11,712 | $ | 12,249 |
FeV sold - produced (000s kg) | 574 | 569 | ||
FeV revenues per kg of FeV sold - produced ($/kg) | $ | 20.40 | $ | 21.53 |
Revenues - FeV purchased 1 | $ | 2,356 | $ | 1,120 |
FeV sold - purchased (000s kg) | 105 | 51 | ||
FeV revenues per kg of FeV sold - purchased ($/kg) | $ | 22.44 | $ | 21.96 |
Revenues – FeV i | $ | 14,068 | $ | 13,369 |
FeV sold (000s kg) | 679 | 620 | ||
FeV revenues per kg of FeV sold ($/kg) | $ | 20.72 | $ | 21.56 |
Revenues 1 | $ | 27,497 | $ | 42,118 |
V 2 O 5 equivalent sold (000s lb) | 4,555 | 6,096 | ||
Revenues per pound sold ($/lb) | $ | 6.04 | $ | 6.91 |
- Year ended as per note 19 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements.
Cash Operating Costs Excluding Royalties Per Pound
The Company's press release refers to cash operating costs per pound, 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 Q1 2025 unaudited condensed interim consolidated financial statements.
Three months ended | ||||||
March 31, 2025 | March 31, 2024 | |||||
Operating costs i | $ | 42,477 | $ | 49,707 | ||
Professional, consulting and management fees ii | 535 | 462 | ||||
Other general and administrative expenses iii | 179 | 279 | ||||
Less: ilmenite costs and write-down i | (2,220 | ) | (47 | ) | ||
Less: conversion costs i | (2,991 | ) | (2,023 | ) | ||
Less: product acquisition costs i | (2,357 | ) | (2,050 | ) | ||
Less: distribution costs i | (1,577 | ) | (1,818 | ) | ||
Less: inventory write-down iv | 1 | 446 | ||||
Less: depreciation and amortization expense i | (5,462 | ) | (8,077 | ) | ||
Cash operating costs | $ | 28,585 | $ | 36,879 | ||
Less: royalties 1 | (1,072 | ) | (1,673 | ) | ||
Cash operating costs excluding royalties | $ | 27,513 | $ | 35,206 | ||
Less: vanadium inventory write-down v | (11,206 | ) | (4,526 | ) | ||
Adjusted cash operating costs excluding royalties | 16,307 | 30,680 | ||||
Produced V 2 O 5 sold (000s lb) | 4,206 | 5,753 | ||||
Cash operating costs per pound ($/lb) | $ | 6.80 | $ | 6.41 | ||
Cash operating costs excluding royalties per pound ($/lb) | $ | 6.54 | $ | 6.12 | ||
Adjusted cash operating costs excluding royalties per pound ($/lb) | $ | 3.88 | $ | 5.33 | ||
- As per note 20 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements.
- As per the Mine properties segment in note 16 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements.
- As per the Mine properties segment in note 16 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements less the increase in legal provisions of $347 (for Q1 2025) as noted in the "other general and administrative expenses" section on page 6 of the Company's Q1 2025 MD&A.
- As per note 5 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements for ilmenite finished products and warehouse supplies, and including a write-down of vanadium purchased products of $10 for the three months ended March 31, 2025 ($nil in the same prior year period).
- As per note 5 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements for vanadium finished products, excluding amounts in note 4 above for vanadium purchased products.
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 2025 unaudited condensed interim consolidated financial statements.
Three months ended | ||||||
March 31, 2025 | March 31, 2024 | |||||
Net loss | $ | (9,205 | ) | $ | (13,006 | ) |
Foreign exchange gain (loss) | (5,791 | ) | 911 | |||
Share-based payments | 110 | 290 | ||||
Finance costs | 2,151 | 1,812 | ||||
Interest income | (121 | ) | (306 | ) | ||
Income tax expense | 50 | 22 | ||||
Deferred income tax recovery | (2,666 | ) | (5,329 | ) | ||
Depreciation i | 5,683 | 8,724 | ||||
EBITDA | $ | (9,789 | ) | $ | (6,882 | ) |
Inventory write-down ii | 11,580 | 4,080 | ||||
Write-down of vanadium assets | 267 | (114 | ) | |||
Movement in legal provisions iii | 347 | 491 | ||||
Gain on disposal of interest in subsidiary | (5,179 | ) | — | |||
Adjusted EBITDA | $ | (2,774 | ) | $ | (2,425 | ) |
Less: Clean Energy Adjusted EBITDA | 1,778 | 2,484 | ||||
Less: LPV Adjusted EBITDA | 299 | 191 | ||||
Mining Operations Adjusted EBITDA | $ | (697 | ) | $ | 250 | |
- As per the consolidated statements of cash flows in the Company's Q1 2025 unaudited condensed interim consolidated financial statements.
- As per note 5 of the Company's Q1 2025 unaudited condensed interim consolidated financial statements.
- As per then "non-recurring items" section on page 7 of the Company's Q1 2025 MD&A.
______________________________________
1 Revenues per pound sold, Adjusted EBITDA, Mining operations adjusted EBITDA, adjusted cash operating costs excluding royalties and cash operating costs excluding royalties 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 Conversion of tonnes to pounds, 1 tonne = 2,204.62 pounds or lbs.
3 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/20250514691044/en/
For further information, please contact:
Investor Relations
Alex Guthrie
Director, Investor Relations
+1.416.861.9778
aguthrie@largoinc.com
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Largo Announces Results of its Annual General Meeting of Shareholders
Largo Inc. (" Largo " or the " Company ") ( TSX: LGO ) ( NASDAQ: LGO ) announces voting results from its Annual General Meeting of Shareholders (the " Meeting ") held on Monday, May 12, 2025.
A total of 45,626,173 common shares of the Company were voted at the Meeting, representing 71.17% of the Company's issued and outstanding common shares. Shareholders voted to approve all matters brought before the Meeting, including the election of all director nominees and the appointment of KPMG LLP as the Company's auditors for the ensuing year.
Largo's Board of Directors wishes to thank its shareholders for their continued support. Detailed results of the votes on the election of directors are as follows:
Name of Director Nominee | Shares Voted For | % | Shares Withheld | % |
Alberto Arias | 31,061,877 | 83.27% | 6,242,148 | 16.73% |
David Brace | 36,620,985 | 98.17% | 683,040 | 1.83% |
Jonathan Lee | 35,650,102 | 95.57% | 1,653,923 | 4.43% |
Daniel Tellechea | 36,605,044 | 98.13% | 698,981 | 1.87% |
Andrea Weinberg | 35,649,578 | 95.56% | 1,654,447 | 4.43% |
For further detailed voting results on the Meeting, please refer to the Company's Report of Voting Results filed on SEDAR+ at www.sedarplus.com and on www.sec.gov .
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 .
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Investor Relations
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Largo Reports Q1 2025 Production and Sales Results; Provides Update on Operational Turnaround Plans
All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Q1 2025 Highlights
- V 2 O 5 production of 1,297 tonnes (2.8 million lbs 1 ) in Q1 2025 vs. 1,729 tonnes produced in Q1 2024
- Total waste moved (dry basis) was 3.5 million tonnes in Q1 2025, a 32% increase over Q1 2024 and total mined material (dry basis) was 3.9 million tonnes in Q1 2025, a 21% increase over Q1 2024 as the Company prioritizes the optimization of pit access, including critical stripping activities and mine pushbacks as part of its previously announced operational turnaround plans
- V 2 O 5 equivalent sales of 2,046 tonnes (inclusive of 154 tonnes of purchased material) in Q1 2025 vs. 2,765 equivalent tonnes sold (inclusive of 156 tonnes of purchased material) in Q1 2024
- Ilmenite concentrate production of 6,162 tonnes in Q1 2025 vs. 9,563 tonnes Q1 2024 with sales totaling 8,647 tonnes vs. 513 tonnes in Q1 2024
- The Company has revised its 2025 V 2 O 5 equivalent production and sales guidance ranges to 8,500 - 10,500 tonnes from 9,500 - 11,500 tonnes and 6,500 – 8,500 tonnes from 7,500 – 9,500 tonnes, respectively; Cash operating cost excluding royalties 2 guidance maintained; Ilmenite production and sales guidance maintained
Largo Inc. (" Largo " or the " Company ") ( TSX: LGO ) ( NASDAQ: LGO ) today announces quarterly production of 1,297 tonnes of vanadium pentoxide (" V 2 O 5 ") equivalent and sales of 2,046 tonnes V 2 O 5 equivalent in Q1 2025.
Daniel Tellechea, Interim CEO of Largo stated: " Production in the first quarter was lower than anticipated, primarily due to impacts from mining lower-grade ore zones, reduced equipment availability, and operational adjustments related to the kiln refractory replacement completed in Q4 2024. We anticipate continued short-term impacts to production as we prioritize essential mine pushbacks and stripping activities aimed at accessing higher-grade ore later this year as part of the Company's previously announced operational turnaround plans. As a result of these impacts, the timing of sales deliveries, which depend on prior-quarter production output—will be affected in Q2 2025 and in the second half of 2025. Accordingly, we have updated our annual production and sales guidance to reflect these short-term operational impacts. Encouragingly, we are seeing improved progress recently, with total mined material and total waste moved increasing 21% and 32% year-over-year, respectively. Successfully executing this turnaround remains our top priority, and we are committed as a team to delivering improved performance going forward."
Maracás Menchen Mine Operational and Sales Results
Q1 2025 | Q1 2024 | |||
Total Mined – Dry Basis (tonnes) | 3,933,242 | 3,243,492 | ||
Total Waste Moved – Dry Basis (tonnes) | 3,486,628 | 2,639,261 | ||
Total Ore Mined (tonnes) | 446,614 | 604,231 | ||
Ore Grade Mined - Effective Grade (%) 3 | 0.41 | 0.53 | ||
Concentrate Produced (tonnes) | 53,245 | 74,986 | ||
Grade of Concentrate (%) | 2.86 | 2.90 | ||
Global Recovery (%) 4 | 77.8 | 70.5 | ||
V 2 O 5 produced (Flake + Powder) (tonnes) | 1,297 | 1,729 | ||
V 2 O 5 produced (equivalent pounds) 1 | 2,852,778 | 3,811,788 | ||
Total V 2 O 5 equivalent sold (tonnes) | 2,046 | 2,765 | ||
Produced V 2 O 5 equivalent sold (tonnes) | 1,892 | 2,609 | ||
Purchased V 2 O 5 equivalent sold (tonnes) | 154 | 156 | ||
Ilmenite concentrate produced (tonnes) | 6,162 | 9,563 | ||
Ilmenite concentrate sold (tonnes) | 8,647 | 513 |
Q1 2025 Production and Sales Overview
- V 2 O 5 production totaled 1,297 tonnes in Q1 2025, with monthly production of 392 tonnes in January, 503 tonnes in February, and 402 tonnes in March. Production was impacted by the mining of lower-grade ore zones, reduced equipment availability, and operational adjustments following the kiln refractory replacement completed in Q4 2024. Despite these impacts, global recoveries 4 averaged 77.8% in Q1 2025, representing a notable improvement over 70.5% in Q1 2024 and remaining consistent with the 77.9% achieved in Q4 2024.
- As part of its operational turnaround plans, the Company ramped up total mined material by 21% year-over-year to 3.93 million tonnes (dry basis), while mined ore totaled 446,614 tonnes at an effective V 2 O 5 grade 3 of 0.41%, compared to 604,231 tonnes at 0.53% in Q1 2024. Total wasted moved increased by 32% in Q1 2025 to 3.5 million tonnes, as compared to 2.6 million tonnes in Q1 2024.
- V 2 O 5 equivalent sales totaled 2,046 tonnes in Q1 2025, including 154 tonnes of purchased material. While this represents a 26% decrease from the 2,765 tonnes sold in Q1 2024, it exceeded the upper end of the Company's quarterly guidance.
Revised 2025 V 2 O 5 Equivalent Production and Sales Guidance
In Q1 2025, the Company continued executing its previously announced operational turnaround plans ( see press release dated March 28, 2025 ). Over the coming months, the Company will prioritize critical mine stripping activities and pushbacks at the Maracás Menchen Mine, essential steps for accessing higher-grade ore zones required for steady production in the second half of the year. As a result of these measures, short-term production will be temporarily impacted, subsequently affecting the timing of sales commitments and deliveries in Q2 2025 as well as in the second half of 2025. The Company has updated its annual guidance for V 2 O 5 equivalent production and sales to reflect these anticipated impacts, as detailed in the table below. The Company has maintained its annual cost guidance range for 2025 but does expect unit costs above annual guidance in Q2 2025. Annual production and sales guidance for ilmenite has been maintained for 2025.
Previous 2025 | Revised 2025 | |||
Low | High | Low | High | |
Production (tonnes) | 9,500 | 11,500 | 8,500 | 10,500 |
Sales (tonnes) i | 7,500 | 9,500 | 6,500 | 8,500 |
| i. | The annual 2025 sales guidance does not include purchased material, or any sold material related to the Company's previously announced vanadium inventory supply agreement. | |
Cash Operating Costs Excluding Royalties Guidance – Maintained
2025 | ||
Low | High | |
Adjusted cash operating costs excluding royalties ($ / lb V 2 O 5 sold) 2 | 4.50 | 5.50 |
Ilmenite Concentrate Production and Sales Guidance – Maintained
2025 | ||
Low | High | |
Production (tonnes) | 25,000 | 35,000 |
Sales (tonnes) | 20,000 | 30,000 |
Liquidity and Financial Position
The Company continues to be actively engaged in negotiations for new working capital facilities and the refinancing of its long-term debt facilities to support its current and future financial position. These efforts are ongoing with the goal of improving liquidity and capital resources amid current vanadium market conditions and near-term operational and sales challenges. In parallel, the Company continues to assess additional measures to manage its costs and optimize cash flows as it works to stabilize operations as outlined in its operational turnaround plans. For further information, see disclosure under the heading "Liquidity and Capital Resources" in the Company's Management's Discussion and Analysis for the Year Ended December 31, 2024. The Company will provide further updates as appropriate.
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.
Future Oriented Financial Information:
Any financial outlook or future oriented financial information contained in this press release, as such term is defined by applicable securities laws, has been approved by management of Largo as of the date hereof and is provided for the purpose of providing information about management's current expectations and plans relating to the Company's 2024 guidance. Readers are cautioned that any such future oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein. The Company and its management believe that the prospective financial information as to the Company's anticipated 2024 guidance has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.
Non-GAAP 5 Measures
The Company uses certain non-GAAP financial performance measures in this press release, which are described in the following section.
Adjusted Cash Operating Costs Excluding Royalties
The Company's press release refers to adjusted cash operating costs excluding royalties per pound, which are non-GAAP ratios based on cash operating costs, 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.
| ________________________ | ||
| 1 | Conversion of tonnes to pounds, 1 tonne = 2,204.62 pounds or lbs. | |
| 2 | Adjusted cash operating costs per pound excluding royalties is a non-GAAP ratio 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. | |
| 3 | Effective grade represents the percentage of magnetic material mined multiplied by the percentage of V2O5 in the magnetic concentrate. | |
| 4 | Global recovery is the product of crushing recovery, milling recovery, kiln recovery, leaching recovery and chemical plant recovery. | |
| 5 | GAAP – Generally Accepted Accounting Principles | |
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For further information, please contact:
Investor Relations
Alex Guthrie
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+1.416.861.9778
aguthrie@largoinc.com
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Largo Reports Q4 and Full Year 2024 Financial Results; Announces Operational Turnaround Plan and Additional Cost Optimization Initiatives
All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Q4, Full Year 2024 and Other Highlights
- Revenues of $24.3 million in Q4 2024 vs. $44.2 million in Q4 2023; Revenues per pound sold 1 of $5.70 in Q4 2024 vs. $7.69 in Q4 2023; In addition, the Company received $13.6 million related to the delivery of 1,200 tonnes as part of its vanadium inventory supply agreement
- Operating costs of $30.2 million in Q4 2024, 30% below Q4 2023; Adjusted cash operating costs excluding royalties per pound 1 of $3.05 in Q4 2024, 39% below Q4 2023, reflecting the success in cost reduction measures throughout 2024
- Adjusted EBITDA 1 improved by 195% in Q4 2024 to $2.3 million and mining operations adjusted EBITDA 1 improved by 27% to $4.5 million from $3.5 million in Q4 2023, despite the negative impact of the maintenance shutdown in Q4 2024
- Net loss of $13.0 million in Q4 2024, which included $2.4 million in non-recurring items vs. net loss of $13.3 million in Q4 2023, which included $5.9 million in non-recurring items; Basic loss per share of $0.19 in Q4 2024 vs. basic loss per share of $0.21 in Q4 2023
- Revenues of $124.9 million in 2024, 37% below 2023; Revenues per pound sold 1 of $6.40 in 2024 vs. $8.66 in 2023; In addition, the Company received $13.6 million related to the delivery of 1,200 tonnes as part of its vanadium inventory supply agreement
- Operating costs of $145.8 million in 2024, 17% below 2023; Adjusted cash operating costs excluding royalties per pound 1 of $4.05 in 2024, 22% lower than 2023, reflecting the company's cost reduction efforts throughout 2024
- Adjusted EBITDA¹ was a loss of $2.1 million compared to positive adjusted EBITDA 1 of $11.9 million in 2023
- Net loss of $50.6 million in 2024, which included $18.7 million in non-recurring items vs. net loss of $32.4 million in 2023, which included $9.6 million in non-recurring items; Basic loss per share of $0.78 in 2024 vs. basic loss per share of $0.51 in 2023
- V 2 O 5 production of 1,775 tonnes in Q4 2024 vs. 2,768 tonnes in Q4 2023; Annual V 2 O 5 production of 9,264 tonnes in 2024 vs. 9,681 tonnes in 2023; Within the Company's revised 2024 production guidance range of 9,000 – 11,000 tonnes
- Annual and Q4 2024 production was impacted by two kiln maintenance shutdowns during the year—one in Q1 2024 as per the Company's regular schedule, and another advanced from Q1 2025 into Q4 2024 to mitigate potential production disruptions typically associated with the early-year rainy season
- Quarterly sales of 3,033 tonnes of V 2 O 5 equivalent (inclusive of 8 tonnes of purchased material and 1,200 tonnes related to the Company's vanadium inventory supply agreement) in Q4 2024, a 16% increase over the 2,605 tonnes in sold Q4 2023
- Annual V 2 O 5 equivalent sales of 9,600 (inclusive of 415 tonnes of purchased material and 1,200 tonnes related to its vanadium inventory supply agreement) tonnes in 2024 vs. 10,396 tonnes in 2023; Within the Company's annual 2024 sales guidance of 8,700 – 10,700 tonnes
- The Company produced 10,292 tonnes of ilmenite concentrate in Q4 2024 and 44,863 tonnes in 2024; Quarterly ilmenite concentrate sold of 10,570 tonnes in Q4 2024 and 42,916 tonnes sold in 2024
Vanadium Market Update
- Vanadium prices continued to face downward pressure in European and Chinese markets, primarily driven by reduced demand from the steel and infrastructure sectors and persistent oversupply from Chinese and Russian producers; In Q4 2024, the average benchmark price for V₂O₅ in Europe was $5.34 per pound, representing a 17% decrease compared to Q4 2023
- U.S. ferrovanadium pricing has experienced recent improvements, with prices rising 9% since the start of 2025, primarily driven by buying interest amid recent geopolitical developments and policy shifts impacting supply dynamics
- As of March 20, 2025, the average benchmark ferrovanadium price per pound of V was $15.25 in the U.S. and as of March 21, 2025, the average benchmark price per pound of V₂O₅ was $5.13 in Europe
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.
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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
- During 2024, the Company recognized revenues of $118.5 million (2023 – $198.6 million) from the sales of 8,400 tonnes of V 2 O 5 equivalent (2023 – 10,396 tonnes) as well as revenues from ilmenite sales of $6.4 million (2023 - $nil).
- The Company recorded a net loss of $50.6 million in 2024 compared with a net loss of $32.4 million in 2023, largely driven by a 37% decrease in revenues. This was partially offset by a decrease in certain expenses, most notably a 17% decrease in operating costs, as well as a 29% decrease in professional consulting and management fees, a 54% decrease in general and administrative expenses and a 45% decrease in technology start-up costs.
- In 2024, the Company's operating costs decreased by 17% to $30.2 million in 2024 compared to 43.2 million in 2023. The decrease in operating costs in 2024 was largely driven by a 34% decrease in direct mine and production costs. This decrease reflects the 19% decrease in vanadium sold in 2024, as well as the impact of the Company's previously announced initiatives to reduce production costs and improve productivity. Further, shared mining and production costs up to the milling process are allocated between vanadium and ilmenite, which reduces the amount recognized in direct mine and production costs for vanadium.
- Adjusted cash operating costs excluding royalties per pound 1 , which excludes the impact of inventory write-downs for produced products of $2.5 million for Q4 2024 (Q4 2023 – $nil), was $3.05 per lb, compared with $5.04 for Q4 2023. The decrease in unit costs seen in Q4 2024 compared with Q4 2023 is also largely due to the impact of the Company's previously announced initiatives to reduce production costs and improve productivity, including reducing haulage distances, reducing the number of contractors and a comprehensive review of all contracts. The Company expects to continue seeing the benefits of these initiatives in its financial results going forward.
- For 2024, total professional, consulting, and management fees decreased by 29% compared to 2023, while other general and administrative expenses declined by 54%. These reductions reflect the Company's continued emphasis on cost discipline, decreased activity and headcount at LCE following the initiation of the strategic review, and an expense recovery of $1.8 million primarily related to lower legal provisions. Additionally, technology start-up costs decreased by 45% in 2024 compared with 2023 primarily due to a decrease in activities at Largo Clean Energy Corp. (" LCE ") in 2024 as the installation of its battery project nears conclusion.
- Subsequent to Q4 2024, production in January 2025 was 392 tonnes of V 2 O 5 equivalent with 503 tonnes produced in February 2025. Production in January and February 2025 was impacted by temporarily mining lower-grade ore zones according to the mine sequencing plan, reduced mining equipment availability, and operational adjustments following the kiln refractory replacement completed in Q4 2024. V 2 O 5 equivalent sales were 687 tonnes in January 2025, with 551 tonnes sold in February 2025.
- Subsequent to Q4 2024, ilmenite concentrate production was 2,897 tonnes of in January 2025 and 1,477 tonnes in February 2025 with sales of 4,397 tonnes in January 2025 and 2,255 tonnes in February 2025.
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 has initiated a turnaround program with its mining contractor, including a general operating fleet overhaul and equipment refurbishments, to resolve reliability and availability issues that impacted mining throughput rates in late 2024 and early 2025
- Improvements in drilling efficiency and ore production rates have already been observed as of early March 2025
- Ongoing optimization of pit access and streamlining material handling processes to support more consistent throughput and operational stability
- Working with geotechnical experts to optimize mining practices, including improved blasting techniques, fleet utilization, and pit infrastructure upgrades
- Introducing mechanized and automated solutions in ore processing and tailings management, aimed at enhancing efficiency and reducing operational bottlenecks
- Optimizing crushing, milling and kiln operations as well as downstream processing plant efficiencies through improved processes, maintenance schedules and operational adjustments designed to increase productivity
- Strengthening cost management through rigorous monitoring and control processes to ensure operating expenses remain within targeted budget levels
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 |
- Year ended as per note 23 of the Company's 2024 annual consolidated financial statements.
Three months ended calculated as the amount per note 23 less the corresponding amount disclosed for the nine-month period in note 19 of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
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 | ||||
- Year ended as per note 24 of the Company's 2024 annual consolidated financial statements.
Three months ended calculated as the amount per note 24 less the corresponding amount disclosed for the nine-month period in note 20 of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023. - Year ended as per the Mine properties segment in note 19 of the Company's 2024 annual consolidated financial statements.
Three months ended calculated as the amount for the Company's Mine properties segment in note 19 of the Company's 2024 annual consolidated financial statements less the corresponding amount disclosed for the Mine properties segment for the nine-month period in note 16 of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023. - Year ended as per the Mine properties segment in note 19 less the decrease in legal provisions of $1,967 as noted in the "other general and administrative expenses" section on page 7 of the Company's year-end 2024 management's discussion and analysis.
Three months ended calculated as the amount for the Company's Mine properties segment in note 19 less the decrease in legal provisions of $1,967, less the corresponding amount disclosed for the Mine properties segment for the nine-month period in note 16 of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023. - Year ended as per note 5 of the Company's 2024 annual consolidated financial statements for warehouse materials.
Three months ended calculated as the amount per above less the corresponding amount disclosed for the nine-month period in note 5 of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023. - Year ended as per note 5 of the Company's 2024 annual consolidated financial statements for vanadium finished products.
Three months ended calculated as the amount per above less the corresponding amount disclosed for the nine-month period in note 5 of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
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 | ||||
- Year ended as per the consolidated statements of cash flows of the Company's 2024 annual consolidated financial statements.
Three months ended calculated as the amount per the consolidated statements of cash flows less the corresponding amount disclosed for the nine-month period in the consolidated statements of cash flows of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023. - Year ended as per note 5 of the Company's 2024 annual consolidated financial statements.
Three months ended calculated as the amount per note 5 of the Company's 2024 annual consolidated financial statements less the corresponding amount disclosed for the nine-month period in note 5 of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023. - Year ended as per note 6 of the Company's 2024 annual consolidated financial statements.
Three months ended calculated as the amount per note 6 of the Company's 2024 annual consolidated financial statement less the corresponding amount disclosed for the nine-month period in note 6 of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023. - As per the "non-recurring items" section on page 7 of the Company's year-end 2024 management's discussion and analysis.
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 | ) |
- Year ended as per note 19 of the Company's 2024 annual consolidated financial statements.
Three months ended calculated as the amount per note 19 of the Company's 2024 annual consolidated financial statements less the corresponding amount disclosed for the nine-month period in note 16 of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023. - Included in depreciation amount shown in table above.
- Year ended as per note 6 of the Company's 2024 annual consolidated financial statements.
Three months ended calculated as the amount per note 6 of the Company's 2024 annual consolidated financial statements less the corresponding amount disclosed for the nine-month period in note 6 of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
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 | ) |
- Year ended as per note 19.
- Three months ended calculated as the amount per note 19 less the corresponding amount disclosed for the nine-month period in note 16 of the Company's unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
____________________ |
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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For further information, please contact:
Investor Relations
Alex Guthrie
Director, Investor Relations
+1.416.861.9778
aguthrie@largoinc.com
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