Australian Vanadium Limited (ASX: AVL) (AVL) is pleased to announce the completion of construction of its vanadium electrolyte manufacturing facility (“Facility”).1
KEY POINTS
The Facility is located in the northern suburbs of Perth and has been designed to produce up to 33MWh per year of high purity electrolyte for vanadium flow batteries (VFBs). The construction of the Facility has been supported by the majority of a $3.69 million Australian Government Modern Manufacturing Initiative grant awarded to AVL2 and demonstrates the value of investing in domestic downstream processing capability, allowing more value from Western Australia’s battery mineral endowment to be captured and retained in Australia.
Construction of the Facility was undertaken by Western Australian-based engineering company Primero Group (subsidiary of NRW Holdings, ASX: NWH) and was completed without injury. AVL has issued a certificate of practical completion to Primero Group, which allows for the formal handover of the Facility from the construction team to the commissioning team.
The Facility utilises proven electrolyte manufacturing technology which is licensed from U.S. Vanadium LLC (USV) exclusively to AVL in Australia and New Zealand. Using this technology has greatly reduced the development risk for the Facility.
USV will assist with commissioning of the Facility, which is anticipated to be completed early in 2024. The vanadium electrolyte produced by the Facility will initially be employed in the VFB projects being developed by AVL’s wholly owned subsidiary, VSUN Energy Pty Ltd, and will allow AVL to qualify its product with key global VFB manufacturers.
Demand for vanadium electrolyte within the region is expected to grow rapidly over the coming years. According to Guidehouse Insights, “Asia Pacific leads significantly, with a compound annual growth rate (CAGR) of 25.7% for revenue and 37.4% for energy capacity. By 2031, it is estimated that Asia Pacific will reach around 14.5 GWh of annual VFB energy capacity”.3
Construction and subsequent operation of the Facility demonstrates AVL’s technical capabilities and ensures that the Company remains engaged with downstream aspects of the vanadium and VFB markets.
Vanadium pentoxide for electrolyte manufacture will initially be sourced from USV, prior to supply being available from the Company’s Australian Vanadium Project in Western Australia. The experience gained from the construction of the Facility is anticipated to be of great use in the construction of the Australian Vanadium Project.
AVL’s Chief Executive Officer, Graham Arvidson comments, “We are pleased to have been able to successfully and safely execute another segment of our ‘pit to battery’ strategy through the construction of Western Australia’s first vanadium electrolyte manufacturing facility. We are grateful to the teams at Primero and USV for their contributions in delivering a facility that is first of its kind for Western Australia. Production of AVL’s first vanadium electrolyte will position the Company to become a trusted supplier for battery projects in Australia and the wider region.”
Figure 1 AVL and Primero Group staff at the AVL vanadium electrolyte manufacturing facility
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This article includes content from Australian Vanadium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Australian Vanadium (ASX:AVL, FRA:JT71, OTC:ATVVF), FRA:JT71, OTC:ATVVF) holds one of the most advanced high-grade vanadium deposits in the world and now focuses significantly on developing its Australian Vanadium project, a high-grade vanadium, titanium and iron resource situated roughly 43 kilometers south of the mining town of Meekatharra in Western Australia.
The company's wholly-owned subsidiary VSUN Energy has current projects including the installation of a VRFB to power an industrial chlorinator, as a standalone power system for a bore pump at a major nickel project, and to power the systems at an orchard in Victoria. VSUN Energy is also consulting with several major mining clients as the demand for vanadium is expected to double by 2032, with 90 percent of this demand driven by VRFBs.
The major component of a VRFB is vanadium electrolyte. This solution of vanadium mixed with acid and water will be manufactured by AVL at a facility being constructed in the Perth region.
Both VSUN Energy and the AVL are part of Australian Vanadium's vertically integrated strategy, through which it intends to support every stage of VRFB production. This will, the company maintains, give it the ability to not only produce the world's highest-quality vanadium, but also tailor that vanadium to its customers’ needs.
This Australian Vanadium profile is part of a paid investor education campaign.*
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February 16th
| Presentation | Ticker(s) |
| Guanajuato Silver Co Ltd. | OTCQX: GSVRF | TSXV: GSVR |
| Doré Copper Mining Corp. | OTCQX: DRCMF | TSXV: DCMC |
| Amex Exploration Inc. | OTCQX: AMXEF | TSXV: AMX |
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| Grounded Lithium Corp. | OTCQB: GRDAF | TSXV: GRD |
| Giga Metals | OTCQX: HNCKF | TSXV: GIGA |
| Lavras Gold Corp. | OTCQB: LGCFF | TSXV: LGC |
| Century Lithium Corp. | OTCQX: CYDVF | TSXV: LCE |
| Power Nickel Inc. | OTCQB: PNPNF | TSXV: PNPN |
| O3 Mining Inc | OTCQX: OIIIF | TSXV: OIII |
| Outcrop Silver & Gold Corp. | OTCQX: OCGSF | TSXV: OCG |
| Empress Royalty Corp. | OTCQX: EMPYF | TSX-V: EMPR |
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Q1 2025 and Other Highlights
Vanadium Market Update
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
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 |
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 | ||
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 | |
______________________________________
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 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 .
View source version on businesswire.com: https://www.businesswire.com/news/home/20250512675623/en/
For further information, please contact:
Investor Relations
Alex Guthrie
Director, Investor Relations
+1.416.861.9778
aguthrie@largoinc.com
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All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Q1 2025 Highlights
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
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 | |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250422689351/en/
For further information, please contact:
Investor Relations
Alex Guthrie
Director, Investor Relations
+1.416.861.9778
aguthrie@largoinc.com
News Provided by Business Wire via QuoteMedia
All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Q4, Full Year 2024 and Other Highlights
Vanadium Market Update
Largo Inc. (" Largo " or the " Company ") ( TSX: LGO ) ( NASDAQ: LGO ) today reported financial and operational results for the three and twelve months ended December 31, 2024. Amid challenging market conditions and declining vanadium prices, the Company has increased its focus on operational improvements, further cost reductions, and productivity enhancements at its Maracás Menchen Mine. The Company achieved annual vanadium pentoxide (" V₂O₅ ") equivalent sales of 9,600 tonnes, with adjusted cash operating costs excluding royalties per pound¹ sold improving significantly to $3.04 in Q4 2024 down from $5.04 in Q4 2023.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250328844695/en/
Largo Reports Q4 and Full Year 2024 Financial Results; Announces Operational Turnaround Plan and Additional Cost Optimization Initiatives
Daniel Tellechea, Interim CEO and Director of Largo, stated: "We recognize the significant operational and market challenges Largo has encountered and are taking decisive steps to reposition the Company. While our cost reduction initiatives have already delivered measurable results—such as a 30% reduction in operating costs in Q4 2024 compared to the prior year—we continue to face production challenges and near-term financial pressures that require focused action." He continued: "As part of our operational turnaround strategy, we've implemented a number of critical initiatives in recent months to further enhance productivity and strengthen cost controls. With the appointment of Gordon Babcock and Luis Rendón as Co-Chief Operating Officers in February 2025, we've further intensified our focus on execution and efficiency across the business. Under their leadership, our team is actively identifying and acting on additional opportunities to improve operational performance."
He concluded: "We are also prioritizing efforts to reinforce our liquidity position and are pursuing a range of strategic and refinancing options to support ongoing operations. Driving a successful turnaround remains a company-wide priority, and we remain focused on taking the steps needed to help strengthen Largo's operational and financial foundation for the future."
Financial and Operating Results – Highlights
(thousands of U.S. dollars, except as otherwise stated) | Three months ended | Year ended | ||
Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2024 | Dec. 31, 2023 | |
Revenues | 24,268 | 44,170 | 124,920 | 198,684 |
Operating costs | (30,194) | (43,218) | (145,818) | (174,758) |
Net income (loss) | (12,990) | (13,301) | (50,565) | (32,358) |
Basic earnings (loss) per share | (0.19) | (0.21) | (0.78) | (0.51) |
Adjusted EBITDA 1 | 2,337 | 793 | (2,076) | 11,948 |
Mining operations adjusted EBITDA 1 | 4,466 | 3,503 | 7,976 | 29,992 |
Cash provided before working capital items (operating activities) | 18,563 | 43 | 16,038 | 9,335 |
Cash operating costs excl. royalties ($/lb) 1 | 3.67 | 5.44 | 4.84 | 5.30 |
Adjusted cash operating costs excl. royalties 1 ($/lb) | 3.05 | 5.04 | 4.05 | 5.19 |
Cash | 22,106 | 42,714 | 22,106 | 42,714 |
Debt | 92,280 | 75,000 | 92,280 | 75,000 |
Total mined – dry basis (tonnes) | 3,673,416 | 3,490,711 | 13,949,665 | 14,864,394 |
Total ore mined (tonnes) | 476,742 | 473,958 | 2,249,759 | 1,752,982 |
Effective grade of ore milled 2 (%) | 0.73 | 1.03 | 0.88 | 1.04 |
V 2 O 5 equivalent produced (tonnes) | 1,775 | 2,768 | 9,264 | 9,681 |
Ilmenite concentrate produced (tonnes) | 10,292 | 8,970 | 44,863 | 8,970 |
Key Highlights
The information provided within this release should be read in conjunction with Largo's annual consolidated financial statements for the years ended December 31, 2024 and 2023 and its management's discussion and analysis for the year ended December 31, 2024 which are available on our website at www.largoinc.com or on the Company's respective profiles at www.sedarplus.com and www.sec.gov .
Operational Turnaround and Cost Optimization Strategy
In recent months, the Company has implemented several critical initiatives aimed at addressing operational challenges, enhancing productivity, and strengthening cost controls. Following the appointment of Gordon Babcock and Luis Rendón as Co-Chief Operating Officers in February 2025, Largo has further increased its focus on operational execution and efficiencies. Under their leadership, the team is actively identifying additional areas for improvement and implementing targeted enhancements to drive increased performance. Successfully executing the Company's operational turnaround remains a top priority and will require the collective efforts of the entire team.
Key actions underway and priorities ahead include:
The Company recognizes that while its ongoing operational turnaround is a critical step forward, additional measures are needed to fully address the Company's broader financial headwinds. Market conditions, including a 21% decline in vanadium prices since December 31, 2023, and an elevated cost environment, have affected cash flows and financial forecasts. In response, the Company has taken decisive actions to strengthen its financial position, including ongoing cost reductions, operational efficiencies, and liquidity management. As a result of its cost reduction initiatives, the Company has recognized a 30% reduction in operating costs in Q4 2024 vs. Q4 2023. The Company is also actively working to improve its liquidity to support long-term goals, including exploring financing alternatives such as refinancing existing debt and securing additional capital through new debt facilities.
The Company will continue to monitor its progress and provide updates as needed. At this time, it will maintain its annual guidance ranges for 2025 and will reassess as operational improvements advance. Should any material changes to guidance be necessary, the Company will update the market accordingly.
About Largo
Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in Brazil. As one of the world's largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The Company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.
Largo is also strategically invested in the long-duration energy storage sector through its 50% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S.
Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com .
Cautionary Statement Regarding Forward-looking Information:
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Forward‐looking information in this press release includes, but is not limited to, statements with respect to the timing and amount of estimated future production and sales; the future price of commodities; costs of future activities and operations, including, without limitation, the effect of inflation and exchange rates; the effect of unforeseen equipment maintenance or repairs on production; the ability to produce high purity V2O5 and V2O3 according to customer specifications; the extent of capital and operating expenditures; the ability of the Company to make improvements on its current short-term mine plan; and the impact of global delays and related price increases on the Company's global supply chain and future sales of vanadium products.
The following are some of the assumptions upon which forward-looking information is based: that general business and economic conditions will not change in a material adverse manner; demand for, and stable or improving price of V2O5 and other vanadium products, ilmenite and titanium dioxide pigment; receipt of regulatory and governmental approvals, permits and renewals in a timely manner; that the Company will not experience any material accident, labour dispute or failure of plant or equipment or other material disruption in the Company's operations at the Maracás Menchen Mine or relating to Largo Clean Energy, specially in respect of the installation and commissioning of the EGPE project; the availability of financing for operations and development; the availability of funding for future capital expenditures; the ability to replace current funding on terms satisfactory to the Company; the ability to mitigate the impact of heavy rainfall; the reliability of production, including, without limitation, access to massive ore, the Company's ability to procure equipment, services and operating supplies in sufficient quantities and on a timely basis; that the estimates of the resources and reserves at the Maracás Menchen Mine are within reasonable bounds of accuracy (including with respect to size, grade and recovery and the operational and price assumptions on which such estimates are based); the accuracy of the Company's mine plan at the Maracás Menchen Mine; that the Company's current plans for ilmenite can be achieved; the Company's ability to protect and develop its technology; the Company's ability to maintain its IP; the competitiveness of the Company's product in an evolving market; the Company's ability to attract and retain skilled personnel and directors; the ability of management to execute strategic goals; that the Company will enter into agreements for the sales of vanadium, ilmenite and TiO2 products on favourable terms and for the sale of substantially all of its annual production capacity; and receipt of regulatory and governmental approvals, permits and renewals in a timely manner.
Forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved", although not all forward-looking statements include those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Forward-looking statements are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances. Forward-looking statements are based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on www.sedarplus.ca and available on www.sec.gov from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo's annual and interim MD&A which also apply.
Trademarks are owned by Largo Inc.
Non-GAAP 3 Measures
The Company uses certain non-GAAP measures in this press release, which are described in the following section. Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS, the Company's GAAP, and might not be comparable to similar financial measures disclosed by other issuers. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that non-GAAP financial measures, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company.
Revenues Per Pound Sold
This press release refers to revenues per pound sold, V 2 O 5 revenues per pound of V 2 O 5 sold, V 2 O 3 revenues per pound of V 2 O 3 sold and FeV revenues per kg of FeV sold, which are non-GAAP financial measures that are used to provide investors with information about a key measure used by management to monitor performance of the Company.
These measures, along with cash operating costs, are considered to be key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine and sales activities. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS.
The following table provides a reconciliation of revenues per pound sold, V 2 O 5 revenues per pound of V 2 O 5 sold, V 2 O 3 revenues per pound of V 2 O 3 sold and FeV revenues per kg of FeV sold to revenues and the revenue information presented in note 19 as per the 2024 annual consolidated financial statements.
Three months ended | Year ended | |||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||
Revenues - V 2 O 5 produced i | $ | 10,271 | $ | 25,182 | $ | 57,446 | $ | 115,534 |
V 2 O 5 sold - produced (000s lb) | 2,053 | 3,215 | 9,332 | 13,113 | ||||
V 2 O 5 revenues per pound of V 2 O 5 sold - produced ($/lb) | $ | 5.00 | $ | 7.83 | $ | 6.16 | $ | 8.81 |
Revenues - V 2 O 5 purchased i | $ | — | $ | 1,497 | $ | 988 | $ | 9,028 |
V 2 O 5 sold - purchased (000s lb) | — | 265 | 176 | 1,279 | ||||
V 2 O 5 revenues per pound of V 2 O 5 sold - purchased ($/lb) | $ | — | $ | 5.65 | $ | 5.61 | $ | 7.06 |
Revenues - V 2 O 5 i | $ | 10,271 | $ | 26,679 | $ | 58,434 | $ | 124,562 |
V 2 O 5 sold (000s lb) | 2,053 | 3,480 | 9,508 | 14,392 | ||||
V 2 O 5 revenues per pound of V 2 O 5 sold ($/lb) | $ | 5.00 | $ | 7.67 | $ | 6.15 | $ | 8.65 |
Revenues - V 2 O 3 produced 1 | $ | 457 | $ | 6,213 | $ | 8,353 | $ | 13,788 |
V 2 O 3 sold - produced (000s lb) | 59 | 596 | 898 | 1,215 | ||||
V 2 O 3 revenues per pound of V 2 O 3 sold - produced ($/lb) | $ | 7.75 | $ | 10.42 | $ | 9.30 | $ | 11.35 |
Revenues - V 2 O 3 purchased i | $ | — | $ | — | $ | — | $ | 1,155 |
V 2 O 3 sold - purchased (000s lb) | — | — | — | 88 | ||||
V 2 O 3 revenues per pound of V 2 O 3 sold - purchased ($/lb) | $ | — | $ | — | $ | — | $ | 13.13 |
Revenues - V 2 O 3 i | $ | 457 | $ | 6,213 | $ | 8,353 | $ | 14,943 |
V 2 O 3 sold (000s lb) | 59 | 596 | 898 | 1,303 | ||||
V 2 O 3 revenues per pound of V 2 O 3 sold ($/lb) | $ | 7.75 | $ | 10.42 | $ | 9.30 | $ | 11.47 |
Revenues - FeV produced i | $ | 12,212 | $ | 11,278 | $ | 46,890 | $ | 57,686 |
FeV sold - produced (000s kg) | 585 | 479 | 2,221 | 2,070 | ||||
FeV revenues per kg of FeV sold - produced ($/kg) | $ | 20.88 | $ | 23.54 | $ | 21.11 | $ | 27.87 |
Revenues - FeV purchased 1 | $ | 106 | $ | — | $ | 4,872 | $ | 1,386 |
FeV sold - purchased (000s kg) | 5 | — | 227 | 50 | ||||
FeV revenues per kg of FeV sold - purchased ($/kg) | $ | 21.20 | $ | — | $ | 21.46 | $ | 27.72 |
Revenues – FeV i | $ | 12,318 | $ | 11,278 | $ | 51,762 | $ | 59,072 |
FeV sold (000s kg) | 590 | 479 | 2,448 | 2,120 | ||||
FeV revenues per kg of FeV sold ($/kg) | $ | 20.88 | $ | 23.54 | $ | 21.14 | $ | 27.86 |
Revenues 1 | $ | 23,046 | $ | 44,170 | $ | 118,549 | $ | 198,577 |
V 2 O 5 equivalent sold (000s lb) | 4,041 | 5,743 | 18,519 | 22,920 | ||||
Revenues per pound sold ($/lb) | $ | 5.70 | $ | 7.69 | $ | 6.40 | $ | 8.66 |
Cash Operating Costs Excluding Royalties and Adjusted Cash Operating Costs Excluding Royalties
This press release refers to cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, which are non-GAAP ratios based on cash operating costs, cash operating costs excluding royalties and adjusted cash operating costs excluding royalties, which are non-GAAP financial measures, in order to provide investors with information about a key measure used by management to monitor performance. This information is used to assess how well the Maracás Menchen Mine is performing compared to its plan and prior periods, and to also to assess its overall effectiveness and efficiency.
Cash operating costs includes mine site operating costs such as mining costs, plant and maintenance costs, sustainability costs, mine and plant administration costs, royalties and sales, general and administrative costs (all for the Mine properties segment), but excludes depreciation and amortization, share-based payments, foreign exchange gains or losses, commissions, reclamation, capital expenditures and exploration and evaluation costs. Operating costs not attributable to the Mine properties segment are also excluded, including conversion costs, product acquisition costs, distribution costs and inventory write-downs.
Cash operating costs excluding royalties is calculated as cash operating costs less royalties. Adjusted cash operating costs excluding royalties is calculated as cash operating costs excluding royalties less write-downs of produced products.
Cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound are obtained by dividing cash operating costs, cash operating costs excluding royalties and adjusted cash operating costs excluding royalties, respectively, by the pounds of vanadium equivalent sold that were produced by the Maracás Menchen Mine.
Cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, along with revenues, are considered to be key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS.
The following table provides a reconciliation of cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound for the Maracás Menchen Mine to operating costs as per the 2024 annual consolidated financial statements.
Three months ended | Year ended | |||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||
Operating costs i | $ | 30,194 | $ | 43,218 | $ | 145,818 | $ | 174,758 | ||||
Professional, consulting and management fees ii | 474 | 887 | 1,875 | 3,102 | ||||||||
Other general and administrative expenses iii | (38 | ) | 718 | 898 | 1,750 | |||||||
Less: ilmenite costs and write-down i | (2,317 | ) | — | (8,192 | ) | — | ||||||
Less: iron ore costs i | (29 | ) | (84 | ) | (512 | ) | (722 | ) | ||||
Less: conversion costs i | (2,217 | ) | (1,768 | ) | (8,240 | ) | (7,319 | ) | ||||
Less: product acquisition costs i | (99 | ) | (1,974 | ) | (4,996 | ) | (15,354 | ) | ||||
Less: distribution costs i | (1,601 | ) | (2,366 | ) | (7,418 | ) | (8,540 | ) | ||||
Less: inventory write-down iv | 23 | (192 | ) | (238 | ) | (1,853 | ) | |||||
Less: depreciation and amortization expense i | (7,984 | ) | (6,592 | ) | (26,795 | ) | (26,048 | ) | ||||
Cash operating costs | $ | 16,406 | $ | 31,847 | $ | 92,200 | $ | 119,774 | ||||
Less: royalties i | (1,630 | ) | (2,243 | ) | (7,052 | ) | (9,162 | ) | ||||
Cash operating costs excluding royalties | $ | 14,776 | $ | 29,604 | $ | 85,148 | $ | 110,612 | ||||
Less: vanadium inventory write-down v | (2,517 | ) | (2,215 | ) | (13,897 | ) | (2,215 | ) | ||||
Adjusted cash operating costs excluding royalties | $ | 12,259 | $ | 27,389 | $ | 71,251 | $ | 108,397 | ||||
Produced V 2 O 5 sold (000s lb) | 4,024 | 5,437 | 17,603 | 20,871 | ||||||||
Cash operating costs per pound ($/lb) | $ | 4.08 | $ | 5.86 | $ | 5.24 | $ | 5.74 | ||||
Cash operating costs excluding royalties per pound ($/lb) | $ | 3.67 | $ | 5.44 | $ | 4.84 | $ | 5.30 | ||||
Adjusted cash operating costs excluding royalties per pound ($/lb) | $ | 3.05 | $ | 5.04 | $ | 4.05 | $ | 5.19 | ||||
EBITDA and Adjusted EBITDA
This press release refers to earnings before interest, tax, depreciation and amortization, or "EBITDA", and adjusted EBITDA, which are non-GAAP financial measures, in order to provide investors with information about key measures used by management to monitor performance. EBITDA is used as an indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
Adjusted EBITDA removes the effect of inventory write-downs, impairment charges (including write-downs of vanadium assets), insurance proceeds received, movements in legal provisions, non-recurring employee settlements and other expense adjustments that are considered to be non-recurring for the Company. The Company believes that by excluding these amounts, which are not indicative of the performance of the core business and do not necessarily reflect the underlying operating results for the periods presented, it will assist analysts, investors and other stakeholders of the Company in better understanding the Company's ability to generate liquidity from its core business activities.
EBITDA and adjusted EBITDA are intended to provide additional information to analysts, investors and other stakeholders of the Company and do not have any standardized definition under IFRS. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures exclude the impact of depreciation, costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operating activities as determined under IFRS. Other companies may calculate EBITDA and adjusted EBITDA differently.
The following table provides a reconciliation of EBITDA and adjusted EBITDA to net income (loss) as per the 2024 annual consolidated financial statements.
Three months ended | Year ended | |||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||
Net loss | $ | (11,664 | ) | $ | (13,301 | ) | $ | (49,239 | ) | $ | (32,358 | ) |
Foreign exchange loss | 8,560 | (823 | ) | 12,517 | 183 | |||||||
Share-based payments | 138 | 231 | 1,321 | (362 | ) | |||||||
Finance costs | 2,360 | 4,096 | 9,460 | 9,630 | ||||||||
Interest income | (92 | ) | (280 | ) | (1,523 | ) | (2,018 | ) | ||||
Income tax (recovery) expense | 29 | 40 | (2,813 | ) | 88 | |||||||
Deferred income tax recovery | (7,651 | ) | (3,119 | ) | (19,193 | ) | (2,786 | ) | ||||
Depreciation i | 8,205 | 7,393 | 28,675 | 29,250 | ||||||||
EBITDA | $ | (115 | ) | $ | (5,763 | ) | $ | (20,795 | ) | $ | 1,627 | |
Inventory write-down ii | 5,627 | 2,407 | 18,475 | 4,068 | ||||||||
Write-down of vanadium assets | (78 | ) | 3,535 | 1,119 | 4,862 | |||||||
Write-down of mine properties, plant and equipment iii | — | — | 1,092 | — | ||||||||
Movement in legal provisions iv | (3,097 | ) | (85 | ) | (1,967 | ) | 692 | |||||
Adjusted EBITDA | $ | 2,337 | $ | 793 | $ | (2,076 | ) | $ | 11,948 | |||
Less: Clean Energy Adjusted EBITDA | 1,906 | 2,341 | 9,345 | 16,999 | ||||||||
Less: LPV Adjusted EBITDA | 223 | 369 | 707 | 1,045 | ||||||||
Mining Operations Adjusted EBITDA | $ | 4,466 | $ | 3,503 | $ | 7,976 | $ | 29,992 | ||||
Three months ended | Year ended | |||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||
Clean Energy | ||||||||||||
Net loss i | $ | (1,930 | ) | $ | (2,943 | ) | $ | (11,529 | ) | $ | (19,429 | ) |
Foreign exchange loss i | 9 | 5 | 27 | 36 | ||||||||
Finance costs i | 7 | 12 | 39 | 56 | ||||||||
Depreciation ii | 8 | 585 | 1,026 | 2,338 | ||||||||
Clean Energy EBITDA | $ | (1,906 | ) | $ | (2,341 | ) | $ | (10,437 | ) | $ | (16,999 | ) |
Write-down of mine properties, plant and equipment iii | — | — | 1,092 | — | ||||||||
Clean Energy Adjusted EBITDA | $ | (1,906 | ) | $ | (2,341 | ) | $ | (9,345 | ) | $ | (16,999 | ) |
Three months ended | Year ended | |||||||||||
December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||
LPV | ||||||||||||
Net loss 1 | $ | (194 | ) | $ | (3,930 | ) | $ | (1,927 | ) | $ | (5,969 | ) |
Foreign exchange loss 1 | 35 | 2 | 38 | (50 | ) | |||||||
Finance costs 1 | 19 | 24 | 81 | 112 | ||||||||
Interest income 1 | (5 | ) | — | (18 | ) | — | ||||||
LPV EBITDA | $ | (145 | ) | $ | (3,904 | ) | $ | (1,826 | ) | $ | (5,907 | ) |
Write-down of vanadium assets 1 | (78 | ) | 3,535 | 1,119 | 4,862 | |||||||
LPV Adjusted EBITDA | $ | (223 | ) | $ | (369 | ) | $ | (707 | ) | $ | (1,045 | ) |
____________________ |
2 Effective grade represents the percentage of magnetic material mined multiplied by the percentage of V 2 O 5 in the magnetic concentrate. |
3 GAAP – Generally Accepted Accounting Principles. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250328844695/en/
For further information, please contact:
Investor Relations
Alex Guthrie
Director, Investor Relations
+1.416.861.9778
aguthrie@largoinc.com
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