Largo Inc
NASDAQ:LGO
Largo Inc
Largo Inc. engages in the exploration and production of vanadium at the Maracas Menchen Mine located in Brazil. The company is headquartered in Toronto, Ontario and currently employs 478 full-time employees. The firm is into the development and sale of vanadium-based utility scale electrical energy storage systems to support the planets to renewable energy. The Company’s product includes VPURE Flakes, VPURE+ Flakes, VPURE+ Powder and Largo clean energy. Its products are sourced from vanadium deposits at the Maracas Menchen Mine in Brazil. Its VPURE Flakes are used to produce ferrovanadium and vanadium carbon nitride. The VPURE+ Flakes are used in the production of master alloys, where it provides high strength-to-weight ratios for the titanium alloy and aerospace industries. Largo Clean Energy utilizes flow battery stack technology and vanadium electrolyte processing technology to develop and deploy its VCHARGE battery systems. Its VCHARGE system is an energy storage battery that uses vanadium electrolyte liquid solution to store and release energy.
Largo Inc. engages in the exploration and production of vanadium at the Maracas Menchen Mine located in Brazil. The company is headquartered in Toronto, Ontario and currently employs 478 full-time employees. The firm is into the development and sale of vanadium-based utility scale electrical energy storage systems to support the planets to renewable energy. The Company’s product includes VPURE Flakes, VPURE+ Flakes, VPURE+ Powder and Largo clean energy. Its products are sourced from vanadium deposits at the Maracas Menchen Mine in Brazil. Its VPURE Flakes are used to produce ferrovanadium and vanadium carbon nitride. The VPURE+ Flakes are used in the production of master alloys, where it provides high strength-to-weight ratios for the titanium alloy and aerospace industries. Largo Clean Energy utilizes flow battery stack technology and vanadium electrolyte processing technology to develop and deploy its VCHARGE battery systems. Its VCHARGE system is an energy storage battery that uses vanadium electrolyte liquid solution to store and release energy.
Production Record: Largo delivered its highest vanadium production in 7 quarters, reaching 3,072 tonnes, up 42% from Q3 last year.
Cost Reductions: Operating costs fell by 31% to $29.5 million, and cash operating costs dropped 43% to $3.12 per pound sold.
Revenue & Market Conditions: Revenue was $29.9 million, impacted by lower vanadium prices and reduced sales volumes as spot prices dropped sharply in Europe.
Liquidity Action: A new vanadium supply agreement is set to unlock approximately $23.5 million in additional liquidity between Q4 and Q1.
Ilmenite Growth: Ilmenite production surged 90% quarter-over-quarter to 16,383 tonnes and sales rose 60% over Q2, supporting revenue diversification.
Outlook & Guidance: Management confirmed confidence in meeting full-year 2024 guidance but expects Q4 production to be lower due to scheduled kiln maintenance.
Market Dynamics: Ongoing vanadium market softness continues, especially in Europe, but early signs of recovery are seen in the U.S. market for 2025.
