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Largo Highlights Continued Progress in Cost Reduction Initiatives at its Vanadium Operation in Brazil
All amounts expressed are in U.S. dollars, denominated by “$”. TORONTO / Aug 19, 2024 / Business Wire / Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ
About this update from Largo Inc.
[{"type":"text","content":"All amounts expressed are in U.S. dollars, denominated by “$”. TORONTO / Aug 19, 2024 / Business Wire / Largo Inc. (\"Largo\" or the \"Company\") (TSX: LGO) (NASDAQ: LGO), a leading producer and supplier of high-quality vanadium products and ilmenite, today highlights its cash operating cost1 metrics, emphasizing the Company’s focus on cost reduction initiatives at the Maracás Menchen Mine in Brazil. The Company has made continued progress in reducing costs at its vanadium operation in Brazil, which have started to yield positive results, excluding the impact of certain non-recurring items. During the fourth quarter of 2023 and the first and second quarter of 2024, the Company’s cash operating costs excluding royalties per pound1 were impacted by certain non-recurring items, mainly the impact of write-downs of the Company’s produced vanadium finished product inventories due to the declining price environment. These write-downs do not fully represent the Company's ongoing operational efficiency or the success of its cost reduction initiatives, especially when presented on a cost per pound basis. When these adjustments are excluded, the underlying unit costs more accurately demonstrate Largo’s sustained focus on optimizing its cost structure. The table below provides a detailed breakdown of the Company’s cash operating costs per pound sold1: 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Cash operating costs excluding royalties per pound1 ($/lb)i 5.15 5.18 5.44 5.44 6.12 5.97 Write-down of produced vanadium products ($)i - - - 2,215,000 4,526,000 6,688,000 Produced V2O5 sold (lbs)i 5,741,000 5,000,000 4,693,000 5,437,000 5,753,000 3,776,000 Adjusted cash operating costs excluding royalties per pound1 ($/lb) 5.15 5.18 5.44 5.04 5.33 4.20 i. As per the Company’s management’s discussion and analysis for the stated period. Daniel Tellechea, Director and Interim CEO of Largo, commented: \"We believe it is important to communicate to our stakeholders that the Company’s ongoing efforts to streamline operations and reduce costs are beginning to bear fruit, as evidenced by the declining trend in our unitary cash costs at the Maracás Menchen Mine. Despite the impact of non-recurring items in recent quarters, our team remains laser-focused on achieving further efficiencies, ensuring that Largo is well-positioned to navigate current market challen...