Business
Largo Reports First Quarter 2022 Financial Results and Provides Adjusted 2022 Guidance; Announces Intention to Commence Normal Course Issuer Bid
TORONTO / May 11, 2022 / Business Wire / Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) today released financial and operating results for the t
About this update from Largo Inc.
[{"type":"text","content":"TORONTO / May 11, 2022 / Business Wire / Largo Inc. (\"Largo\" or the \"Company\") (TSX: LGO) (NASDAQ: LGO) today released financial and operating results for the three months ended March 31, 2022. The Company reported quarterly vanadium pentoxide (“V2O5”) equivalent sales of 2,232 tonnes at a cash operating cost excluding royalties per pound1 sold of $3.97. Paulo Misk, President and CEO of Largo, stated: “Despite some temporary maintenance and global logistical problems experienced during the quarter, the Company has normalized its operating flows and positioned itself to benefit from the stronger vanadium prices, which raised our revenues per pound sold1 in Q1 2022 by 34%. We have now adjusted our production, sales, and cost guidance for the full year 2022, factoring in the weaker first quarter as well as continued global inflationary pressures and the strengthening of the Brazilian Real against the U.S. Dollar. Management is confident in its ability to reach these updated targets and is focused on making additional improvements to its sales and production rates going forward. I am pleased to report that our commercial sales team continued to capitalize on current strong vanadium market fundamentals by surpassing 1,200 tonnes of V2O5 equivalent sold in April. The Company increased its in-transit inventory during the quarter, which we expect to reduce during the second half of the year through higher sale volumes following the expected improvement of global logistical constraints.” Financial Results (thousands of U.S. dollars, except for basic earnings (loss) per share and diluted earnings (loss) per share) Three months ended March 31, 2022 March 31, 2021 Revenues $42,688 39,801 Operating costs (28,958) (28,172) Direct mine and production costs (17,560) (15,544) Net income before tax 814 4,447 Income tax (expense) (602) (321) Deferred income tax recovery (expense) (2,166) 18 Net income (loss) (1,954) 4,144 Basic earnings (loss) per share ($0.03) $0.07 Diluted earnings (loss) per share ($0.03) $0.07 Cash provided before non-cash working capital items $5,751 $12,731 Net cash provided by (used in) operating activities (4,050) 1,711 Net cash (used in) provided by financing activities 385 (22,420) Net cash (used in) investing activities (4,268) (9,075) Net change in cash (5,396) (30,452) As at &nbs...