Business
Largo Reports First Quarter 2023 Financial Results and Provides Update to 2023 Operational and Sales Outlook
All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated. Q1 2023 and Other Highlights Revenues of $57.4 million, a 35% increase
About this update from Largo Inc.
[{"type":"text","content":"All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated. Q1 2023 and Other Highlights Revenues of $57.4 million, a 35% increase over Q1 2022, mainly due to greater sales quantities at a higher revenue per lb sold1; Revenues per pound sold1 of $9.14, a 5% increase over Q1 2022 Operating costs of $45.9 million vs. $29.0 million in Q1 2022, and cash operating costs excluding royalties per pound1 of V2O5 equivalent sold of $5.15 vs. $3.97 in Q1 2022 Net loss of $1.2 million vs. a net loss of $2.0 million in Q1 2022 Cash provided before working capital items of $8.2 million, a 42% increase over Q1 2022 In January 2023, the Company secured two debt facilities: a two-year debt facility of $15.0 million, bearing interest at 6.85% per annum with payments due quarterly and principal repayments starting after a grace period of 180 days, and a three-year debt facility of $10.0 million, bearing interest at 8.36% per annum with an initial fee of 0.70% and payments due semi-annually with principal repayments starting after a grace period of 360 days Cash balance of $61.6 million, debt of $65.0 million and a net working capital2 surplus of $119.3 million exiting Q1 2023 Total V2O5 equivalent sales of 2,849 tonnes (including 245 tonnes of purchased material), a 28% increase over Q1 2022; V2O5 production 2,111 tonnes (4.6 million lbs3) vs. 2,441 tonnes (4.4 million lbs3) in Q1 2022 The Company has adjusted its annual 2023 V2O5 equivalent production guidance to 9,000 – 11,000 tonnes from 11,000 – 12,000 tonnes, its annual 2023 V2O5 equivalent sales guidance to 8,700 – 10,700 tonnes from 10,300 – 11,300 tonnes and its cash operating cost excluding royalties per lb sold guidance to $4.85 – 5.65 from $4.85 – 5.25 Q1 2023 results conference call and webcast: Thursday, May 11th at 1:00 p.m. ET Vanadium Market Update4 Spot demand remained strong in Q1 2023, primarily due to higher-than-expected demand from the aerospace sector with demand in the energy storage market anticipated to increase in future quarters largely due to anticipated Chinese vanadium redox flow battery (“VRFB”) deployments The average benchmark price per pound of V2O5 in Europe was $10.39 in Q1 2023, a 3% decrease from the average of $10.72 seen in Q1 2022; The average benchmark price per kg of ferrovanadium (“FeV”) in Europe was $39.46 in Q1 2023, a 1...