Business
Largo Reports Second Quarter 2024 Financial Results; Applauds China’s New Mandatory Steel Rebar Standards with Vanadium Use
All amounts expressed are in U.S. dollars, denominated by “$”. Q2 2024 and Other Highlights Revenues of $28.6 million ($26.2 million from vanadium sales and $2.
About this update from Largo Inc.
[{"type":"text","content":"All amounts expressed are in U.S. dollars, denominated by “$”. Q2 2024 and Other Highlights Revenues of $28.6 million ($26.2 million from vanadium sales and $2.4 million from ilmenite sales) vs. revenues of $53.1 million ($53.1 million from vanadium sales) in Q2 2023 Decline in revenues was largely driven by lower vanadium prices and lower vanadium sales volumes; Revenues per lb sold3 of V2O5 equivalent of $6.46 vs. $9.42 in Q2 2023 Operating costs of $36.4 million vs. $43.0 million in Q2 2023; Cash operating costs excluding royalties5 per pound sold of $5.97 vs. $5.18 per lb sold in Q2 2023 Net loss of $14.5 million (including $8.5 million in non-recurring items) vs. net loss of $6.0 million (including $1.1 million in non-recurring items) in Q2 2023; Basic loss per share of $0.23 vs. basic loss per share of $0.09 in Q2 2023 Cash balance of $35.8 million, net working capital1 surplus of $59.8 million and debt of $84.7 million exiting Q2 2024 Production of 2,689 tonnes (5.9 million lbs2) of V2O5 vs. 2,639 tonnes in Q2 2023 V2O5 equivalent sales of 1,841 tonnes (inclusive of 128 tonnes of purchased material) vs. 2,557 tonnes (inclusive of 289 tonnes of purchased material) sold in Q2 2023 The Company produced 8,625 tonnes and sold 12,261 tonnes of ilmenite concentrate in Q2 2024; The significant increase in ilmenite sales over Q1 2024 (513 tonnes) was expected and is primarily due to the catch-up in sales from the previous quarter Kiln maintenance planned for Q1 2025 to be performed in Q4 2024; Revised 2024 ilmenite concentrate production and sales guidance as a result; 2024 vanadium production, sales and cost guidance unchanged The Company’s continues its negotiations regarding the previously announced signing of a non-binding letter of intent by Largo Clean Energy Corp. (“LCE”) with Stryten Energy LLC to establish a 50:50 joint venture in the United States remain ongoing Q2 2024 results conference call: Friday, August 9 at 10:00 a.m. ET Vanadium Market Update3 The average benchmark price per lb of V2O5 in Europe was $5.93 in Q2 2024, a 30% decrease from the average of $8.46 seen in Q2 2023; The average benchmark price per kg of ferrovanadium in Europe was $26.83 in Q2 2024, a 20% decrease over the average of $33.47 in Q2 2023 Vanadium spot demand remained soft in Q2 2024, primarily due to continued adverse conditions in the...