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Largo Resources Provides Guidance on Second Quarter 2018 Revenue and Announces Receipt of Consent to Repayment from BNDES
Largo Resources Provides Guidance on Second Quarter 2018 Revenue and Announces Receipt of ...
About this update from Largo Inc.
[{"type":"text","content":"\n\n\n\nLargo Resources Provides Guidance on Second Quarter 2018 Revenue and Announces Receipt of Consent to Repayment from BNDES\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, July 17, 2018\n\n\n\nTORONTO, July 17, 2018 /CNW/ - Largo Resources Ltd. (\"Largo\" or the \"Company\") (TSX: LGO) (OTCQX: LGORF) is pleased to provide guidance on its expected revenue for the three month period ending June 30, 2018 anticipating revenue of between CDN$99 million and CDN$107 million, a new quarterly revenue record for the Company.\n\nOur anticipated Q2 2018 revenue would represent an increase of between approximately 176.6% and 198.9% over Q2 2017, if realized. The increase to revenue is expected to be driven largely by the upward movement in vanadium pentoxide (\"V2O5\") pricing and increased production when compared to Q2 2017.  The price range of V2O5 for the last week of Q2 2018, as reported by the European Metal Bulletin, was US$17.00/lb V2O5 to US$17.50/lb V2O5 as compared to US$5.35/lb V2O5 to US$6.00/lb V2O5 for the last week of Q2 2017.\n\nManagement anticipates that the overall benefit of the increased revenues will be tempered by increases in corresponding royalty expenses and certain largely non-cash foreign exchange adjustments anticipated to be required as a result of the weakening of the Brazilian Real against the USD given that certain of the Company's debts in Brazil are denominated in USD. The Company expects the foreign exchange loss in Q2 2018 to exceed the loss recorded in Q2 2017. \n\nIn addition, as a result of, among other things, the improvement in the vanadium pricing over the first half of 2018, the Company is also assessing its deferred tax position as at June 30, 2018, and work performed to date suggests that a significant net deferred tax asset might need to be recognized in the condensed interim consolidated statement of financial position at June 30, 2018, with a corresponding deferred tax recovery recognized in the condensed interim consolidated statements of income (loss) and comprehensive (loss) for the three and ...