Wednesday, March 15, 2023
Largo has a long and successful history as one of the world’s preferred vanadium companies through the supply of its VPURE™ and VPURE+™ products, which are sourced from one of the world’s highest-grade vanadium deposits at the Company’s Maracás Menchen Mine in Brazil. Aiming to enhance value creation at Largo, the Company is in the process of implementing a titanium dioxide pigment plant using feedstock sourced from its existing operations in addition to advancing its U.S.-based clean energy division with its VCHARGE vanadium batteries. Largo’s VCHARGE vanadium batteries contain a variety of innovations, enabling an efficient, safe and ESG-aligned long duration solution that is fully recyclable at the end of its 25+ year lifespan. Producing some of the world’s highest quality vanadium, Largo’s strategic business plan is based on two pillars: 1.) leading vanadium supplier with an outlined growth plan and 2.) U.S.-based energy storage business support a low carbon future.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Sales and realized prices were down. Production volumes (preannounced) fell 31% q-t-q due to maintenance and rain. Realized vanadium prices fell 12% with Largo prices falling below benchmark prices due to a drop in ferrovanadium prices and timing factors associated with contract deliveries.
Costs were up. Operating costs continued to rise in the fourth quarter. The change in cost per unit produced was especially noteworthy as production levels dropped. Management has put a priority on controlling operating costs and expects costs in future quarters to decline. Non-operating cost remain high, although they have eased since the third quarter.
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