Largo Inc Stock Price, News & Analysis

Largo (TSX/NASDAQ: LGO) provided a corporate update highlighting operational progress amid significant challenges. The company achieved strong vanadium pentoxide production of 931 tonnes in August and 856 tonnes in July 2025. However, Largo faces serious headwinds including working capital constraints affecting inventory deliveries and supplier payments.

A major challenge emerged when U.S. tariffs on Brazilian imports increased from 10% to 50% effective August 6, 2025, impacting high-purity vanadium sales contracts. This has led to delayed shipments and some contract defaults. The company is actively lobbying for exemptions, citing strategic importance to U.S. aerospace and defense industries.

Additionally, Largo is expanding its ilmenite plant capacity to 115,000mt from 42,000mt annually, with commissioning targeted for October 2025. The company is also exploring opportunities to monetize its tungsten projects and seeking financing solutions to address immediate liquidity concerns.

Largo (TSX/NASDAQ: LGO) reported Q2 2025 financial results, showing mixed performance amid challenging vanadium market conditions. The company achieved revenues of $26.1 million (vs. $28.6M in Q2 2024) and reduced its net loss to $5.8 million (vs. $14.5M in Q2 2024).

Key operational highlights include V2O5 production of 2,256 tonnes and sales of 1,807 tonnes. The company demonstrated significant cost improvements with a 17% reduction in operating costs to $30.1 million and a 24% improvement in adjusted cash operating costs to $3.18/lb.

Notable challenges include new U.S. tariffs on Brazilian imports increasing from 10% to 50% effective August 6, 2025, and continued pressure on vanadium prices in Europe and China. The company secured a $6 million secured loan to enhance working capital position.

Largo (NASDAQ: LGO) has secured a $6 million loan through a promissory note with ARG International AG. The loan, which carries a 15% annual interest rate and a 1% arrangement fee, has a six-month term and is secured against Largo's 65.7% equity stake in Largo Physical Vanadium Corp.

The financing aims to provide working capital support as the company navigates through challenging market conditions marked by low vanadium prices. According to Interim CEO Daniel Tellechea, while operations have stabilized, the loan will offer flexibility to manage current price pressures while maintaining operational targets.

Largo (TSX/NASDAQ: LGO) reports Q2 2025 vanadium pentoxide (V₂O₅) production of 2,256 tonnes, showing a 74% increase from Q1 2025 but lower than Q2 2024's 2,689 tonnes. The company achieved an improved global recovery rate of 84.9%, up 14% year-over-year.

Key operational highlights include V₂O₅ equivalent sales of 1,807 tonnes and ilmenite concentrate production of 8,149 tonnes. The company's subsidiary, Storion Energy, secured a strategic agreement with TerraFlow Energy to supply vanadium electrolyte and battery stacks for a 48 MWh flow battery project in Texas, supported by Largo Physical Vanadium's electrolyte leasing model.

The operational turnaround is progressing with improved mine access, higher production rates, and stronger recovery rates, keeping the company on track to meet its 2025 production guidance.

Largo (TSX/NASDAQ: LGO) reported significant operational improvements at its Maracás Menchen Mine, with May 2025 V₂O₅ production reaching 835 tonnes, a 75% increase from April's 401 tonnes. Ilmenite concentrate production rose 65% to 3,025 tonnes from April's 1,833 tonnes.

The company has implemented several successful initiatives, including accessing new mining areas and optimizing resource recovery through tailings reprocessing. Largo maintains its 2025 V₂O₅ production guidance of 9,500-11,500 tonnes.

However, Largo received a default notice on June 9, 2025, for failing to deliver 900 tonnes of V₂O₅ and facing allegations regarding product specifications from a counterparty.

Largo (TSX: LGO) (NASDAQ: LGO) has secured a $10 million non-recourse factoring facility through its subsidiary Largo Resources USA with potential for expansion to $30 million. The facility allows the company to sell eligible accounts receivable, receiving 85% of invoice value upfront with commission rates between 0.51% and 1.37% based on payment terms. The two-year facility aims to improve working capital efficiency by accelerating cash conversion from vanadium shipments, which typically take 30-90 days. The company is working to establish similar facilities for Largo Inc. and Largo Commodities Trading Ltd. Interim CEO Daniel Tellechea emphasized this as a strategic move to better align cash flows with expenditures during their operational turnaround plan.

Largo (NYSE: LGO) reported challenging Q1 2025 financial results, with revenues declining to $28.2 million from $42.2 million in Q1 2024. The company posted a net loss of $9.2 million ($0.14 per share), an improvement from the $13.0 million loss in Q1 2024. V2O5 production decreased to 1,297 tonnes from 1,729 tonnes, while sales volumes fell to 2,046 tonnes from 2,765 tonnes. Despite operational challenges, Largo achieved a 15% reduction in operating costs to $42.5 million and a 27% reduction in adjusted cash operating costs excluding royalties to $3.88/lb. The company faces continued pressure from weak vanadium markets in Europe and China, though U.S. prices are holding 9% higher than early 2025. Management is focusing on operational turnaround initiatives and seeking near-term financing solutions to address liquidity needs.

Largo (TSX: LGO) (NASDAQ: LGO) held its Annual General Meeting of Shareholders on May 12, 2025, with a significant turnout of 71.17% of issued and outstanding common shares (45,626,173 shares). Shareholders approved all proposed matters, including the election of director nominees and the appointment of KPMG LLP as the company's auditors.

The voting results showed strong support for all director nominees, with approval ratings ranging from 83.27% to 98.17%. David Brace received the highest approval at 98.17% (36,620,985 votes), followed by Daniel Tellechea at 98.13%. Alberto Arias received the lowest approval rate at 83.27% with 31,061,877 votes in favor.

Largo (LGO) reports Q1 2025 production results with 1,297 tonnes of V2O5, down from 1,729 tonnes in Q1 2024. Total waste moved increased 32% to 3.5 million tonnes, while total mined material rose 21% to 3.9 million tonnes. The company revised down its 2025 V2O5 guidance, with production now expected at 8,500-10,500 tonnes (previously 9,500-11,500) and sales at 6,500-8,500 tonnes (previously 7,500-9,500).

Production was impacted by lower-grade ore zones, reduced equipment availability, and operational adjustments following kiln refractory replacement. Global recoveries improved to 77.8% from 70.5% year-over-year. V2O5 equivalent sales reached 2,046 tonnes in Q1 2025, including 154 tonnes of purchased material, representing a 26% decrease from Q1 2024.

The company maintains its cash operating cost guidance and ilmenite production targets while actively pursuing new working capital facilities and refinancing of long-term debt amid operational challenges.