Largo Inc Stock Price, News & Analysis

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.

Stryten Energy has announced plans to expand its domestic manufacturing capacity to 24 Gigawatts, adding 10 Gigawatts of new energy storage capacity across its 11 U.S. manufacturing facilities. The expansion, supported by advanced manufacturing production tax credits, aims to strengthen American energy security and resilience.

The company currently employs over 2,500 people producing batteries for military, government, data centers, grid storage, automotive, and material handling applications. The expansion will create hundreds of high-paying manufacturing jobs across facilities in Kansas, Georgia, Iowa, Virginia, and Arkansas.

Stryten operates a vertically integrated supply chain with plants in Pennsylvania, New York, Indiana, Missouri, and Wisconsin. The investment plan includes increasing domestic processing of recycled battery plastic and expanding lithium battery production through partnerships with Dragonfly Energy. Additionally, through its affiliate Stryten Critical E-Storage, the company has launched Storion Energy in partnership with Largo to produce electrolytes for vanadium redox flow batteries.

Largo (TSX: LGO) (NASDAQ: LGO) reported Q4 and full-year 2024 financial results, highlighting significant challenges and operational changes. Q4 2024 revenues decreased to $24.3 million from $44.2 million in Q4 2023, with an additional $13.6 million from a vanadium inventory supply agreement. The company reported a Q4 net loss of $13.0 million.

Notable improvements include a 30% reduction in Q4 operating costs and a 39% decrease in adjusted cash operating costs per pound to $3.05. Annual V2O5 production reached 9,264 tonnes in 2024, within revised guidance but down from 9,681 tonnes in 2023. The company implemented an operational turnaround plan focusing on cost optimization and efficiency improvements.

Vanadium market conditions remained challenging, with European V₂O₅ prices averaging $5.34 per pound in Q4 2024, down 17% year-over-year. The company appointed new Co-Chief Operating Officers and is pursuing strategic refinancing options to strengthen its liquidity position.

Largo (TSX: LGO) (NASDAQ: LGO) has announced a significant leadership transition, appointing Gordon Babcock and Luis Rendón as Co-Chief Operating Officers following the resignation of former COO Celio Pereira. This change is part of the company's strategy to enhance operational performance at the Maracás Menchen Mine.

Babcock brings over 40 years of mining experience, having served as COO at Sierra Metals and Jaguar Mining, with expertise in mine operations and engineering. Rendón, a metallurgical engineer with 40+ years of experience, has held senior roles at Sierra Metals, Compañía Minera Kolpa, and Pan American Silver, specializing in mineral processing and plant operations.

The Co-COO structure aims to improve operational oversight, with each executive managing distinct areas to enhance efficiency and cost control. This appointment aligns with Largo's broader turnaround strategy focused on operational improvements in Brazil.

Largo (TSX: LGO) (NASDAQ: LGO) reports Q4 2024 V2O5 production of 1,775 tonnes, down 36% from Q4 2023, primarily due to scheduled maintenance and lower ore grades. Annual production reached 9,264 tonnes in 2024, within guidance but down from 9,681 tonnes in 2023.

Q4 2024 sales increased 16% to 3,033 tonnes, while annual sales reached 9,600 tonnes. The company achieved significant milestones in 2024, including a 67% increase in mineral reserves and 64% in mineral resources, extending mine life to 31 years.

Market conditions showed weakness with Q4 2024 average benchmark V2O5 prices in Europe declining 21% year-over-year to $5.34/lb. For 2025, Largo projects production of 9,500-11,500 tonnes and sales of 7,500-9,500 tonnes, with Q1 2025 expected to see lower production due to heavy rainfall and slow post-maintenance ramp-up.

Largo (TSX: LGO) (NASDAQ: LGO) has finalized the formation of Storion Energy , a joint venture with Stryten Critical E-Storage, effective January 31, 2025. The partnership aims to establish a domestic supply chain for vanadium flow battery components and electrolyte manufacturing in the United States.

The joint venture combines Largo's high-quality vanadium supply, Largo Physical Vanadium Corp.'s electrolyte leasing model, and Stryten's U.S.-based manufacturing expertise. Both companies hold a 50% equity stake in Storion. As part of the transaction, Stryten has paid US$1 million to Largo and will contribute an additional US$6 million over time to fund operations.

The venture focuses on removing barriers to entry for battery manufacturers by providing domestically sourced, price-competitive components for the flow battery industry. This strategic collaboration aims to enhance grid stability and energy security while promoting the adoption of vanadium flow battery solutions.

Stryten Energy and Largo Inc. (LGO) have formed a joint venture called Storion Energy to establish domestic production of vanadium electrolyte for flow batteries. The venture aims to provide price-competitive components through a unique leasing model, leveraging Largo's position as the only operating vanadium mine in the Western Hemisphere.

The JV will focus on vanadium redox flow batteries (VRFB) for long-duration energy storage applications, supporting the DOE's goal of delivering reliable energy at $0.05/kWh by 2030. Through exclusive access to Largo Physical Vanadium Corp., Storion will offer a vanadium electrolyte leasing model to compete with lithium-ion battery costs.

VRFBs offer several advantages, including 20+ years lifespan with proper maintenance, infinite electrolyte recyclability, and scalability in power and capacity. The technology is particularly suited for utility-scale deployments and renewable energy storage applications.