The following is a summary of the Largo Inc. (LGO) Q3 2024 Earnings Call Transcript:
Financial Performance:
Largo reported Q3 revenues of $29.9 million, with vanadium sales contributing $27.2 million and ilmenite sales contributing $2.7 million.
Operating costs decreased by 31% year-over-year to $29.5 million.
The company experienced a net loss of $10.1 million for the quarter, showing improvement over last year's net loss of $11.9 million.Adjusted EBITDA for mining operations was $2.4 million, down slightly from $2.7 million in Q3 2023.
Business Progress:
Largo achieved its highest quarterly vanadium production in seven quarters at 3,072 tonnes, a 42% increase from the previous year.
Ilmenite production increased significantly, reaching 16,383 tonnes, marking a 90% increase from the previous quarter.
A vanadium supply agreement was announced that provides additional liquidity of $23.5 million from vanadium inventories.
Progress in optimizing mining operations and improving the global V2O5 recovery rate to 81.1%.
Opportunities:
Largo's strategy to enhance direct sales to end users, especially in North America, is expected to strengthen its market position.
Anticipated revenue growth from the ilmenite business, which is seen as a stable and diversified revenue stream alongside the vanadium operations.
Risks:
Soft vanadium demand in Europe and Asia due to market oversupply, which impacts pricing and overall demand in these regions.
Expected impact on Q4 production due to kiln maintenance scheduled to coincide with the rainy season, leading to higher operating costs and potentially lower production output.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
