- \n
- Revenues of $24.3 million in Q4 2024 vs. $44.2 million in Q4 2023; Revenues per pound sold1<\/sup> of $5.70 in Q4 2024 vs. $7.69 in Q4 2023; In addition, the Company received $13.6 million related to the delivery of 1,200 tonnes as part of its vanadium inventory supply agreement<\/b><\/li>\n
- Operating costs of $30.2 million in Q4 2024, 30% below Q4 2023; Adjusted cash operating costs excluding royalties per pound1<\/sup> of $3.05 in Q4 2024, 39% below Q4 2023, reflecting the success in cost reduction measures throughout 2024<\/b><\/li>\n
- Adjusted EBITDA1<\/sup> improved by 195% in Q4 2024 to $2.3 million and mining operations adjusted EBITDA1<\/sup> improved by 27% to $4.5 million from $3.5 million in Q4 2023, despite the negative impact of the maintenance shutdown in Q4 2024<\/b><\/li>\n
- Net loss of $13.0 million in Q4 2024, which included $2.4 million in non-recurring items vs. net loss of $13.3 million in Q4 2023, which included $5.9 million in non-recurring items; Basic loss per share of $0.19 in Q4 2024 vs. basic loss per share of $0.21 in Q4 2023<\/b><\/li>\n
- Revenues of $124.9 million in 2024, 37% below 2023; Revenues per pound sold1<\/sup> of $6.40 in 2024 vs. $8.66 in 2023; In addition, the Company received $13.6 million related to the delivery of 1,200 tonnes as part of its vanadium inventory supply agreement<\/b><\/li>\n
- Operating costs of $145.8 million in 2024, 17% below 2023; Adjusted cash operating costs excluding royalties per pound1<\/sup> of $4.05 in 2024, 22% lower than 2023, reflecting the company\u2019s cost reduction efforts throughout 2024<\/b><\/li>\n
- Adjusted EBITDA\u00b9 was a loss of $2.1 million compared to positive adjusted EBITDA1<\/sup> of $11.9 million in 2023<\/b><\/li>\n
- Net loss of $50.6 million in 2024, which included $18.7 million in non-recurring items vs. net loss of $32.4 million in 2023, which included $9.6 million in non-recurring items; Basic loss per share of $0.78 in 2024 vs. basic loss per share of $0.51 in 2023<\/b><\/li>\n
- V2<\/sub>O5<\/sub> production of 1,775 tonnes in Q4 2024 vs. 2,768 tonnes in Q4 2023; Annual V2<\/sub>O5<\/sub> production of 9,264 tonnes in 2024 vs. 9,681 tonnes in 2023; Within the Company\u2019s revised 2024 production guidance range of 9,000 \u2013 11,000 tonnes<\/b><\/li>\n
- Annual and Q4 2024 production was impacted by two kiln maintenance shutdowns during the year\u2014one in Q1 2024 as per the Company’s regular schedule, and another advanced from Q1 2025 into Q4 2024 to mitigate potential production disruptions typically associated with the early-year rainy season<\/b><\/li>\n
- Quarterly sales of 3,033 tonnes of V2<\/sub>O5<\/sub> equivalent (inclusive of 8 tonnes of purchased material and 1,200 tonnes related to the Company\u2019s vanadium inventory supply agreement) in Q4 2024, a 16% increase over the 2,605 tonnes in sold Q4 2023<\/b><\/li>\n
- Annual V2<\/sub>O5<\/sub> equivalent sales of 9,600 (inclusive of 415 tonnes of purchased material and 1,200 tonnes related to its vanadium inventory supply agreement) tonnes in 2024 vs. 10,396 tonnes in 2023; Within the Company\u2019s annual 2024 sales guidance of 8,700 \u2013 10,700 tonnes<\/b><\/li>\n
- The Company produced 10,292 tonnes of ilmenite concentrate in Q4 2024 and 44,863 tonnes in 2024; Quarterly ilmenite concentrate sold of 10,570 tonnes in Q4 2024 and 42,916 tonnes sold in 2024<\/b><\/li>\n<\/ul>\n
Vanadium Market Update<\/b><\/p>\n
- \n
- Vanadium prices continued to face downward pressure in European and Chinese markets, primarily driven by reduced demand from the steel and infrastructure sectors and persistent oversupply from Chinese and Russian producers; In Q4 2024, the average benchmark price for V\u2082O\u2085 in Europe was $5.34 per pound, representing a 17% decrease compared to Q4 2023<\/b><\/li>\n
- U.S. ferrovanadium pricing has experienced recent improvements, with prices rising 9% since the start of 2025, primarily driven by buying interest amid recent geopolitical developments and policy shifts impacting supply dynamics<\/b><\/li>\n
- As of March 20, 2025, the average benchmark ferrovanadium price per pound of V was $15.25 in the U.S. and as of March 21, 2025, the average benchmark price per pound of V\u2082O\u2085 was $5.13 in Europe<\/b><\/li>\n<\/ul>\n
TORONTO–(BUSINESS WIRE<\/a>)–
\nLargo Inc. (“Largo<\/b>” or the “Company<\/b>“) (TSX: LGO<\/b>) (NASDAQ: LGO<\/b>) today reported financial and operational results for the three and twelve months ended December 31, 2024. Amid challenging market conditions and declining vanadium prices, the Company has increased its focus on operational improvements, further cost reductions, and productivity enhancements at its Marac\u00e1s Menchen Mine. The Company achieved annual vanadium pentoxide (\u201cV\u2082O\u2085<\/b>\u201d) equivalent sales of 9,600 tonnes, with adjusted cash operating costs excluding royalties per pound\u00b9 sold improving significantly to $3.04 in Q4 2024 down from $5.04 in Q4 2023.\n<\/p>\nThis press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20250328844695\/en\/<\/a><\/p>\n
![\"Largo](\"https:\/\/mms.businesswire.com\/media\/20250328844695\/en\/2422695\/4\/LARGO_-_Banco_de_Imagens_2024_01_Dia-197.jpg\")
<\/p>\nLargo Reports Q4 and Full Year 2024 Financial Results; Announces Operational Turnaround Plan and Additional Cost Optimization Initiatives<\/p>\n<\/div>\n
\nDaniel Tellechea, Interim CEO and Director of Largo, stated: \u201cWe recognize the significant operational and market challenges Largo has encountered and are taking decisive steps to reposition the Company. While our cost reduction initiatives have already delivered measurable results\u2014such as a 30% reduction in operating costs in Q4 2024 compared to the prior year\u2014we continue to face production challenges and near-term financial pressures that require focused action.\u201d <\/i>He continued: \u201cAs part of our operational turnaround strategy, we\u2019ve implemented a number of critical initiatives in recent months to further enhance productivity and strengthen cost controls. With the appointment of Gordon Babcock and Luis Rend\u00f3n as Co-Chief Operating Officers in February 2025, we\u2019ve further intensified our focus on execution and efficiency across the business. Under their leadership, our team is actively identifying and acting on additional opportunities to improve operational performance.\u201d<\/i><\/p>\n
\nHe concluded: \u201cWe are also prioritizing efforts to reinforce our liquidity position and are pursuing a range of strategic and refinancing options to support ongoing operations. Driving a successful turnaround remains a company-wide priority, and we remain focused on taking the steps needed to help strengthen Largo\u2019s operational and financial foundation for the future.\u201d<\/i><\/p>\n
Financial and Operating Results \u2013 Highlights<\/b><\/p>\n
\n
\n \n (thousands of U.S. dollars, except as otherwise stated)<\/i><\/p>\n<\/td>\n
\n Three months ended<\/b><\/p>\n<\/td>\n
\n Year ended<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n Dec. 31, 2024<\/b><\/p>\n<\/td>\n
\n Dec. 31, 2023<\/b><\/p>\n<\/td>\n
\n Dec. 31, 2024<\/b><\/p>\n<\/td>\n
\n \nDec. 31, 2023\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Revenues<\/b><\/p>\n<\/td>\n
\n 24,268<\/b><\/p>\n<\/td>\n
\n \n44,170\n<\/p>\n<\/td>\n
\n 124,920<\/b><\/p>\n<\/td>\n
\n \n198,684\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Operating costs<\/b><\/p>\n<\/td>\n
\n (30,194)<\/b><\/p>\n<\/td>\n
\n \n(43,218)\n<\/p>\n<\/td>\n
\n (145,818)<\/b><\/p>\n<\/td>\n
\n \n(174,758)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Net income (loss)<\/b><\/p>\n<\/td>\n
\n (12,990)<\/b><\/p>\n<\/td>\n
\n \n(13,301)\n<\/p>\n<\/td>\n
\n (50,565)<\/b><\/p>\n<\/td>\n
\n \n(32,358)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Basic earnings (loss) per share<\/b><\/p>\n<\/td>\n
\n (0.19)<\/b><\/p>\n<\/td>\n
\n \n(0.21)\n<\/p>\n<\/td>\n
\n (0.78)<\/b><\/p>\n<\/td>\n
\n \n(0.51)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Adjusted EBITDA1<\/sup><\/b><\/p>\n<\/td>\n
\n 2,337<\/b><\/p>\n<\/td>\n
\n \n793\n<\/p>\n<\/td>\n
\n (2,076)<\/b><\/p>\n<\/td>\n
\n \n11,948\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Mining operations adjusted EBITDA1<\/sup><\/b><\/p>\n<\/td>\n
\n 4,466<\/b><\/p>\n<\/td>\n
\n \n3,503\n<\/p>\n<\/td>\n
\n 7,976<\/b><\/p>\n<\/td>\n
\n \n29,992\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Cash provided before working capital items (operating activities)<\/b><\/p>\n<\/td>\n
\n 18,563<\/b><\/p>\n<\/td>\n
\n \n43\n<\/p>\n<\/td>\n
\n 16,038<\/b><\/p>\n<\/td>\n
\n \n9,335\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Cash operating costs excl. royalties ($\/lb) 1<\/sup><\/b><\/p>\n<\/td>\n
\n 3.67<\/b><\/p>\n<\/td>\n
\n \n5.44\n<\/p>\n<\/td>\n
\n 4.84<\/b><\/p>\n<\/td>\n
\n \n5.30\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Adjusted cash operating costs excl. royalties1<\/sup> ($\/lb)<\/b><\/p>\n<\/td>\n
\n 3.05<\/b><\/p>\n<\/td>\n
\n \n5.04\n<\/p>\n<\/td>\n
\n 4.05<\/b><\/p>\n<\/td>\n
\n \n5.19\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Cash<\/b><\/p>\n<\/td>\n
\n 22,106<\/b><\/p>\n<\/td>\n
\n \n42,714\n<\/p>\n<\/td>\n
\n 22,106<\/b><\/p>\n<\/td>\n
\n \n42,714\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Debt<\/b><\/p>\n<\/td>\n
\n 92,280<\/b><\/p>\n<\/td>\n
\n \n75,000\n<\/p>\n<\/td>\n
\n 92,280<\/b><\/p>\n<\/td>\n
\n \n75,000\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Total mined \u2013 dry basis (tonnes)<\/b><\/p>\n<\/td>\n
\n 3,673,416<\/b><\/p>\n<\/td>\n
\n \n3,490,711\n<\/p>\n<\/td>\n
\n 13,949,665<\/b><\/p>\n<\/td>\n
\n \n14,864,394\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Total ore mined (tonnes)<\/b><\/p>\n<\/td>\n
\n 476,742<\/b><\/p>\n<\/td>\n
\n \n473,958\n<\/p>\n<\/td>\n
\n 2,249,759<\/b><\/p>\n<\/td>\n
\n \n1,752,982\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Effective grade of ore milled2<\/sup> (%)<\/b><\/p>\n<\/td>\n
\n 0.73<\/b><\/p>\n<\/td>\n
\n \n1.03\n<\/p>\n<\/td>\n
\n 0.88<\/b><\/p>\n<\/td>\n
\n \n1.04\n<\/p>\n<\/td>\n<\/tr>\n
\n \n V2<\/sub>O5<\/sub> equivalent produced (tonnes)<\/b><\/p>\n<\/td>\n
\n 1,775<\/b><\/p>\n<\/td>\n
\n \n2,768\n<\/p>\n<\/td>\n
\n 9,264<\/b><\/p>\n<\/td>\n
\n \n9,681\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Ilmenite concentrate produced (tonnes)<\/b><\/p>\n<\/td>\n
\n 10,292<\/b><\/p>\n<\/td>\n
\n \n8,970\n<\/p>\n<\/td>\n
\n 44,863<\/b><\/p>\n<\/td>\n
\n \n8,970\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
Key Highlights<\/b><\/p>\n
- \n
- \nDuring 2024, the Company recognized revenues of $118.5 million (2023 \u2013 $198.6 million) from the sales of 8,400 tonnes of V2<\/sub>O5<\/sub> equivalent (2023 \u2013 10,396 tonnes) as well as revenues from ilmenite sales of $6.4 million (2023 – $nil).\n<\/li>\n
- \nThe Company recorded a net loss of $50.6 million in 2024 compared with a net loss of $32.4 million in 2023, largely driven by a 37% decrease in revenues. This was partially offset by a decrease in certain expenses, most notably a 17% decrease in operating costs, as well as a 29% decrease in professional consulting and management fees, a 54% decrease in general and administrative expenses and a 45% decrease in technology start-up costs.\n<\/li>\n
- \nIn 2024, the Company\u2019s operating costs decreased by 17% to $30.2 million in 2024 compared to 43.2 million in 2023. The decrease in operating costs in 2024 was largely driven by a 34% decrease in direct mine and production costs. This decrease reflects the 19% decrease in vanadium sold in 2024, as well as the impact of the Company’s previously announced initiatives to reduce production costs and improve productivity. Further, shared mining and production costs up to the milling process are allocated between vanadium and ilmenite, which reduces the amount recognized in direct mine and production costs for vanadium.\n<\/li>\n
- \nAdjusted cash operating costs excluding royalties per pound1<\/sup>, which excludes the impact of inventory write-downs for produced products of $2.5 million for Q4 2024 (Q4 2023 \u2013 $nil), was $3.05 per lb, compared with $5.04 for Q4 2023. The decrease in unit costs seen in Q4 2024 compared with Q4 2023 is also largely due to the impact of the Company’s previously announced initiatives to reduce production costs and improve productivity, including reducing haulage distances, reducing the number of contractors and a comprehensive review of all contracts. The Company expects to continue seeing the benefits of these initiatives in its financial results going forward.\n<\/li>\n
- \nFor 2024, total professional, consulting, and management fees decreased by 29% compared to 2023, while other general and administrative expenses declined by 54%. These reductions reflect the Company’s continued emphasis on cost discipline, decreased activity and headcount at LCE following the initiation of the strategic review, and an expense recovery of $1.8 million primarily related to lower legal provisions. Additionally, technology start-up costs decreased by 45% in 2024 compared with 2023 primarily due to a decrease in activities at Largo Clean Energy Corp. (\u201cLCE<\/b>\u201d) in 2024 as the installation of its battery project nears conclusion.\n<\/li>\n
- \nSubsequent to Q4 2024, production in January 2025 was 392 tonnes of V2<\/sub>O5<\/sub> equivalent with 503 tonnes produced in February 2025. Production in January and February 2025 was impacted by temporarily mining lower-grade ore zones according to the mine sequencing plan, reduced mining equipment availability, and operational adjustments following the kiln refractory replacement completed in Q4 2024. V2<\/sub>O5<\/sub> equivalent sales were 687 tonnes in January 2025, with 551 tonnes sold in February 2025.\n<\/li>\n
- \nSubsequent to Q4 2024, ilmenite concentrate production was 2,897 tonnes of in January 2025 and 1,477 tonnes in February 2025 with sales of 4,397 tonnes in January 2025 and 2,255 tonnes in February 2025.\n<\/li>\n<\/ul>\n
\nThe information provided within this release should be read in conjunction with Largo’s annual consolidated financial statements for the years ended December 31, 2024 and 2023 and its management’s discussion and analysis for the year ended December 31, 2024 which are available on our website at www.largoinc.com<\/a> or on the Company\u2019s respective profiles at www.sedarplus.com<\/a> and www.sec.gov<\/a>.\n<\/p>\n
Operational Turnaround and Cost Optimization Strategy<\/b><\/p>\n
\nIn recent months, the Company has implemented several critical initiatives aimed at addressing operational challenges, enhancing productivity, and strengthening cost controls. Following the appointment of Gordon Babcock and Luis Rend\u00f3n as Co-Chief Operating Officers in February 2025, Largo has further increased its focus on operational execution and efficiencies. Under their leadership, the team is actively identifying additional areas for improvement and implementing targeted enhancements to drive increased performance. Successfully executing the Company’s operational turnaround remains a top priority and will require the collective efforts of the entire team.\n<\/p>\n
Key actions underway and priorities ahead include:<\/b><\/p>\n
- \n
- \nThe Company has initiated a turnaround program with its mining contractor, including a general operating fleet overhaul and equipment refurbishments, to resolve reliability and availability issues that impacted mining throughput rates in late 2024 and early 2025<\/p>\n
- \n
- \nImprovements in drilling efficiency and ore production rates have already been observed as of early March 2025\n<\/li>\n<\/ul>\n<\/li>\n
- \nOngoing optimization of pit access and streamlining material handling processes to support more consistent throughput and operational stability\n<\/li>\n
- \nWorking with geotechnical experts to optimize mining practices, including improved blasting techniques, fleet utilization, and pit infrastructure upgrades\n<\/li>\n
- \nIntroducing mechanized and automated solutions in ore processing and tailings management, aimed at enhancing efficiency and reducing operational bottlenecks\n<\/li>\n
- \nOptimizing crushing, milling and kiln operations as well as downstream processing plant efficiencies through improved processes, maintenance schedules and operational adjustments designed to increase productivity\n<\/li>\n
- \nStrengthening cost management through rigorous monitoring and control processes to ensure operating expenses remain within targeted budget levels\n<\/li>\n<\/ul>\n
\nThe Company recognizes that while its ongoing operational turnaround is a critical step forward, additional measures are needed to fully address the Company\u2019s broader financial headwinds. Market conditions, including a 21% decline in vanadium prices since December 31, 2023, and an elevated cost environment, have affected cash flows and financial forecasts. In response, the Company has taken decisive actions to strengthen its financial position, including ongoing cost reductions, operational efficiencies, and liquidity management. As a result of its cost reduction initiatives, the Company has recognized a 30% reduction in operating costs in Q4 2024 vs. Q4 2023. The Company is also actively working to improve its liquidity to support long-term goals, including exploring financing alternatives such as refinancing existing debt and securing additional capital through new debt facilities.\n<\/p>\n
\nThe Company will continue to monitor its progress and provide updates as needed. At this time, it will maintain its annual guidance ranges for 2025 and will reassess as operational improvements advance. Should any material changes to guidance be necessary, the Company will update the market accordingly.\n<\/p>\n
About Largo<\/b><\/p>\n
\nLargo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Marac\u00e1s Menchen Mine in Brazil. As one of the world\u2019s largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The Company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.\n<\/p>\n
\nLargo is also strategically invested in the long-duration energy storage sector through its 50% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S.\n<\/p>\n
- U.S. ferrovanadium pricing has experienced recent improvements, with prices rising 9% since the start of 2025, primarily driven by buying interest amid recent geopolitical developments and policy shifts impacting supply dynamics<\/b><\/li>\n
- Operating costs of $30.2 million in Q4 2024, 30% below Q4 2023; Adjusted cash operating costs excluding royalties per pound1<\/sup> of $3.05 in Q4 2024, 39% below Q4 2023, reflecting the success in cost reduction measures throughout 2024<\/b><\/li>\n