Largo Announces $10 Million Factoring Facility to Accelerate Receivables and Support Working Capital
Largo Announces $10 Million Factoring Facility to
Accelerate Receivables and Support Working
Capital
All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Monetizes accounts receivable from vanadium product sales to support near-term working capital
Initial facility of up to $10 million, with potential expansion to $30 million subject to customer and
credit approvals
TORONTO--(BUSINESS WIRE)--June 11, 2025--Largo Inc. ("Largo" or the "Company") (TSX: LGO)
(NASDAQ: LGO) today announces that its wholly owned subsidiary, Largo Resources USA ("LUSA"), has
entered into a non-recourse factoring facility dated June 10, 2025 (the "Facility") with a well-established third-
party factoring company (the "Factor") for the sale of certain accounts receivable.
Under the terms of the Facility, LUSA may sell eligible accounts receivable to the Factor for receipts of up to
$10 million. The Factor will advance 85% of the invoice value, with commission rates ranging from 0.51% for
invoices up to 30 days, to 1.37% for those up to 90 days, depending on customer payment terms. All factored
invoices are on a non-recourse basis, with the Factor assuming credit risk. The Company is working with the
Factor to establish similar receivables purchase facilities for Largo Inc. and Largo Commodities Trading Ltd.,
which is expected to increase the overall size of the Facility, subject to the inclusion of additional customers and
credit approvals. The Facility has an initial term of two years, and the Factor may terminate it with 90 days' prior
written notice or immediately in the event of default.
Daniel Tellechea, Interim CEO of Largo stated: "This Facility allows us to access liquidity more quickly by
monetizing receivables tied to vanadium shipments, which can take between 30 and 90 days to convert to cash.
Improving working capital efficiency is a necessary step as we work through our operational turnaround plan.”
He continued: “This Facility is expected to better align cash inflows with expenditures and ensures we have
additional flexibility to support day-to-day operations while continuing our efforts to stabilize production and
improve sales.”
CIRQUE Capital, Inc. acted as the Company’s financial advisor and arranger in connection with the Facility and
will receive certain custodial fees pursuant to the terms of the Facility.
About Largo
Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-
class Maracás Menchen Mine in Brazil. As one of the world’s 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.
Largo 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.
Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol
"LGO". For more information on the Company, please visit www.largoinc.com.
Cautionary Statement Regarding Forward-looking Information:
This press release contains “forward-looking information” and “forward-looking statements” within the
meaning of applicable Canadian and United States securities legislation. Forward-looking information in this
press release includes, but is not limited to, statements with respect to the timing and amount of estimated future
production and sales; the future price of commodities; costs of future activities and operations, including,
without limitation, the effect of inflation and exchange rates; the effect of tariffs; the effect of unforeseen
equipment maintenance or repairs on production; the ability to produce high purity V2O5 and V2O3 according
to customer specifications; the extent of capital and operating expenditures; the ability of the Company to make
improvements on its current short-term mine plan; and the impact of global delays and related price increases
on the Company’s global supply chain and future sales of vanadium products.
The following are some of the assumptions upon which forward-looking information is based: that general
business and economic conditions will not change in a material adverse manner; demand for, and stable or
improving price of V2O5 and other vanadium products, ilmenite and titanium dioxide pigment; receipt of
regulatory and governmental approvals, permits and renewals in a timely manner; that the Company will not
experience any material accident, labour dispute or failure of plant or equipment or other material disruption in
the Company’s operations at the Maracás Menchen Mine or relating to Largo Clean Energy, specially in respect
of the installation and commissioning of the EGPE project; the availability of financing for operations and
development; the availability of funding for future capital expenditures; the ability to replace current funding on
terms satisfactory to the Company; the ability to mitigate the impact of heavy rainfall; the reliability of
production, including, without limitation, access to massive ore, the Company’s ability to procure equipment,
services and operating supplies in sufficient quantities and on a timely basis; that the estimates of the resources
and reserves at the Maracás Menchen Mine are within reasonable bounds of accuracy (including with respect to
size, grade and recovery and the operational and price assumptions on which such estimates are based); the
accuracy of the Company’s mine plan at the Maracás Menchen Mine; that the Company’s current plans for
ilmenite can be achieved; the Company’s ability to protect and develop its technology; the Company’s ability to
maintain its IP; the competitiveness of the Company’s product in an evolving market; the Company’s ability to
attract and retain skilled personnel and directors; the ability of management to execute strategic goals; that the
Company will enter into agreements for the sales of vanadium, ilmenite and TiO2 products on favourable terms
and for the sale of substantially all of its annual production capacity; and receipt of regulatory and
governmental approvals, permits and renewals in a timely manner.
Forward-looking statements can be identified by the use of forward-looking terminology such as “plans”,
“expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements
that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be
achieved”, although not all forward-looking statements include those words or phrases. In addition, any
statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of
future events or circumstances contain forward-looking information. Forward-looking statements are not
historical facts nor assurances of future performance but instead represent management's expectations,
estimates and projections regarding future events or circumstances. Forward-looking statements are based on
our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such
information is stated, subject to known and unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of Largo to be materially different from those
expressed or implied by such forward-looking statements, including but not limited to those risks described in
the annual information form of Largo and in its public documents filed on www.sedarplus.ca and available on
www.sec.gov from time to time. Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made. Although management of Largo has attempted to identify
important factors that could cause actual results to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There
can be no assurance that such statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance
on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in
accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of
Largo’s annual and interim MD&A which also apply.
Trademarks are owned by Largo Inc.
Contacts
For further information, please contact:
Investor Relations
Alex Guthrie
Director, Investor Relations
+1.416.861.9778