Largo Provides Update on its Operational Turnaround Progress; Delivers Improved May Production
Largo Provides Update on its Operational
Turnaround Progress; Delivers Improved
May Production
TORONTO--(BUSINESS WIRE)--June 25, 2025--Largo Inc. ("Largo" or the "Company")
(TSX: LGO) (NASDAQ: LGO) is pleased to provide an update on the progress of the
operational turnaround plans (see press release dated March 28, 2025), highlighted by increased
production rates for both vanadium pentoxide (“V₂O₅”) and ilmenite concentrate in May 2025.
As part of a continued focus on stabilizing and enhancing operational performance at its Maracás
Menchen Mine, the Company reports that V₂O₅ production in May 2025 was 835 tonnes,
representing a 75% increase compared to April 2025 production of 401 tonnes. Ilmenite
concentrate production for May 2025 was 3,025 tonnes, representing a 65% increase compared
to April 2025 production of 1,833 tonnes. These improvements continue to highlight the
effectiveness of measures implemented under the operational turnaround plans previously
announced.
The following initiatives contributed to improved production performance during the month of
May 2025:
Access to the 200-level area of disseminated ore was achieved, contributing significantly
to increased mine production volumes
Additional ore feed was sourced from the 110 and 120 levels at the bottom of the mine,
supporting higher throughput rates
Production drilling activities met monthly targets, and drilling progress remains on track
for June
The Company continues to focus on optimizing its resource recovery and has commenced the
reprocessing of its existing non-magnetic tailings ponds to extract both vanadium and ilmenite.
These tailings, initially reprocessed solely for ilmenite feedstock, are now being evaluated for
vanadium content, supporting dual-recovery streams. Additionally, the Company plans to
enhance the existing vanadium recovery process of its iron-rich calcines and silica cake residues
to extract additional vanadium, which would be reprocessed into V₂O₅. In addition to driving
operational efficiency at its Maracás Menchen Mine, these efforts are expected to strengthen the
Company’s efforts in sustainable mining practices by reducing waste material and recovering
value from existing tailings.
The Company’s outlook for June 2025 remains positive, with production currently trending
above forecast at the time of this release. The Company expects to achieve its production
guidance range of 9,500 to 11,500 tonnes of V₂O₅ for 2025.
Daniel Tellechea, Interim CEO of Largo stated: "We are encouraged by the improved production
results achieved in May, which represent an important step forward in our operational
turnaround. The progress made to date, particularly the increased access to key mining areas
and enhanced plant stability, suggests that May may represent an inflection point for our
operational turnaround progress. While there is more work to be done, we expect a more
consistent production profile going forward as we continue executing our plan and monitoring
performance closely.”
Corporate Update
On June 9, 2025, the Company received a default notice from a counterparty for failure to deliver
900 tonnes of V₂O₅ at the scheduled time (see press release dated October 21, 2024). The same
counterparty has also alleged that some of the V₂O₅ delivered previously has failed to meet the
agreed upon specifications. The Company is currently reviewing the notice and assessing its
available options. An update will be provided as further disclosure becomes appropriate or
required.
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;
the effect of tariffs on the Company’s sales and other business; costs of future activities and
operations, including, without limitation, the effect of inflation and exchange rates; 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
Investor Relations
Alex Guthrie
Director, Investor Relations
+1.416.861.9778