Largo Reports Q1 2026 Financial Results Reflecting Strong Operating Performance at Maracás Menchen Mine and the Impact of High U.S. Import Tariffs on Brazilian Products in Early 2026 All amounts expressed are in U.S. dollars, denoted by "$".
Largo Reports Q1 2026 Financial Results
Reflecting Strong Operating Performance at
Maracás Menchen Mine and the Impact of High
U.S. Import Tariffs on Brazilian Products in
Early 2026
All amounts expressed are in U.S. dollars, denoted by "$".
Toronto, Ontario--(Newsfile Corp. - May 14, 2026) - Largo Inc. (
TSX: LGO
) (
NASDAQ: LGO
) ("
Largo
"
or the "
Company
"), the world's largest primary vanadium producer, today announced financial and
operating results for the three months ended March 31, 2026.
Mr. Daniel Tellechea, Co-Chief Executive Officer of Largo, stated:
"Q1 2026 reflected continued
operating improvements at Maracás Menchen and a stronger production profile compared with the
same period last year. We achieved V
2
O
5
equivalent production at the upper end of our quarterly
guidance range, supported by improved mine access, stronger ore availability, and greater operating
stability at the plant. Our focus remains on disciplined execution of the mine plan, cost control, and
continued operational consistency."
Mr. Alberto Arias, Co-Chief Executive Officer of Largo, added:
"The operating results of Q1 2026 reflect
a stronger operating base for Largo, but sales were still affected by the impact of the high U.S. tariffs
on Brazilian imports in the earlier part of the quarter. We are actively working to translate this improved
production into higher sales, supported by recent positive trends in the vanadium market. The
reduction of U.S. tariffs on Brazilian products in February has improved Largo's ability to more actively
supply the high-purity market, particularly the aerospace sector, as well as the U.S. ferrovanadium
market. Due to the timing of our sales contracts, the benefits of these developments should begin to
be reflected in Q2 2026. While the U.S. ferrovanadium market has recently shown signs of
rebalancing, we believe Largo remains well positioned to serve these markets as commercial
conditions normalize."
Q1 2026 Highlights
Operation Highlights
Vanadium pentoxide ("
V
2
O
5
") production in Q1 2026 increased 101.7% to 2,616 tonnes vs. 1,297
tonnes in Q1 2025. Production in the quarter was at the upper end of the Company's quarterly
guidance range of 2,400 to 2,700 tonnes and was supported by better ore availability and
operational stability in the industrial plant. Largo continues to expect full-year 2026 V
2
O
5
equivalent
production of 10,500 to 12,000 tonnes.
Total ore mined in Q1 2026 increased 90.8% to 852,046 tonnes vs. 446,614 tonnes mined in Q1
2025. The effective ore grade
1
was 0.48% V
2
O
5
in Q1 2026 vs. 0.41% in Q1 2025.
Global recovery
2
in Q1 2026 was 76.3% compared to 77.8% in Q1 2025.
Ilmenite concentrate production in Q1 2026 increased 86.8% to 11,514 tonnes vs. 6,162 tonnes in
Q1 2025.
In April 2026 production totaled 881 tonnes of V
2
O
5
equivalent and 5,536 tonnes of ilmenite
concentrate.
Commercial Highlights
Sales in Q1 2026 totaled 2,141 tonnes of V
2
O
5
equivalent, including 120 tonnes related to the
Company's inventory supply agreement, up 3.6% from the 2,066 tonnes sold in Q1 2025.
Produced V
2
O
5
equivalent pounds sold increased to 4,456 thousand lbs in Q1 2026, excluding
265 thousand lbs related to the Company's inventory supply agreement, compared with 4,206
thousand lbs in Q1 2025. Commercial conditions improved during the quarter, particularly in the
U.S. ferrovanadium ("
FeV
") market, supported by tightening supply conditions.
Sales of ilmenite concentrate, a by-product of the vanadium operation, in Q1 2026 increased
32.7% to 11,477 tonnes vs. 8,647 tonnes in Q1 2025.
Vanadium market conditions improved during Q1 2026. In Europe, the average benchmark price
for V
2
O
5
was $5.69/lb in Q1 2026 vs. $5.26/lb in Q1 2025, while the average benchmark price for
FeV was $26.60/kg vs. $24.26/kg. During the quarter, FeV prices in the U.S. market increased by
56% compared with the same period in the prior year, driven primarily by tightening global supply
conditions.
Financial Highlights
Revenues totaled $27.5 million in Q1 2026 vs. $28.2 million in Q1 2025. The Company recognized
$25.8 million in vanadium sales revenue and $1.7 million in ilmenite sales revenue during the
quarter. Revenues in the quarter continued to reflect the impact of the 50% U.S. import tariff on
Brazilian products, which was reduced to 10% in the middle of the quarter.
Revenues per pound sold of V
2
O
5
equivalent were $5.80 in Q1 2026, down from $6.04 in Q1
2025.
Adjusted cash operating costs excluding royalties
1
remained flat compared to Q1 2025 at $3.90/lb
sold in Q1 2026. Cash operating costs excluding royalties were $4.27/lb in Q1 2026 vs. $6.54/lb in
Q1 2025, reflecting improved mine performance and the absence of the kiln and plant stoppages
experienced in Q1 2025.
Cash used before working capital items
1
was $3.0 million in Q1 2026, compared with $8.5 million
in Q1 2025.
Q1 2026 adjusted EBITDA
1
was negative $4.3 million, compared to negative $2.8 million in Q1
2025, while Mining Operations Adjusted EBITDA
1
was negative $2.3 million, compared to
negative $0.7 million in Q1 2025.
In Q1 2026, Largo recorded a net loss of $4.7 million for Q1 2026, compared to a net loss of $9.2
million in Q1 2025. This improvement was mainly due to a 19% decrease in operating costs, a
28% decrease in other general and administrative expenses, and a $4.7 million recovery of
vanadium assets, partially offset by a 3% decrease in revenues, a 16% decrease in foreign
exchange gain, and a 63% increase in finance costs.
Basic loss per share of $0.07 in Q1 2026 vs. $0.14 in Q1 2025.
The Company ended Q1 2026 with a cash balance of $11.2 million and debt of $108.4 million.
Financial and Operational Results - Highlights
thousands of U.S. dollars, except as otherwise stated
Q1 2026
Q1 2025
Change
Revenues
27,529
28,235
-2.5%
Operating costs
(34,494
)
(42,477
)
-18.8%
Net loss
(4,730
)
(9,205
)
-48.6%
Basic loss per share
(0.07
)
(0.14
)
-50.0%
Adjusted EBITDA
1
(4,340
)
(2,774
)
+56.4%
Mining operations adjusted EBITDA
1
(2,276
)
(697
)
+226.5%
Cash provided (used) before working capital items
(3,000
)
(8,492
)
-64.7%
Cash operating costs excl. royalties
1
($/lb)
4.25
6.54
-35.0%
Adjusted cash operating costs excl. royalties
1
($/lb)
3.90
3.88
0.52%
Cash
11,204*
9,716**
+15.3%
Debt
108,367*
107,066**
+1.2%
Total mined - dry basis (tonnes)
4,818,359
3,933,242
+22.5%
Total ore mined (tonnes)
852,046
446,614
+90.8%
Effective grade
2
of ore mined (%)
0.48
0.41
+17.1%
V
2
O
5
equivalent produced (tonnes)
2,616
1,297
+101.7%
V
2
O
5
equivalent sales (tonnes)
2,141
2,066
+3.6%
Ilmenite concentrate produced (tonnes)
11,514
6,162
+86.8%
Ilmenite concentrate sold (tonnes)
11,477
8,647
+32.7%
* As of March 31, 2026.
** As of March 31, 2025
1 The cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, Adjusted EBITDA, Mining operations adjusted
EBITDA, revenues per pound
sold are reported on a non-GAAP basis. Refer to the "Non-GAAP Measures" section of this press release. Revenues
per pound sold are calculated based on the quantity of V
2
O
5
sold during the stated period.
2 Eff
ective grade represents the percentage of magnetic material mined multiplied by the percentage of V
2
O
5
in the magnetic concentrate
Subsequent Events
April 2026 Sales and Production
Subsequent to Q1 2026, production in April 2026 totaled 930 tonnes of V
2
O
5
equivalent and 4,116
tonnes of ilmenite concentrate. Sales in April 2026 totaled 1,230 tonnes of V
2
O
5
equivalent and 2,011
dry tonnes of ilmenite, reflecting a solid start to Q2 2026 on both operational and commercial fronts.
At-The-Market Equity Offering Program
On January 8, 2026, the Company announced the launch of an at-the-market equity offering program (the
"ATM Program"). This allows the Company to periodically issue and sell common shares on The
Nasdaq Stock Market, with total gross proceeds of up to $60.0 million. By March 31, 2026, the
Company had issued 13,811,298 common shares through the ATM Program, resulting in net proceeds
of $19,707,264 at an average price of $1.4060 per share.
Impact of U.S. Tariff Relief
Following the reduction of U.S. tariffs from 50% to 10% in February 2026, Largo resumed commercial
activity for its high-purity vanadium products and began selling the high-purity inventories accumulated in
bonded warehouses in Baltimore, Maryland, as well as in the European Union. The tariff relief, together
with materially stronger vanadium pricing in the U.S., has improved the Company's ability to actively
supply both the high-purity vanadium market, particularly the aerospace segment, and the U.S. FeV
market, where the number of origins able to serve customers remains limited.
Largo is also increasing sales into the U.S. market to benefit from the significant price premium for FeV
in the U.S. relative to other regions. Due to the lag in price realization on reported sales, an important
portion of the recent price increase is expected to be reflected in Q2 2026 sales revenues. In addition,
most of the sales of the high-purity inventories accumulated in bonded warehouses in Baltimore are
expected to be reflected in the second quarter, as those sales were invoiced in April and May 2026
following the U.S. tariff reduction in the middle of the first quarter. As a result, the Company expects
stronger revenue realization in the second quarter than would have been the case had those units been
sold in the first quarter.
Copper and Platinum Group Metals
On April 10, 2026, Largo filed a request before the Brazilian Mining Agency ("ANM") to produce and sell
copper, platinum group metals, nickel and cobalt as by-products within its mining activities at the
Maracás Menchen Mine using its existing ore processing infrastructure. The filing follows previously
disclosed positive metallurgical testing and technical evaluation work and represents an important step
in advancing the potential inclusion of these additional by-products within Largo's operations.
The Company believes this initiative may further enhance the long-term value of the Maracás Menchen
Mine by leveraging existing infrastructure and expanding the potential contribution of its mineral
endowment, subject to the applicable regulatory process and any additional technical, environmental and
operational assessments that may be required.
Vanadium Market Update
Vanadium market conditions improved in Q1 2026, particularly in ferrovanadium markets. In Europe, the
average benchmark price of V
2
O
5
was $5.69/lb in Q1 2026, up from $5.26/lb in Q1 2025, while the
average benchmark price of FeV was $26.60/kg in Q1 2026, up from $24.26/kg in Q1 2025. As of
March 31, 2026, the average benchmark price of V
2
O
5
in Europe was $5.93/lb, compared with $5.08/lb
as of March 31, 2025, while the average benchmark price of FeV in Europe was $29.35/kg, compared
with $24.25/kg as of March 31, 2025.
During Q1 2026, Largo observed a 56% increase in FeV prices in the U.S. market compared with the
same period in the prior year. This increase was driven primarily by tighter global supply conditions.
More recently, vanadium market conditions have shown signs of rebalancing, with prices correcting from
earlier highs, particularly in the U.S. ferrovanadium market. The Company remains active across key
markets amid evolving geopolitical factors and continues to monitor developments closely as conditions
evolve across regions.
2026 Guidance
Largo is reiterating its 2026 vanadium guidance as previously disclosed on February 5, 2026. The
Company continues to expect annual V
2
O
5
equivalent production of 10,500 to 12,000 tonnes, annual
V
2
O
5
equivalent sales of 7,500 to 9,500 tonnes, and adjusted cash operating costs excluding royalties of
$3.50/lb to $4.50/lb sold.
The Company's 2026 guidance is presented on a business-as-usual basis and reflects management's
current expectations for improved mine access, higher ore availability, and the continued impact of
operational enhancements implemented during 2025. The Company has also committed a significant
portion of its expected monthly production in 2026 to sales of its VPURE+® and VPURE® products, as
well as FeV produced from VPURE®. Sales guidance does not include purchased products or any sold
material related to the Company's vanadium inventory supply agreement.
2026 Guidance
Annual V
2
O
5
equivalent production
tonnes
10,500 - 12,000
Annual V
2
O
5
equivalent sales
1
tonnes
7,500 - 9,500
Adjusted cash operating costs excluding royalties per pound
2
$/lb
3.50 - 4.50
Vanadium
Q1
Q2
Q3
Q4
2026
Low
High
Low
High
Low
High
Low
High
Low
High
Production (tonnes V
2
O
5
)
2,400
2,700
2,500
3,000
2,600
3,100
3,000
3,200
10,500
12,000
Sales
1
(tonnes V
2
O
5
)
1,500
2,000
2,000
2,500
2,000
2,500
2,000
2,500
7,500
9,500
1
.
Sales guidance does not include purchased products or any sold material related to the Company's vanadium inventory supply agreement.
2
.
Adjusted cash operating costs excluding royalties per pound is a non-GAAP ratio with no standard meaning under IFRS, and may not be
comparable to similar financial measures disclosed by other issuers. Refer to the "Non-GAAP Measures" section of this press release.
The Company continues to monitor market conditions, geopolitical developments, and trade-related
uncertainties, including the potential impact of new tariffs on imports from Brazil to the U.S., and the
impact of rising energy costs, particularly oil, on the Company's production costs, and may revise its
guidance if operating assumptions or market conditions materially change.
The information provided within this release should be read in conjunction with Largo's unaudited
condensed Interim consolidated financial statements for the quarter ended March 31, 2026 and March
31, 2025 and its management's discussion and analysis ("
MD&A
") for the quarter ended March 31,
2026, which are available on the Company's website and on its profiles on SEDAR+ and EDGAR at
www.sec.gov
.
About Largo
Largo is the world's largest primary vanadium producer and a globally recognized supplier of high-quality
vanadium 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 clean energy storage sector through its 37.4% 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.
The Company also holds a 100% interest in the Northern Dancer Tungsten-Molybdenum property
located in the Yukon Territory, Canada, and a 100% interest in the Currais Novos Tungsten Tailing
Project near Natal, Brazil. Preliminary economic assessments were completed for each asset in 2011.
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
.
###
For further information, please contact:
Investor Relations
Vera Abdo
Investor Relations Consultant
+1.640.223.6956
Cautionary Statement Regarding Forward-looking Information:
This press release contains "forward-looking information" and "forward-looking statements" within the
meaning of applicable securities legislation. Forward-looking information in this press release may
include, but is not limited to, the ability of the Company to continue as a going concern, the ability of
the Company to keep the Maracás Menchen Mine operating, the timing and amount of estimated
future production and sales; the future price of commodities; Company's positioning to supply FeV to
the U.S. market pending potential tariff developments; the impact of reduced tariffs on the U.S.
vanadium market and the Company's ability to capitalize on such reduction; the future of FeV prices
and the Company's ability to benefit from the strengthening of those prices; the Company's ability to
explore and commercialize copper and PMGs concentrates; the Company's 2026 guidance; the
Company's future strategy; the Company's ability to benefit from reductions in U.S. tariff barriers; the
impact of potential future changes in U.S. tariffs; the Company's belief that it remains well positioned
to serve key markets as commercial conditions normalize; expectations regarding stronger revenue
realization, including in Q2 2026; the Company's ability to explore, obtain regulatory approvals for,
produce and commercialize copper, platinum group metals, nickel and cobalt as by products within its
mining activities at the Maracas Menchen Mine and the potential benefits thereof;
the Company's
expectations and plans in respect of the at-the-market offering;
and management's expectations for
improved mine access, higher ore availability and the impact of operational enhancements
implemented during 2025.
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 V
2
O
5
and other vanadium products, ilmenite and titanium dioxide
pigment; that the current U.S. tariff rate on Brazilian imports will remain at or near current levels;
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; the availability
of financing for operations and development; the Company's ability to fund operations and meet its
financial obligations as they come due; 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; the ability to obtain funding
through government grants and awards for the Green Energy sector; that the Company's current plans
for vanadium and 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; that the Company will enter into agreements for the sales of vanadium and
ilmenite on favourable terms and for the sale of substantially all of its annual production capacity; the
Company's ability to attract and retain skilled personnel and directors; the ability of management to
execute strategic goals; uncertainty regarding future sales volumes and customer demand; changes
in global trade policies, including the imposition of tariffs or other trade restrictions by the United
States or other jurisdictions.
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.
Non-GAAP Measures
The Company uses certain non-GAAP measures, which are described in the following section. Non-
GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS,
the Company's GAAP, and might not be comparable to similar financial measures disclosed by other
issuers. These measures are intended to provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Management believes that non-IFRS financial measures, when supplementing measures determined in
accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance
of the Company.
Revenues Per Pound
The Company refers to revenues per pound sold, V
2
O
5
revenues per pound of V
2
O
5
sold, V
2
O
3
revenues per pound of V
2
O
3
sold and FeV revenues per kg of FeV sold, which are non-GAAP financial
measures that are used to provide investors with information about a key measure used by management
to monitor performance of the Company.
These measures, along with cash operating costs, are considered to be key indicators of the Company's
ability to generate operating earnings and cash flow from its Maracás Menchen Mine and sales
activities. These measures differ from measures determined in accordance with IFRS and are not
necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS.
The following table provides a reconciliation of revenues per pound sold, V
2
O
5
revenues per pound of
V
2
O
5
sold, V
2
O
3
revenues per pound of V
2
O
3
sold and FeV revenues per kg of FeV sold to revenues
and the revenue information presented in note 19 as per Q1 2026 unaudited condensed interim
consolidated financial statements.
Three months ended
March 31,
2026
March 31,
2025
Revenues - V
2
O
5
produced
1
$
11,615
$
12,133
V
2
O
5
sold - produced (000s lb)
2,292
2,119
V
2
O
5
revenues per pound of V
2
O
5
sold - produced ($/lb)
$
5.07
$
5.73
Revenues - V
2
O
5
purchased
1
-
-
V
2
O
5
sold - purchased (000s lb)
-
-
V
2
O
5
revenues per pound of V
2
O
5
sold - purchased ($/lb)
-
-
Revenues - V
2
O
5
1
$
11,615
$
12,133
V
2
O
5
sold (000s lb)
2,292
2,119
V
2
O
5
revenues per pound of V
2
O
5
sold ($/lb)
$
5.07
$
5.73
Revenues - V
2
O
3
produced
1
-
$
1,296
V
2
O
3
sold - produced (000s lb)
-
165
V
2
O
3
revenues per pound of V
2
O
3
sold - produced ($/lb)
-
$
7.85
Revenues - FeV produced
1
$
14,234
11,712
FeV sold - produced (000s kg)
656
574
FeV revenues per kg of FeV sold - produced ($/kg)
21.70
20.40
Revenues - FeV purchased
1
-
$
2,356
FeV sold - purchased (000s kg)
-
105
FeV revenues per kg of FeV sold - purchased ($/kg)
-
$
22.44
Revenues - FeV
1
$
14,234
$
14,068
FeV sold (000s kg)
656
679
FeV revenues per kg of FeV sold ($/kg)
21.70
20.72
Revenues
1
$
25,849
$
27,497
V
2
O
5
equivalent sold (000s lb)
4,456
4,555
Revenues per pound sold ($/lb)
5.80
$
6.04
Three months ended
March 31,
2026
March 31,
2025
1
.
Quarter ended March 31 as per note 19 of the Q1 2026 unaudited condensed interim consolidated financial statements.
Cash Operating Costs, Cash Operating Costs Excluding Royalties and Adjusted Cash
Operating Costs Excluding Royalties
The Company refers to cash operating costs per pound, cash operating costs excluding royalties per
pound and adjusted cash operating costs excluding royalties per pound, which are non-GAAP ratios
based on cash operating costs, cash operating costs excluding royalties and adjusted cash operating
costs excluding royalties, which are non-GAAP financial measures, in order to provide investors with
information about a key measure used by management to monitor performance. This information is used
to assess how well the Maracás Menchen Mine is performing compared to its plan and prior periods,
and to also assess its overall effectiveness and efficiency.
Cash operating costs includes mine site operating costs such as mining costs, plant and maintenance
costs, sustainability costs, mine and plant administration costs, royalties and sales, general and
administrative costs (all for the Mine properties segment), but excludes depreciation and amortization,
share-based payments, foreign exchange gains or losses, commissions, reclamation, capital
expenditures and exploration and evaluation costs. Operating costs not attributable to the Mine
properties segment are also excluded, including conversion costs, product acquisition costs, distribution
costs and inventory write-downs.
Cash operating costs excluding royalties is calculated as cash operating costs less royalties.
Adjusted cash operating costs excluding royalties is calculated as cash operating costs excluding
royalties less write-downs of produced products.
Cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash
operating costs excluding royalties per pound are obtained by dividing cash operating costs, cash
operating costs excluding royalties and adjusted cash operating costs excluding royalties, respectively,
by the pounds of vanadium equivalent sold that were produced by the Maracás Menchen Mine.
Cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding
royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and
adjusted cash operating costs excluding royalties per pound, along with revenues, are considered to be
key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás
Menchen Mine. These measures differ from measures determined in accordance with IFRS, and are not
necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS.
The following table provides a reconciliation of cash operating costs, cash operating costs excluding
royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash