Largo Reports Q4 and Full Year 2024 Financial Results; Announces Operational Turnaround Plan and Additional Cost Optimization Initiatives
Largo Reports Q4 and Full Year 2024
Financial Results; Announces Operational
Turnaround Plan and Additional Cost
Optimization Initiatives
All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Q4, Full Year 2024 and Other Highlights
Revenues of $24.3 million in Q4 2024 vs. $44.2 million in Q4 2023; Revenues per
pound sold1 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
Operating costs of $30.2 million in Q4 2024, 30% below Q4 2023; Adjusted cash
operating costs excluding royalties per pound1 of $3.05 in Q4 2024, 39% below Q4
2023, reflecting the success in cost reduction measures throughout 2024
Adjusted EBITDA1 improved by 195% in Q4 2024 to $2.3 million and mining
operations adjusted EBITDA1 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
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
Revenues of $124.9 million in 2024, 37% below 2023; Revenues per pound sold 1 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
Operating costs of $145.8 million in 2024, 17% below 2023; Adjusted cash operating
costs excluding royalties per pound1 of $4.05 in 2024, 22% lower than 2023,
reflecting the company’s cost reduction efforts throughout 2024
Adjusted EBITDA¹ was a loss of $2.1 million compared to positive adjusted
EBITDA1 of $11.9 million in 2023
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
V2O5 production of 1,775 tonnes in Q4 2024 vs. 2,768 tonnes in Q4 2023; Annual
V2O5 production of 9,264 tonnes in 2024 vs. 9,681 tonnes in 2023; Within the
Company’s revised 2024 production guidance range of 9,000 – 11,000 tonnes
Annual and Q4 2024 production was impacted by two kiln maintenance shutdowns
during the year—one 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
Quarterly sales of 3,033 tonnes of V2O5 equivalent (inclusive of 8 tonnes of
purchased material and 1,200 tonnes related to the Company’s vanadium inventory
supply agreement) in Q4 2024, a 16% increase over the 2,605 tonnes in sold Q4 2023
Annual V2O5 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’s annual 2024 sales guidance of
8,700 – 10,700 tonnes
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
Vanadium Market Update
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 V₂O₅ in Europe was $5.34 per pound, representing
a 17% decrease compared to Q4 2023
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
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 V₂O₅ was $5.13 in Europe
TORONTO--(BUSINESS WIRE)--March 28, 2025--Largo Inc. ("Largo" or the "Company")
(TSX: LGO) (NASDAQ: LGO) 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 Maracás Menchen Mine. The
Company achieved annual vanadium pentoxide (“V₂O₅”) equivalent sales of 9,600 tonnes, with
adjusted cash operating costs excluding royalties per pound¹ sold improving significantly to
$3.04 in Q4 2024 down from $5.04 in Q4 2023.
Daniel Tellechea, Interim CEO and Director of Largo, stated: “We recognize the significant
operational and market challenges Largo has encountered and are taking decisive steps to
reposition the Company. While our cost reduction initiatives have already delivered measurable
results—such as a 30% reduction in operating costs in Q4 2024 compared to the prior year—we
continue to face production challenges and near-term financial pressures that require focused
action.” He continued: “As part of our operational turnaround strategy, we’ve implemented a
number of critical initiatives in recent months to further enhance productivity and strengthen
cost controls. With the appointment of Gordon Babcock and Luis Rendón as Co-Chief Operating
Officers in February 2025, we’ve further intensified our focus on execution and efficiency across
the business. Under their leadership, our team is actively identifying and acting on additional
opportunities to improve operational performance.”
He concluded: “We are also prioritizing efforts to reinforce our liquidity position and are
pursuing a range of strategic and refinancing options to support ongoing operations. Driving a
successful turnaround remains a company-wide priority, and we remain focused on taking the
steps needed to help strengthen Largo’s operational and financial foundation for the future.”
Financial and Operating Results – Highlights
(thousands of U.S. dollars, except as otherwise stated)
Three months ended Year ended
Dec. 31,
2024
Dec. 31,
2023
Dec. 31,
2024
Dec. 31,
2023
Revenues 24,268 44,170 124,920 198,684
Operating costs (30,194) (43,218) (145,818) (174,758)
Net income (loss) (12,990) (13,301) (50,565) (32,358)
Basic earnings (loss) per share (0.19) (0.21) (0.78) (0.51)
Adjusted EBITDA1 2,337 793 (2,076) 11,948
Mining operations adjusted EBITDA 1 4,466 3,503 7,976 29,992
Cash provided before working capital items (operating
activities) 18,563 43 16,038 9,335
Cash operating costs excl. royalties ($/lb) 1 3.67 5.44 4.84 5.30
Adjusted cash operating costs excl. royalties 1 ($/lb) 3.05 5.04 4.05 5.19
Cash 22,106 42,714 22,106 42,714
Debt 92,280 75,000 92,280 75,000
Total mined – dry basis (tonnes) 3,673,416 3,490,711 13,949,665 14,864,394
Total ore mined (tonnes) 476,742 473,958 2,249,759 1,752,982
Effective grade of ore milled 2 (%) 0.73 1.03 0.88 1.04
V2O5 equivalent produced (tonnes) 1,775 2,768 9,264 9,681
Ilmenite concentrate produced (tonnes) 10,292 8,970 44,863 8,970
Key Highlights
During 2024, the Company recognized revenues of $118.5 million (2023 – $198.6
million) from the sales of 8,400 tonnes of V2O5 equivalent (2023 – 10,396 tonnes) as well
as revenues from ilmenite sales of $6.4 million (2023 - $nil).
The 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.
In 2024, the Company’s 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.
Adjusted cash operating costs excluding royalties per pound1, which excludes the impact
of inventory write-downs for produced products of $2.5 million for Q4 2024 (Q4 2023 –
$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.
For 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. (“LCE”) in 2024 as
the installation of its battery project nears conclusion.
Subsequent to Q4 2024, production in January 2025 was 392 tonnes of V2O5 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. V2O5 equivalent sales
were 687 tonnes in January 2025, with 551 tonnes sold in February 2025.
Subsequent 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.
The 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 or on the Company’s respective profiles at
www.sedarplus.com and www.sec.gov.
Operational Turnaround and Cost Optimization Strategy
In 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 Rendón 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.
Key actions underway and priorities ahead include:
The 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
o Improvements in drilling efficiency and ore production rates have already been
observed as of early March 2025
Ongoing optimization of pit access and streamlining material handling processes to
support more consistent throughput and operational stability
Working with geotechnical experts to optimize mining practices, including improved
blasting techniques, fleet utilization, and pit infrastructure upgrades
Introducing mechanized and automated solutions in ore processing and tailings
management, aimed at enhancing efficiency and reducing operational bottlenecks
Optimizing crushing, milling and kiln operations as well as downstream processing plant
efficiencies through improved processes, maintenance schedules and operational
adjustments designed to increase productivity
Strengthening cost management through rigorous monitoring and control processes to
ensure operating expenses remain within targeted budget levels
The Company recognizes that while its ongoing operational turnaround is a critical step forward,
additional measures are needed to fully address the Company’s 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.
The 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.
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 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.
Non-GAAP3 Measures
The Company uses certain non-GAAP measures in this press release, 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-GAAP 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 Sold
This press release refers to revenues per pound sold, V2O5 revenues per pound of V2O5 sold,
V2O3 revenues per pound of V2O3 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, V2O5 revenues per
pound of V2O5 sold, V2O3 revenues per pound of V2O3 sold and FeV revenues per kg of FeV sold
to revenues and the revenue information presented in note 19 as per the 2024 annual
consolidated financial statements.
Three months ended Year ended
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Revenues - V2O5 producedi $ 10,271 $ 25,182 $ 57,446 $ 115,534
V2O5 sold - produced (000s lb) 2,053 3,215 9,332 13,113
V2O5 revenues per pound of V2O5 sold - produced
($/lb) $ 5.00 $ 7.83 $ 6.16 $ 8.81
Revenues - V2O5 purchasedi $ — $ 1,497 $ 988 $ 9,028
V2O5 sold - purchased (000s lb) — 265 176 1,279
V2O5 revenues per pound of V2O5 sold - purchased
($/lb) $ — $ 5.65 $ 5.61 $ 7.06
Revenues - V2O5i $ 10,271 $ 26,679 $ 58,434 $ 124,562
V2O5 sold (000s lb) 2,053 3,480 9,508 14,392
V2O5 revenues per pound of V2O5 sold ($/lb) $ 5.00 $ 7.67 $ 6.15 $ 8.65
Revenues - V2O3 produced1 $ 457 $ 6,213 $ 8,353 $ 13,788
V2O3 sold - produced (000s lb) 59 596 898 1,215
V2O3 revenues per pound of V2O3 sold - produced
($/lb) $ 7.75 $ 10.42 $ 9.30 $ 11.35
Revenues - V2O3 purchasedi $ — $ — $ — $ 1,155
V2O3 sold - purchased (000s lb) — — — 88
V2O3 revenues per pound of V2O3 sold - purchased
($/lb) $ — $ — $ — $ 13.13
Revenues - V2O3i $ 457 $ 6,213 $ 8,353 $ 14,943
V2O3 sold (000s lb) 59 596 898 1,303
V2O3 revenues per pound of V2O3 sold ($/lb) $ 7.75 $ 10.42 $ 9.30 $ 11.47
Revenues - FeV producedi $ 12,212 $ 11,278 $ 46,890 $ 57,686
FeV sold - produced (000s kg) 585 479 2,221 2,070
FeV revenues per kg of FeV sold - produced
($/kg) $ 20.88 $ 23.54 $ 21.11 $ 27.87