Largo Reports Third Quarter 2025 Financial Results
Largo Reports Third Quarter 2025 Financial
Results
All amounts expressed are in U.S. dollars, denominated by “$”.
Q3 2025 and Other Highlights
Revenues of $33.3 million ($32.3 million from vanadium sales and $1.0 million from
ilmenite sales) in Q3 2025 vs. revenues of $29.9 million ($27.2 million from
vanadium sales and $2.7 million from ilmenite sales) in Q3 2024
Revenues per lb sold3 of V2O5 equivalent of $6.06 in Q3 2025 vs. $6.28 in Q3 2024
Adjusted cash operating costs excluding royalties per pound sold3 of $3.03 in Q3
2025, a 2% improvement over the $3.08 per lb sold in Q3 2024, and a 5%
improvement over the $3.18 per lb sold in Q2 2025
Operating cash flows before working capital items of $11.9 million in Q3 2025, a
$13.9 million increase over negative $2.0 million in Q3 2024
Mining operations adjusted EBITDA3 of $4.0 million in Q3 2025 vs. $2.4 million in
Q3 2024
Net loss before tax of $10.4 million (including $3.7 million in non-recurring items) in
Q3 2025, vs. net loss before tax of $11.9 million (including $3.3 million in non-
recurring items) in Q3 2024. Net loss of $36.6 million in Q32025 vs. net loss of $10.1
million in Q3 2024, with difference primarily related to the non-cash derecognition
of a deferred tax asset of $28.4 million
Basic loss per share of $0.57 in Q3 2025 vs. basic loss per share of $0.16 in Q3 2024
Production of 2,636 tonnes (5.8 million lbs1) of V2O5 in Q3 2025 vs. 3,072 tonnes in
Q3 2024 and 2,256 tonnes in Q2 2025
V2O5 equivalent sales of 2,417 tonnes (inclusive of 17 tonnes of purchased material)
in Q3 2025 vs. 1,961 tonnes (inclusive of 124 tonnes of purchased material) sold in
Q3 2024
The Company produced 8,643 tonnes of ilmenite concentrate in Q3 2025 vs. 8,149
tonnes in Q2 2025 and sold 6,358 tonnes vs. 6,024 tonnes
Storion Energy LLC (“Storion”) signs strategic supply agreement with TerraFlow
Energy LLC to supply vanadium electrolyte and battery stacks; Storion secures
electrolyte lease for 48 MWh flow battery project in Texas, supported by Largo
Physical Vanadium Corp.’s unique electrolyte leasing model
Started installation of additional flotation cell circuits to increase ilmenite
production capacity to 115,000 tonnes from 42,000 tonnes annually. Operations
expected to resume in late November 2025 with ramp up to the expanded
production levels currently expected to occur by year end
Subsequent to Q3 2025, Largo raised US$23.4 million through a Registered Direct
Offering and Private Placement (“Offering”), and received an executed binding
term sheet with the five Brazilian Lenders representing $84.2 million of debt to
defer principal repayments to September 18, 2026, following the Company securing
capital of at least $22 million through the Offering
Subsequent to Q3 2025, the Company signed an amended agreement with the
counterparty who sent the Company a default notice for failure to deliver 900
tonnes of V₂O₅ at the scheduled time. The Company agreed to deliver the remaining
900 tonnes of V₂O₅ by January 2026 and the counterparty has an option to purchase
between 0 - 500 tonnes of V₂O₅ from June 2028 to October 2028.
Vanadium Market Update2
During Q3 2025, vanadium prices remained under pressure in Europe and China,
due to continued low demand in the steel and infrastructure sector and an
oversupply from Chinese and Russian producers
On October 23, 2025, the European Union announced sanctions against the largest
vanadium producer outside of China.
The US FeV market remains stronger than the European market: As of November
7, 2025, the average benchmark FeV price per lb V was $13.45 in the U.S. (or
approximately $29.65 per kg FeV), which is 24% greater than the average
benchmark price per kg of FeV of $23.93 in Europe, driven by increased demand
amid ongoing political developments and policy shifts impacting supply dynamics
The average benchmark price per pound of V2O5 in Europe was $5.23 in Q3 2025,
an 8% decrease from the average of $5.71 seen in Q3 2024
The average benchmark price per kg of FeV in Europe was $23.68 in Q3 2025, a 9%
decrease from the average of $25.95 seen in Q3 2024
TORONTO--(BUSINESS WIRE)--November 12, 2025--Largo Inc. ("Largo" or the
"Company") (TSX: LGO) (NASDAQ: LGO) today released financial results for the three
months and nine ended September 30, 2025. The Company reported quarterly vanadium
pentoxide (“V2O5”) equivalent sales of 2,417 tonnes at an adjusted cash operating cost excluding
royalties per pound5 sold of $3.03.
Daniel Tellechea, Director and Interim CEO of Largo commented: "In Q3 2025, we continued to
improve our production, increasing it to 2,636 tonnes, up from 2,256 tonnes in Q2 and 1,297
tonnes in Q1. Additionally, this has led to a reduction of our adjusted cash operating costs
excluding royalties to $3.03/lb, down from $3.88/lb in Q1. With positive operational
improvements on track at the Maracás Menchen Mine, we can turn our attention to our financial
position.” He continued: “The recent $23.4 million equity raise and the principal deferral from
our Brazilian lenders are two actions taken by Largo.”
He concluded: “We continue to look for ways to deliver high purity vanadium products for the
US and European aerospace and defense industries, and to navigate the geopolitical landscape,
inclusive of the US tariffs on our Brazilian products as well as the ongoing geopolitical
developments and policy shifts impacting supplying dynamics.”
Financial and Operating Results – Highlights
Three months ended Nine months ended
(thousands of U.S. dollars, except as otherwise
stated)
September 30,
2025
September 30,
2024
September 30,
2025
September 30,
2024
Revenues 33,264 29,906 87,616 100,652
Operating costs (34,314) (29,538) (106,848) (115,624)
Net loss (36,616) (10,086) (51,573) (37,575)
Basic loss per share (0.57) (0.16) (0.80) (0.59)
Adjusted EBITDA3 1,951 (1,155) (789) (4,413)
Mining operations adjusted EBITDA 3 3,984 2,360 5,943 3,510
Cash provided (used) before working capital
items 11,919 (1,994) 2,803 3,413
Cash operating costs excl. royalties 3 ($/lb) 3.70 3.12 4.86 5.18
Adjusted cash operating costs excl. royalties 3
($/lb) 3.03 3.08 3.34 4.34
Cash 7,847* 30,450** 7,847* 30,450**
Debt 106,005* 93,704** 106,005* 93,704**
Total mined – dry basis (tonnes) 3,865,738 3,815,827 12,060,606 10,276,249
Total ore mined (tonnes) 425,461 386,221 1,149,278 1,038,243
Effective grade4 of ore mined (%) 0.52 0.76 0.49 0.66
V2O5 equivalent produced (tonnes) 2,636 3,072 6,189 7,490
V2O5 equivalent sales (tonnes) 2,417 1,961 6,290 6,567
Ilmenite concentrate produced (tonnes) 8,643 16,383 22,954 34,571
*As at September 30, 2025
**As at September 30,2024
Key Highlights
The Company reported a net loss of $36.6 million for Q3 2025, compared to the net loss
of $10.1 million for Q3 2024. This was primarily related to the non-cash derecognition of
the deferred tax asset in Q3 2025 of $28.4 million. Operating costs increased to $34.3
million in Q3 2025 from $29.5 million in Q3 2024, which was primarily driven by an
11% increase in sales.
Operating cash flows before working capital items increased to $11.9 million in Q3 2025,
up from negative $2.0 million in Q3 2024, and Q3 2025 adjusted EBITDA increased to
$2.0 million up from negative $1.2 million in Q3 2024. This is despite lower prices Q3
2025 relative to Q3 2024.
Adjusted cash operating costs excluding royalties3 reduced by 2% to $3.03 per lb sold in
Q3 2025 over Q3 2024 ($3.08 per lb sold) despite 14% production reduction in Q3 2025
over Q3 2024. This is a result of the Company's operational turnaround plan and cost
optimization initiatives even as it has increased production throughout 2025.
Professional, consulting and management fees of $3.1 million in Q3 2025 decreased from
Q3 2024 by 48%, which was primarily attributable to the Company's focus on reducing
costs, including its activity at Largo Clean Energy Corp. (“LCE”) during the quarter.
Additionally, Other G&A expenses of 1.1 million and technology start-up costs of $0.2
million in Q3 2025 were 47% and 85% less than Q3 2024.
Subsequent to Q3 2025, October 2025 production and sales were 900 tonnes and 400
tonnes of V2O5 equivalent, respectively. Under the terms of the Company’s amended
inventory supply agreement, a further 100 tonnes of V2O5 equivalent, which are subject
to refund, was delivered in October 2025. No revenues are recognized for these deliveries
and amounts received are recognized as revenues subject to refund in the Company’s
consolidated statement of financial position upon receipt. Additionally, 3,873 dry tonnes
of ilmenite were sold in October.
The information provided within this release should be read in conjunction with Largo's
unaudited condensed interim consolidated financial statements for the three and nine months
ended September 30, 2025 and 2024 and its management's discussion and analysis (“MD&A”)
for the three and nine months ended September 30, 2025 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.
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.
The Company also holds a 100% interest in the Currais Novos Tungsten Tailing Project near
Natale Brazil, and a 100% interest in the Northern Dancer Tungsten-Molybdenum property
located in the Yukon Territory, Canada. 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.
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; the expected use of proceeds of the Facility and their
expected impact on the Company’s liquidity position and ability to improve its operations; the
Company’s transition from turnaround execution to steady-state operations; the Company’s
ability to meet its set targets for the year; and the extent of capital and operating expenditures.
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 prices 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, especially 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-GAAP Measures
The Company uses certain non-GAAP measures in its 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-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’s 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 Q3 2025 unaudited
condensed interim consolidated financial statements.
Three months ended Nine months ended
September 30,
2025
September 30,
2024
September 30,
2025
September 30,
2024
Revenues - V2O5 producedi $ 13,581 $ 12,884 $ 33,865 $ 47,175
V2O5 sold - produced (000s lb) 2,266 2,142 5,695 7,279
V2O5 revenues per pound of V2O5 sold - produced
($/lb) $ 5.99 $ 6.01 $ 5.95 $ 6.48
Revenues - V2O5 purchasedi $ 13 $ — $ 13 $ 988
V2O5 sold - purchased (000s lb) 2 — 2 176
V2O5 revenues per pound of V2O5 sold - purchased
($/lb) $ 6.50 $ — $ 6.50 $ 5.61
Revenues - V2O5i $ 13,594 $ 12,884 $ 33,878 $ 48,163
V2O5 sold (000s lb) 2,268 2,142 5,697 7,455
V2O5 revenues per pound of V2O5 sold ($/lb) $ 5.99 $ 6.01 $ 5.95 $ 6.46
Revenues - V2O3 producedi $ 1,209 $ 958 $ 3,940 $ 7,896
V2O3 sold - produced (000s lb) 135 89 473 839
V2O3 revenues per pound of V2O3 sold - produced
($/lb) $ 8.96 $ 10.76 $ 8.33 $ 9.41
Revenues - FeV producedi $ 17,228 $ 11,519 $ 42,820 $ 34,678
FeV sold - produced (000s kg) 869 555 2,110 1,636
FeV revenues per kg of FeV sold - produced
($/kg) $ 19.83 $ 20.75 $ 20.29 $ 21.20
Revenues - FeV purchasedi $ 248 $ 1,814 $ 4,582 $ 4,766
FeV sold - purchased (000s kg) 11 84 197 222
FeV revenues per kg of FeV sold - purchased
($/kg) $ 22.55 $ 21.60 $ 23.26 $ 21.47
Revenues – FeVi $ 17,476 $ 13,333 $ 47,402 $ 39,444
FeV sold (000s kg) 880 639 2,307 1,858
FeV revenues per kg of FeV sold ($/kg) $ 19.86 $ 20.87 $ 20.55 $ 21.23
Revenues1 $ 32,279 $ 27,175 $ 85,220 $ 95,503
V2O5 equivalent sold (000s lb) 5,329 4,324 13,868 14,478
Revenues per pound sold ($/lb) $ 6.06 $ 6.28 $ 6.15 $ 6.60
i. As per note 19 of the Company’s Q3 2025 unaudited condensed interim consolidated financial statements.
Cash Operating Costs Excluding Royalties Per Pound
The Company’s press release 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 to 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 operating costs excluding royalties per pound and adjusted cash operating costs
excluding royalties per pound for the Maracás Menchen Mine to operating costs as per the Q3
2025 unaudited condensed interim consolidated financial statements.
Three months ended Nine months ended
September 30,
2025
September 30,
2024
September 30,
2025
September 30,
2024
Operating costsi $ 34,314 $ 29,538 $ 106,848 $ 115,624
Professional, consulting and management fees ii 369 463 1,345 1,401
Other general and administrative expenses iii 379 351 768 936
Less: ilmenite costs and write-downi (1,994) (3,579 ) (6,089) (5,875 )
Less: conversion costsi (4,149) (1,982 ) (9,685) (6,023 )
Less: product acquisition costsi (245) (1,537 ) (4,580) (4,897 )
Less: distribution costsi (2,688) (2,275 ) (6,222) (5,817 )
Less: inventory write-downiv (32) (1,002 ) (21) (261 )
Less: depreciation and amortization expense i (5,084) (5,338 ) (14,632) (18,811 )
Cash operating costs $ 20,870 $ 14,558 $ 67,732 $ 75,794
Less: royaltiesi (1,315) (1,935 ) (3,484) (5,422 )
Cash operating costs excluding royalties $ 19,555 $ 12,623 $ 64,248 $ 70,372
Less: vanadium inventory write-downv (3,509) (166 ) (20,086) (11,380 )
Adjusted cash operating costs excluding royalties 16,046 12,457 $ 44,162 $ 58,992
Produced V2O5 sold (000s lb) 5,291 4,050 13,210 13,579