Largo Delivers Improved May Production, On Target for 2025 Guidance — Commodity Comment

Largo reported Wednesday a month-over-month increase in vanadium pentoxide and ilmenite concentrate in May at the Maracas Menchen mine in Brazil.

A statement noted vanadium pentoxide production jumped 75% to 835 tonnes while ilmenite concentrate production climbed 65% to 3,025 tonnes.

Largo attributed the production increase to its previously announced operational turnaround plans, including gaining access to the 200-level area of disseminated ore, sourcing additional ore feed from the 110 and 120 levels, and production drilling activities.

"We are encouraged by the improved production results achieved in May, which represent an important step forward in our operational turnaround," interim CEO Daniel Tellechea said. "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."

The company said it has commenced the reprocessing of its existing non-magnetic tailings ponds to produce vanadium and ilmenite. It also plans to enhance the existing vanadium recovery process to extract more vanadium.

Largo said it expects to achieve its 2025 production guidance of 9,500 to 11,500 tonnes of vanadium pentoxide.

Meanwhile, Largo said it is reviewing a default notice from a counterparty over alleged delivery issues. The company said it is assessing available options.

LGO fell 3% and nearer to 52 week lows on the TSX yesterday.

Largo said Wednesday its unit Largo Resources USA signed a non-recourse factoring facility with a third-party firm to sell certain accounts receivable for up to $10 million in proceeds.

The firm will advance 85% of 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 terms.

Largo said it is working to establish similar facilities for Largo Inc. and Largo Commodities Trading, which could expand the total facility to $30 million.

The two-year facility can be terminated by the factor with 90 days' notice or immediately in case of default, according to the company.

Largo's Q1 2025 results show lower revenues and production due to weak vanadium markets, but cost reductions narrowed losses. The company maintains 2025 guidance and focuses on operational turnaround and liquidity.

Original document: Largo Inc. [LGO] Earnings Release — May. 15 2025