Financial Performance - Total revenues for Q2 2023 were $53,110, a decrease of 37.5% compared to $84,804 in Q2 2022[5] - Net loss for Q2 2023 was $5,966, compared to a net income of $17,965 in Q2 2022, reflecting a significant decline[5] - Comprehensive income for Q2 2023 was $4,257, compared to a loss of $1,354 in Q2 2022, indicating a positive turnaround[5] - For the three months ended June 30, 2023, Largo Inc. reported a net loss of $5,966,000 compared to a net income of $17,965,000 for the same period in 2022, representing a significant decline[7] - Total revenues for the six months ended June 30, 2023, were $110,531, a decrease of 13.3% compared to $127,492 for the same period in 2022[57] - Net income for the six months ended June 30, 2023, was a loss of $7,173, compared to a net income of $16,011 for the same period in 2022[61] Assets and Liabilities - Total assets increased to $393,319 as of June 30, 2023, up from $355,750 as of December 31, 2022, representing an increase of 10.5%[4] - Total liabilities increased to $111,763, up from $81,196 at the end of 2022, marking a rise of 37.5%[4] - The total assets of the company as of June 30, 2023, were $393,319, while total liabilities stood at $111,763[49] - Total debt increased to $65,000 as of June 30, 2023, up from $40,000 at December 31, 2022, representing a 62.5% increase[28] - Total liabilities from financing activities amounted to $65,000 as of June 30, 2023, compared to $40,000 at December 31, 2022, indicating a significant increase in financing[29] Cash and Cash Equivalents - Cash and cash equivalents rose to $63,980, an increase of 17.5% from $54,471 at the end of 2022[4] - As of June 30, 2023, the cash position was $63,980,000, an increase from $52,878,000 at the end of 2022, indicating a stronger liquidity position[7] - Cash provided by operating activities for the six months ended June 30, 2023, was $23,010,000, a notable increase from a cash used of $1,148,000 in the same period of 2022[7] - Cash and restricted cash as of June 30, 2023, totaled $64,714, an increase from $54,941 as of December 31, 2022[72] Inventory and Production - Inventory decreased slightly to $63,164 from $64,221 at the end of 2022, a decline of 1.65%[4] - The company produced 30,558 in V2O5 products for the three months ended June 30, 2023, down from 45,976 in the same period of 2022, representing a decline of 33.4%[92] - Direct mine and production costs for the three months ended June 30, 2023, were $24,976, compared to $23,905 in the same period of 2022, indicating an increase of 4.5%[93] - The company recognized a net realizable value write-down of $683,000 for finished products during the six months ended June 30, 2023, compared to $2,285,000 for the same period in 2022, reflecting improved inventory management[18] Debt and Financing - Long-term debt increased to $47,000, up from $36,000 at the end of 2022, reflecting a rise of 30.6%[4] - Accounts payable increased to $22,518 as of June 30, 2023, from $20,459 at December 31, 2022, marking a rise of 10.2%[27] - Accrued liabilities rose to $4,554 as of June 30, 2023, compared to $3,122 at December 31, 2022, an increase of 46.0%[27] - The company secured a new debt facility of $20,000 in December 2022, with semi-annual principal repayments starting after a grace period of 360 days[32] Shareholder Information - The company recognized a share-based payment expense of $413 for the three months ended June 30, 2023, compared to $491 for the same period in 2022[36] - The balance of issued shares increased to 64,050 as of June 30, 2023, from 64,006 at December 31, 2022, reflecting a slight increase[35] - The company granted 230 RSUs to officers and employees during the three months ended June 30, 2023, which will vest over three years[37] - For the six months ended June 30, 2023, the company granted 424 stock options with a weighted average exercise price of C$6.60, compared to 363 options in the previous year[38] Operational Costs - Operating costs for the six months ended June 30, 2023, were $88,960, an increase of 11.9% from $79,662 in the same period of 2022[57] - Professional, consulting, and management fees for the six months ended June 30, 2023, totaled $11,363, up from $12,296 in the same period of 2022[57] - The company incurred total remuneration of $521,000 for key management personnel during the three months ended June 30, 2023, down from $2,467,000 in the same period of 2022[46] Taxation - The company reported an income tax recovery of $295,000 for the three months ended June 30, 2023, compared to an expense of $7,115,000 in the same period of 2022[43] - The net deferred income tax asset decreased from $4,596,000 at the beginning of the period to $1,428,000 by June 30, 2023[44] - The company reported a deferred income tax expense of $3,203,000 for the six months ended June 30, 2023[44] Market and Strategic Initiatives - Largo Inc. is advancing its renewable energy storage solutions through its vanadium redox flow battery technology (VRFB) and is implementing an ilmenite concentration plant[8] - The company is focused on providing investors with exposure to physical vanadium through Largo Physical Vanadium Corp. (LPV)[8] - The company has committed to purchasing 60 tonnes of V2O5 per month from third parties for the remainder of 2023[65] - The company recognized a provision of R$28,244 ($5,861) related to legal proceedings as of June 30, 2023, an increase from $5,076 at December 31, 2022[69] Foreign Exchange and Other Risks - A 5% change in the value of the Brazilian real relative to the U.S. dollar would affect the value of Brazilian real cash balances by approximately $291 as of June 30, 2023[89] - The company has not experienced any credit losses in the six months ended June 30, 2023, with a loss allowance for trade receivables determined to be $nil[82]

Largo Inc. (NASDAQ:LGO) Q1 2023 Results Conference Call May 11, 2023 1:00 PM ET Company Participants Alex Guthrie - Senior Manager of External Relations Daniel Tellechea - Interim Chief Executive Officer and Director Ernest Cleave - Chief Financial Officer Paul Vollant - Chief Commercial Officer Conference Call Participants Heiko Ihle - H.C. Wainwright Andrew Wong - RBC Capital Markets Steve Silver - Argus Operator Good day and thank you for standing by. Welcome to Largo's First Quarter 2023 Webcast and Con ...

Financial Performance - Revenues for Q1 2023 increased to $57,421,000, up 34.4% from $42,688,000 in Q1 2022[5] - Net loss for Q1 2023 was $1,207,000, an improvement from a net loss of $1,954,000 in Q1 2022[5] - The company reported a basic loss per share of $0.02 for Q1 2023, compared to a loss of $0.03 per share in Q1 2022[5] - For the three months ended March 31, 2023, Largo Inc. reported a net loss of $1,207,000, an improvement from a net loss of $1,954,000 in the same period of 2022[7] - Net income for the same period was $1,511,000, a decrease from $3,367,000 in the previous year[49] - The net income for the first quarter of 2023 was $200, compared to a net loss of $1,954 in Q1 2022, indicating a significant improvement in profitability[52] Operating Costs - Operating costs rose to $45,931,000, compared to $28,958,000 in the same period last year, reflecting a 58.5% increase[5] - Total expenses for Q1 2023 were $45,931,000, compared to $28,958,000 in Q1 2022, reflecting a rise of 58.5%[85] - Direct mine and production costs surged to $28,419,000 in Q1 2023, up from $17,560,000 in Q1 2022, marking an increase of 62.0%[85] - Finance costs, including interest expense and fees, rose significantly to $1,351,000 in Q1 2023 from $117,000 in Q1 2022, a staggering increase of 1,152.1%[85] Assets and Liabilities - Total assets as of March 31, 2023, were $382,444,000, up from $355,750,000 at the end of 2022, representing a 7.5% increase[4] - Total liabilities increased to $105,558,000, compared to $81,196,000 at the end of 2022, reflecting a 30% increase[4] - Total liabilities from financing activities remained unchanged at $40,000 as of December 31, 2022 and March 31, 2023[29] - The company’s total liabilities decreased from $26,960 as of December 31, 2022 to $25,290 as of March 31, 2023, a decrease of 6.19%[27] Cash Flow and Liquidity - Cash and cash equivalents increased to $61,575,000 from $54,471,000, marking a 13.1% rise[4] - Cash provided by operating activities was $4,953,000, compared to a cash used of $4,050,000 in the prior year, indicating a significant turnaround[7] - Total cash position at the end of the period was $61,575,000, down from $78,394,000 at the end of March 2022[7] - The company's cash flow from operating activities and cash balance increased to $61,575,000 as of March 31, 2023, compared to $54,471,000 on December 31, 2022[77] Inventory and Receivables - Inventory decreased to $56,853,000 from $64,221,000, a decline of 11.4%[4] - Trade receivables increased to $30,299,000 as of March 31, 2023, up from $18,285,000 at the end of 2022[17] - Inventory decreased to $56,853,000 from $64,221,000 year-over-year, with finished products valued at $41,142,000[18] Financing Activities - The company received $25,000,000 in debt financing during the quarter, contributing to a net cash provided by financing activities of $25,305,000[7] - The company secured a new two-year debt facility of $15,000 in January 2023, with an interest rate of 6.85% per annum[33] - The company’s cash flows from financing activities included proceeds of $25,000 in total debt during the year ended December 31, 2022[29] Legal and Regulatory Matters - Management has recognized a provision of R$27,106 ($5,335) related to legal proceedings in Brazil, reflecting ongoing legal risks[60] Market and Product Developments - The company is advancing renewable energy storage solutions through its vanadium redox flow battery technology (VRFB) and is implementing an ilmenite concentration plant[8] - The Maracás Menchen Mine has reached commercial production, with the company holding a 99.94% economic interest in the mine[22] - The company is committed to purchasing 60 tonnes of vanadium per month from third parties for the remainder of 2023, ensuring supply stability[57] - An exclusive off-take agreement was signed for the purchase of 220 tonnes of vanadium products in 2023, securing future revenue streams[56] - The company has a royalty obligation of 7.5% on net sales of each VRFB containing licensed products, which was amended to a fixed royalty of $120 per kilowatt capacity starting April 2023[58] Foreign Exchange and Risk Management - The company recognized an unrealized gain on foreign currency translation of $4,881,000 in Q1 2023[5] - A 5% change in the value of the Canadian dollar, Euro, and Swiss franc relative to the U.S. dollar would affect cash balances by approximately $182,000[81] - A 5% change in the value of the Brazilian real relative to the U.S. dollar would impact Brazilian real cash balances by approximately $165,000[81] - The company had no debt subject to floating interest rates as of March 31, 2023, mitigating interest rate risk[78] Management Compensation - Short-term benefits for key management personnel increased to $1,090,000 in Q1 2023 from $634,000 in Q1 2022[46]

Daniel Tellechea Our production came in 6% below our revised production guidance and cash costs were 2% above our revised cash cost guidance for 2022. Unfortunately, down spills affect from the rainfall in December, continue to impact production in January and February. Despite these impacts, we expect to remain in line with the quarterly production guidance for Q1 2023, likely landing closer to the mid-point of 2050 tonnes or just under. Largo Inc. (NASDAQ:LGO) Q4 2022 Results Conference Call March 10, 202 ...

Largo Inc. (NASDAQ:LGO) Q3 2022 Results Conference Call November 10, 2022 1:00 PM ET Company Participants Alex Guthrie - Senior Manager of External Relations Paulo Misk - President and CEO Ernest Cleave - Chief Financial Officer Paul Vollant - VP of Commercial Conference Call Participants Alex Jackson - RBC Capital Markets Gordon Lawson - Paradigm Capital Operator Good day and thank you for standing by. Welcome to Largo's Third Quarter 2022 Webcast and Conference Call. At this time, all participants are in ...

Revenue Performance - Total revenues for the three months ended September 30, 2022, were $54,258,000, a slight increase from $53,861,000 in the same period of 2021[5] - For the nine months ended September 30, 2022, revenues reached $181,750,000, up from $147,954,000 in 2021, representing a year-over-year growth of approximately 22.8%[5] - Revenues for the three months ended September 30, 2022, were $54,258,000, an increase from $53,861,000 in the same period of 2021, representing a growth of approximately 0.74%[50] - For the nine months ended September 30, 2022, total revenues reached $181,750,000, up from $147,954,000 in 2021, indicating a 22.8% growth[79] - Vanadium sales from contracts with customers for the nine months ended September 30, 2022, were $181,750,000, compared to $147,954,000 in 2021, reflecting strong demand[79] Operating Costs - Operating costs for the three months ended September 30, 2022, were $45,602,000, compared to $32,126,000 in the same period of 2021, reflecting a significant increase of 42.1%[5] - Operating costs for the three months ended September 30, 2022, totaled $85,857,000, compared to $82,786,000 in the same period of 2021, showing an increase of approximately 3.77%[50] - Operating costs for the nine months ended September 30, 2022, totaled $125,264,000, up from $95,264,000 in 2021, reflecting an increase of approximately 31.5%[52] Net Income and Loss - The net loss for the three months ended September 30, 2022, was $2,601,000, compared to a net income of $9,193,000 in the same period of 2021[5] - For the three months ended September 30, 2022, Largo Inc. reported a net loss of $2,601,000 compared to a net income of $9,193,000 for the same period in 2021[7] - For the nine months ended September 30, 2022, the net income was $13,410,000, down from $21,782,000 in the previous year, reflecting a decrease of approximately 38.3%[7] - Net income for the nine months ended September 30, 2022, was $13,410,000, compared to $21,782,000 for the same period in 2021, indicating a decrease of approximately 38.4%[54] Assets and Liabilities - Total assets as of September 30, 2022, amounted to $347,569,000, an increase from $313,909,000 as of December 31, 2021[4] - Current liabilities increased to $58,156,000 as of September 30, 2022, from $41,668,000 as of December 31, 2021, indicating a rise of 39.5%[4] - Total liabilities increased to $33,485,000 as of September 30, 2022, from $19,723,000 as of December 31, 2021, marking an increase of approximately 69.8%[26] - Total liabilities as of September 30, 2022, were $64,343,000, compared to $48,212,000 at the end of 2021, representing an increase of approximately 33.51%[50] Cash Flow and Position - Cash provided by operating activities for the three months ended September 30, 2022, was $10,037,000, a decrease from $15,512,000 in the same period of 2021[7] - The cash position at the end of the period was $62,713,000, down from $87,567,000 at the end of September 30, 2021, representing a decline of 28.4%[7] - The company reported cash of $62,713,000 and trade receivables of $20,959,000 as of September 30, 2022[61] Inventory and Assets Management - Inventory levels increased to $70,686,000 as of September 30, 2022, from $45,322,000 as of December 31, 2021, representing a growth of 56%[4] - Finished products inventory increased significantly to $52,626,000 as of September 30, 2022, compared to $32,069,000 as of December 31, 2021, representing a growth of about 64.3%[20] - The total inventory, including finished products, work-in-process, stockpiles, and warehouse materials, reached $70,686,000 as of September 30, 2022, up from $45,322,000 as of December 31, 2021, a rise of approximately 56%[20] Debt and Financing - The company reported total debt of $15,000,000 as of September 30, 2022, consistent with the previous year, indicating stable debt levels[27] - The company secured a new working capital facility of $15,000,000 in April 2022, which is due for repayment in April 2023 at an interest rate of 3.65% per annum[29] - The company secured an additional debt facility of $20,000,000 subsequent to September 30, 2022, with a repayment period of three years[83] Management and Employee Compensation - The total remuneration for key management personnel for the three months ended September 30, 2022, was $817,000, compared to $1,112,000 in 2021[44] - The company granted 111 RSUs to officers and employees, vesting over three years with an expected forfeiture rate of 0%[35] - A total of 230 stock options were granted during the nine months ended September 30, 2022, with a weighted average exercise price of C$14.57[36] Other Financial Metrics - The company incurred technology start-up costs of $4,514,000 for the nine months ended September 30, 2022, indicating ongoing investment in new initiatives[5] - The company reported a foreign exchange gain of $967,000 for the three months ended September 30, 2022, compared to a loss of $826,000 in the same period of 2021, indicating a positive turnaround[50] - The estimated weighted average grant date fair value for stock options was C$9.15, based on a risk-free interest rate of 2.46% and expected volatility of 76.3%[37]

| --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------|-------|-------|---------------------------------| | | | | | | | | LARGO | | | Supporting the world's transition to a lower carbon future. A Leading Vanadium Supplier & Batteries for Long Duration Energy Storage | | | | | Investor Presentation September 2022 | | | TSX \| NASDAQ: LGO largoinc.com | Disclaimers This corporate presentation should be r ...

| --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | LARGO | Disclaimers This corporate presentation should be read in conjunction with the Largo Inc. ("Largo", or the "Company") public disclosure filings available on its issuer profile at www.sedar.com. Largo has not authorized anyone to provide prospective investors with additional or different information. Largo is not offering to sell shares or other securities in any jurisdiction where the offer or ...

Financial Data and Key Metrics Changes - The company reported a net income of $80 million for Q2 2022, with basic earnings per share of $0.28, reflecting a 56% increase in revenues compared to the previous quarter [7][13] - Revenues reached approximately $84 million from sales of 3,291 tonnes of V205 equivalents, with an average selling price of $11.69 per pound [13] - Cash operating costs, excluding royalties, increased to $4.23 per pound in Q2 2022 from $3.39 in Q1 2021, with updated guidance now ranging from $4.10 to $4.50 per pound [13][14] Business Line Data and Key Metrics Changes - The vanadium production increased to 3,084 tonnes of V205 equivalent in Q2, with sales also improving to 3,291 tonnes [7] - The company revised its production guidance for 2022 to 11,000 to 12,000 tonnes, down from 11,600 to 12,400 tonnes [8] - The Ilmenite Concentration Plant's CapEx guidance was lowered to $19 million to $21 million from $29 million to $30 million previously [15] Market Data and Key Metrics Changes - The average benchmark price for V205 in Europe was $11.08, a 3% increase from Q1 2022 and a 35% increase from Q2 2021 [17] - Demand from the aerospace, chemical, and energy sectors has increased, while consumption in the steel sector has slowed down [17] Company Strategy and Development Direction - The company is focusing on operational improvements and cost management, with a strategic emphasis on sustainability and ESG practices [9][11] - The establishment of a joint venture with Ansaldo Green Tech for the commercial deployment of the VCHARGE battery system is a priority [10] - The company aims to enhance its competitive position in the market through the development of high-purity products for the aerospace industry [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing inflationary pressures affecting operational costs and expressed confidence in achieving production targets despite earlier challenges [14][29] - The company is optimistic about the future of the clean energy division and expects to complete the commissioning of the VCHARGE battery system by February 2023 [21] Other Important Information - The company achieved ISO 9001 certification for its quality management system in its clean energy division [9] - A total of $4.2 million in funding from the Department of Energy was secured to scale up manufacturing of flow batteries [10] Q&A Session Summary Question: Can you provide a 24-month roadmap for the clean energy division? - Management highlighted the focus on delivering the VCHARGE battery system and establishing a joint venture with Ansaldo as key initiatives for the next two years [20][21] Question: What is the impact of inflation on the Ilmenite Concentration Plant's CapEx? - Management stated that they do not expect inflationary impacts on the Ilmenite project and confirmed that the updated CapEx is in line with their plans [22][23] Question: How much stock has been repurchased and why? - The company repurchased approximately 805,000 shares for about $5.5 million, reflecting confidence in the underlying fundamentals despite recent adverse trends [25][26] Question: What is the outlook for the high purity market? - The high purity market has shown strong demand, particularly from the aerospace sector, which is expected to benefit the company in terms of revenue diversification and profitability [28] Question: What confidence does management have in achieving the stated production run rate? - Management expressed strong confidence in maintaining a stable production run rate, having implemented measures to address previous operational challenges [29] Question: Can you comment on vanadium trioxide production? - The company has started producing V203 and is excited about the positive response from the aerospace industry, which is expected to drive premium pricing [31][32]

Financial Performance - Revenues for the three months ended June 30, 2022, were $84,804,000, a 56.3% increase from $54,292,000 in the same period of 2021[5] - Net income for the three months ended June 30, 2022, was $17,965,000, compared to $8,445,000 for the same period in 2021, representing a 112.5% increase[5] - Basic earnings per share for the three months ended June 30, 2022, were $0.28, up from $0.13 in the same period of 2021, a 115.4% increase[5] - Revenues for the six months ended June 30, 2022, reached $127,492, compared to $108,621 for the same period in 2021, marking an increase of 17.4%[53] - Net income for the six months ended June 30, 2022, was $12,589,000, compared to $10,336,000 for the same period in 2021, reflecting a 21.7% increase[56] Assets and Liabilities - Total assets as of June 30, 2022, were $358,739,000, up from $313,909,000 as of December 31, 2021, indicating a 14.3% growth[4] - Total current liabilities rose to $61,626,000 as of June 30, 2022, compared to $41,668,000 as of December 31, 2021, marking a 47.9% increase[4] - Total liabilities as of June 30, 2022, were $68,326, a decrease from $48,212 at the end of 2021, showing a reduction of 41.7%[51] - Total equity attributable to owners of the company increased to $290,443,000 as of June 30, 2022, from $265,697,000 as of December 31, 2021, a growth of 9.3%[4] Cash and Cash Equivalents - Cash and cash equivalents decreased to $52,878,000 as of June 30, 2022, from $83,790,000 as of December 31, 2021, a decline of 37.0%[4] - Total cash position at the end of June 30, 2022, was $52,878, down from $80,669 at the end of June 30, 2021[7] Inventory and Receivables - Inventory increased to $68,846,000 as of June 30, 2022, from $45,322,000 as of December 31, 2021, reflecting a 52.1% rise[4] - Trade receivables increased to $31,940 as of June 30, 2022, from $22,144 as of December 31, 2021, indicating a 44% growth[16] Operating Costs and Expenses - The company reported operating costs of $79,662 for the six months ended June 30, 2022, compared to $168,929 in the same period of 2021, a decrease of 52.8%[53] - Operating costs for the three months ended June 30, 2022, increased to $50,704,000 from $34,966,000 in the same period of 2021, representing a 45% increase[83] - Direct mine and production costs rose to $23,905,000 in Q2 2022, up from $19,599,000 in Q2 2021, reflecting a 22% increase[83] - Product acquisition costs surged to $9,568,000 in Q2 2022, compared to $3,669,000 in Q2 2021, marking a 161% increase[83] Management and Personnel - Total remuneration for key management personnel for the three months ended June 30, 2022, was $2,467 thousand, compared to $1,605 thousand for the same period in 2021[44] - The company granted 111 RSUs to officers and employees, vesting over three years with an expected forfeiture rate of 0%[33] Technology and Innovation - The company is focused on advancing renewable energy storage solutions through its vanadium redox flow battery technology[8] - The company incurred technology start-up costs of $4,817 for the six months ended June 30, 2022, indicating ongoing investment in new technologies[53] Taxation - The total income tax expense for the three months ended June 30, 2022, was $(7,115) thousand, compared to $(2,138) thousand for the same period in 2021[41] - The net deferred income tax asset at the end of June 30, 2022, was $3,671 thousand, an increase from $3,343 thousand at the beginning of the period[42] Other Financial Activities - The company sold a 50% interest in Largo Physical Vanadium during the three and six months ended June 30, 2022[45] - The company raised total proceeds of $23,457 thousand through a private placement for Largo Physical Vanadium, which are held in escrow until the completion of a qualifying transaction[46]