Largo(US:LGO)2022-08-10 22:21Financial 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]