Largo(US:LGO)2022-11-09 22:05Revenue 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]