Largo(US:LGO)2024-03-21 23:30Financial Performance - In Q4 2023, Largo reported revenues of $44.17 million, a decrease of 7% compared to $47.50 million in Q4 2022[25]. - For the year ended December 31, 2023, total revenues were $198.58 million, down from $229.25 million in 2022, representing a decline of approximately 13.3%[25]. - The company's EBITDA for the year ended December 31, 2023, was $1.806 million, a significant decrease from $27.796 million in 2022, reflecting a decline in operational performance[39]. - Net loss increased to $32,358,000 in 2023 compared to a net loss of $2,226,000 in 2022, marking a significant increase in losses[45]. - The net loss for the year was $32.36 million, compared to a net loss of $22.26 million in the previous year, indicating a deterioration in financial performance[46]. Production and Sales - The company produced 3,215 thousand pounds of V2O5 in Q4 2023, down from 3,483 thousand pounds in Q4 2022, reflecting a production decrease of approximately 7.7%[24]. - The produced V2O5 sold for the three months ended December 31, 2023, was 5,437,000 pounds, a decrease of 7.1% from 5,855,000 pounds sold in the same period of 2022[39]. - In January 2024, production was 582 tonnes of V2O5 equivalent, with sales of 1,072 tonnes, indicating a strong start to the year despite previous maintenance issues[17]. Costs and Expenses - Cash operating costs per pound for the three months ended December 31, 2023, were $5.86, up from $5.51 in the previous year, indicating a rise of approximately 6.4%[39]. - Cash operating costs excluding royalties per pound for the year ended December 31, 2023, were $5.30, compared to $4.57 in 2022, reflecting an increase of approximately 15.9%[39]. - Total operating costs for the year ended December 31, 2023, were $174.758 million, an increase of 3.1% from $169.719 million in 2022[39]. - Professional, consulting, and management fees decreased to $23,068,000 in 2023 from $25,277,000 in 2022, a reduction of approximately 8.7%[45]. - Finance costs significantly increased to $9,630,000 in 2023 from $1,588,000 in 2022, indicating a rise of over 507%[45]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to $381.62 billion, an increase from $355.75 billion[44]. - Total liabilities reached $125.82 billion, with current liabilities at $42.45 billion[44]. - The company has a long-term debt of $75 billion, which is manageable within its capital structure[44]. - Total equity was reported at $255.79 billion, reflecting a strong financial position[44]. Strategic Focus - The company is focusing on ramping up its ilmenite concentrate plant and evaluating its U.S.-based clean energy business, including advanced vanadium battery technology[13]. - Largo's strategic plan aims to maintain its position as a leading vanadium supplier while supporting a low-carbon future[13]. - The company anticipates operational stability and improved cash flow in the future, contingent on favorable market conditions and operational efficiency[15][16]. Cash Flow and Liquidity - The company reported a cash provided by operating activities of $21.19 million, a decrease from $24.60 million in the previous year[46]. - Cash position at the beginning of the year was $54.47 billion, while the cash position at the end of the year was $42.71 billion[1]. - Net change in cash was a decrease of $11.75 billion compared to a decrease of $29.31 billion in the previous period[1]. - The company has restricted cash of $71.24 million, indicating liquidity management practices[44].