Core Viewpoint - Largo Inc. has terminated its iron ore calcine sale agreement due to non-receipt of the required initial payment, while also assessing the implications of recent U.S. Supreme Court decisions on tariff authority affecting its vanadium products [1][2][3]. Update on Iron Ore Calcine Transaction - The sale agreement for up to 4.5 million tonnes of iron ore calcine was contingent on an initial payment of $2.9 million, which was deferred to February 9, 2026, but ultimately not received, leading to the termination of the agreement [1][2]. - Largo retains full ownership of the calcine material and is exploring other potential buyers [3][12]. Assessment of Recent U.S. Supreme Court Decisions on Tariff Authority - The Supreme Court decision has implications for the tariff authority affecting Brazilian-origin vanadium products, which previously faced a 50% tariff on imports into the U.S. [3][4]. - There is potential for reimposition of tariffs at lower rates of 10-15%, which could enhance the competitiveness of Largo's products in the U.S. market [4][5]. Readiness of Vanadium Through Largo's Bonded Vanadium Inventory in U.S. Ports - Largo has high purity vanadium units stored in a bonded warehouse in the U.S., which have not yet been imported due to high tariffs, impacting working capital [5][6]. - The modification or reduction of tariffs could allow for rapid release and supply of these units to U.S. customers, enhancing market responsiveness [5][6]. Continued Price Acceleration Since February 12, 2026 Market Update - Vanadium prices have strengthened significantly, with European ferrovanadium prices rising from approximately $25.6/kg to $27.7/kg, and U.S. prices increasing from $17-18.5/lb to over $21/lb, with recent trades near $23/lb [6][7]. - V₂O₅ prices have also increased above $5.5/lb, indicating tightening fundamentals in the vanadium market [7][8]. Positioning to Support U.S. Supply Security - Largo is positioned as a primary producer capable of supplying both ferrovanadium and high-purity vanadium products, which could enhance supply security for U.S. customers as tariff constraints are eased [8][9]. About Largo - Largo is a recognized supplier of high-quality vanadium and ilmenite products from its Maracás Menchen Mine in Brazil, contributing to various industries including steel, aerospace, and energy storage [9][10]. - The company is also invested in clean energy storage through its joint venture in vanadium flow battery production [10].

Core Insights - Largo Inc. reported annual production of 9,150 tonnes (20.17 million lbs) of vanadium pentoxide equivalent from its Maracás Menchen Mine in 2025, with sales of 8,686 tonnes, achieving production guidance despite challenges from lower ore grades and new US tariffs [4][5][7] Production and Sales Performance - Q4 2025 V2O5 equivalent production was 2,961 tonnes, a 66.8% increase from Q4 2024, while annual production was slightly lower than 2024's 9,264 tonnes [7][20] - Total ore mined in Q4 2025 was 665,953 tonnes, with an effective ore grade of 0.53% V2O5, higher than the previous year [6][20] - Global recovery rates improved to 80.1% in 2025 from 76.4% in 2024, maintaining 77.9% in Q4 2025 [7][20] Market and Pricing Trends - The average benchmark price per lb of V2O5 in Europe rose to $5.85 in Q4 2025, a 9.55% increase from Q4 2024, while ferrovanadium prices in the US and Europe saw declines of 8.54% and 8.62% respectively [7][20] - Vanadium spot demand remained soft in Q4 2025, primarily due to weaker demand in the Chinese and European steel industries, although the US steel market remained stable [7][20] Future Guidance and Strategic Initiatives - The company expects higher V2O5-equivalent production in Q1 2026 compared to Q1 2025, driven by increased ore availability [9][10] - Largo is focusing on productivity improvements, including mining efficiency and operational enhancements, to stabilize and enhance throughput in 2026 and beyond [10][20] - The company has suspended ilmenite production guidance for 2026 to evaluate the potential for copper and PGM production using existing infrastructure [5][7]