Canada's Largo Q2 revenue rises on higher vanadium prices, sales
Canada's Largo Q2 revenue rises on higher vanadium prices, sales
Overview
Canada-based vanadium producer's Q2 revenue rose 68.5% yr/yr on higher prices and sales volumes
Company posted a wider net loss due to non-cash write-downs and higher input costs
Largo began copper-PGM concentrate production to diversify revenue and offset cost pressures
Outlook
Largo reiterates 2026 vanadium production guidance of 10,500-12,000 tonnes V₂O₅ equivalent
Company expects 2026 V₂O₅ equivalent sales of 7,500-9,500 tonnes and adjusted cash costs of $3.50-$4.50/lb
Initial copper-PGM concentrate production guidance set at 300-380 tonnes per month
Result Drivers
HIGHER VANADIUM PRICES - Co said stronger vanadium market conditions and higher benchmark prices boosted Q2 revenue
INCREASED VANADIUM PRODUCTION AND SALES - Co attributed higher vanadium output and sales to improved ore availability and operational stability at Maracás Menchen Mine
RISING INPUT COSTS - Co said higher raw material input costs, including diesel fuel, explosives and sulfur-derived reagents, partly offset revenue gains
Company press release: ID:nNFC20n1j9
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $44 mln |
|
Q2 Net Loss |
| $22.74 mln |
|
Q2 Loss Per Basic Share |
| $0.21 |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the uranium peer group is "buy"
Wall Street's median 12-month price target for Largo Inc is C$2.40, about 130.8% above its August 13 closing price of C$1.04
Reuters Recommended Reads
Aug 13 - Canada's Eastern Platinum Q2 net loss widens on lower sales, higher costs
Aug 13 - Canada's Aya Gold & Silver Q2 revenue jumps on higher prices and sales volumes
Aug 13 - Canada's Wesdome Gold Q2 profit rises on higher realized gold prices, reaffirms guidance
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)