Largo Inc.
- Open
- 0.75
- Day high
- 0.77
- Day low
- 0.72
- Prev close
- 0.73
- Volume
- 253K
- Mkt cap
- $75M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.6
- P/S
- 0.6
- Yield
- —
- Per share
- —
Largo Inc. (LGO) is a Basic Materials company listed on NASDAQ. The stock is down 50% over the past year. Drillr has 2 published research articles covering LGO.
Largo Inc. (LGO) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LGO earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 21, 2026 | $-0.15 | $-0.21 | -40.0% | $44M | +14.3% |
| May 13, 2026 | $0.02 | $-0.07 | -450.0% | $28M | +1.4% |
| Mar 31, 2026 | $-0.09 | $-0.18 | -100.0% | $22M | +0.0% |
| Nov 12, 2025 | $-0.08 | $-0.16 | -100.0% | $33M | — |
| Mar 28, 2025 | $-0.07 | $-0.19 | -171.4% | $17M | -77.7% |
| Aug 8, 2024 | $-0.10 | $-0.23 | -130.0% | $21M | -72.1% |
| May 15, 2024 | $-0.05 | $-0.20 | -300.0% | $31M | -57.0% |
| Mar 21, 2024 | $-0.05 | $-0.21 | -320.0% | $34M | -27.4% |
| Mar 9, 2023 | $-0.09 | $-0.24 | -166.7% | $35M | -32.8% |
| Nov 9, 2022 | $-0.02 | $-0.04 | -142.6% | $40M | -30.5% |
| Aug 10, 2022 | $0.24 | $0.28 | +16.7% | $66M | +15.5% |
| Mar 16, 2022 | $0.14 | $0.01 | -92.9% | $39M | -36.0% |
LGO research & analysis
ERD, LGO: China Export Curbs Push Buyers to Unstudied Deposits
Erdene and Largo say buyers are approaching molybdenum and tungsten assets with no current study - one pre-PEA, one idle since 2012 - after China tightened export licensing.
6998.TCGAUERDErdene (ERD), Largo (LGO): Tungsten and Molybdenum Buyers Reach Undeveloped Mines
Erdene and Largo told August 2026 calls that Asian buyers and unsolicited bidders approached their undeveloped molybdenum and tungsten assets before any study.
6998.TCGAUERD
Largo Inc. company profile
Overview
Largo Inc. (TSX:LGO) is a Canadian mining and energy storage company founded in 1988 and headquartered in Toronto. The company operates the Maracás Menchen Mine in Brazil, one of the world's highest-grade vanadium deposits, and has evolved from a traditional mining operation into a vertically integrated vanadium producer with clean energy storage capabilities. Originally incorporated as Largo Resources Ltd., the company rebranded to Largo Inc. in November 2021 to reflect its expanded focus beyond mining into renewable energy solutions through its Largo Clean Energy division.
Business
Largo operates primarily in the vanadium mining and processing industry, with vanadium being a critical metal used in steel strengthening and emerging energy storage applications. Vanadium is a transition metal that, when added to steel in small quantities, significantly increases its strength and durability, making it essential for construction, automotive, and aerospace applications. The company's core business revolves around extracting vanadium ore from its Brazilian mine and processing it into various vanadium products. The company operates through five distinct business segments: 1. Sales & Trading - This represents the largest revenue generator, focusing on the sale of processed vanadium products. The company produces several vanadium products including VPURE+ vanadium flakes used in master alloys and aerospace applications, VPURE vanadium flakes for steel production, ferrovanadium, vanadium carbon nitride for the steel industry, and VPURE+ vanadium powder for chemical catalyst applications. This segment typically accounts for approximately 85-90% of total revenues. 2. Mine Properties - This encompasses the Maracás Menchen Mine operations in Brazil, which contains one of the world's highest-grade vanadium deposits. The mine has proven reserves extending operations until 2054 and also produces ilmenite as a co-product, which is used in titanium dioxide production for paints and pigments. 3. Largo Clean Energy - This division focuses on vanadium redox flow battery (VRFB) technology for utility-scale energy storage systems. VRFBs use vanadium electrolyte to store electrical energy, offering advantages like long cycle life and the ability to discharge completely without degradation. This segment represents the company's strategic pivot toward renewable energy storage solutions, though it currently contributes a minimal percentage of total revenues. 4. Exploration and Evaluation Properties - This segment involves ongoing exploration activities to identify and develop additional mineral resources. 5. Corporate - This handles general corporate functions and overhead costs. The company also produces ilmenite as a co-product from its mining operations, which provides an additional revenue stream representing approximately 5-10% of total revenues.
Revenue model
Largo generates revenue primarily through direct product sales to industrial customers in the steel, aerospace, and chemical industries. The company's business model is based on extracting vanadium ore from its wholly-owned Brazilian mine, processing it into various vanadium products, and selling these products globally. The primary customers include steel manufacturers who use vanadium to strengthen steel alloys, aerospace companies requiring high-purity vanadium for specialized applications, and chemical companies using vanadium in catalyst production. The company's revenue streams include: 1. Vanadium product sales - Representing approximately 85-90% of revenues, these sales are made through both spot market transactions and longer-term supply contracts. Pricing is typically based on market benchmarks with premiums for higher-purity products. 2. Ilmenite sales - Contributing roughly 5-10% of revenues, ilmenite is sold to titanium dioxide producers at market prices ranging between $250-$350 per tonne. 3. Energy storage systems - Through Largo Clean Energy, the company sells vanadium redox flow battery systems, though this represents a minimal current revenue contribution. Several factors significantly impact Largo's profit margins. Vanadium commodity prices represent the most critical factor, as they directly affect revenue while production costs remain relatively fixed. The company benefits from premium pricing for high-purity products, which can command 10-20% price premiums over standard vanadium products. Operational efficiency at the Brazilian mine directly impacts costs, with factors like ore grade, recovery rates, and production volumes affecting per-unit costs. The company has been working to reduce cash operating costs from over $5.50 per pound to below $4.00 per pound through operational improvements. Currency fluctuations also significantly impact margins, as the company operates in Brazil with costs in Brazilian reais while selling products in US dollars. Input cost inflation, particularly for sodium carbonate (a key processing chemical), fuel, and labor, can compress margins. The company faces competitive pressure from Chinese vanadium producers, though it benefits from serving markets that prefer non-Chinese supply sources, particularly in North America and Europe.
Competitive moat
Largo's competitive moat is moderate but faces significant challenges. The company's primary competitive advantage stems from operating one of the world's highest-grade vanadium deposits, with ore grades significantly above global averages. This high-grade resource provides a meaningful cost advantage over competitors mining lower-grade deposits. The Maracás Menchen Mine's long reserve life extending to 2054 provides operational certainty and barriers to entry, as developing new vanadium mines requires substantial capital investment and lengthy permitting processes. The company has also developed specialized product capabilities, particularly in high-purity vanadium products that command premium pricing in aerospace and chemical applications. This product differentiation creates some customer stickiness and pricing power. Additionally, Largo benefits from being a non-Chinese vanadium supplier, which is increasingly valuable as Western customers seek supply chain diversification away from China-dominated markets. However, Largo's moat faces several vulnerabilities. The vanadium market is highly cyclical and subject to significant price volatility driven by steel industry demand, which represents roughly 90% of global vanadium consumption. The company has limited pricing power during market downturns, as evidenced by recent challenging market conditions. Chinese producers maintain significant cost advantages and market share, creating ongoing competitive pressure. The company's clean energy storage business, while strategically positioned in a growing market, faces intense competition from established battery manufacturers and alternative energy storage technologies. The vanadium redox flow battery market remains niche compared to lithium-ion batteries, and Largo lacks the scale and technological differentiation of larger competitors. Geographic concentration risk also weakens the moat, as the company's operations are heavily dependent on a single mine in Brazil, exposing it to country-specific political, regulatory, and operational risks.
Risks & safety
Largo's margin of safety appears concerning with significant financial stress indicators, though the company maintains some liquidity buffers. **Cash and Liquidity:** - Cash position of $22.1 million as of Q4 2024, down from $46.3 million in Q1 2024 - Current ratio of 0.82, indicating current liabilities exceed current assets - Quick ratio of 0.40, showing limited ability to meet short-term obligations with liquid assets - Free cash flow negative at -$4.6 million in Q4 2024, though operating cash flow was positive at $7.7 million **Debt and Solvency:** - Total debt of approximately $18 million with debt-to-equity ratio of 0.11, indicating low leverage - Total liabilities of $147.4 million against total assets of $318.7 million - Net working capital deficit, creating potential liquidity pressure **Valuation Metrics:** - Trading at 0.67x book value, suggesting potential undervaluation - Negative EBITDA of -$8.5 million creates meaningless EV/EBITDA metrics - Price-to-earnings ratio negative due to losses **Other Considerations:** - Company has been consistently unprofitable with net losses in recent quarters - Declining cash position raises concerns about financial sustainability - Volatile vanadium commodity prices create uncertain revenue outlook - High fixed costs from mining operations limit operational flexibility during downturns
Recent development
Over the past few years, Largo has undertaken several strategic initiatives to transform from a traditional mining company into a diversified vanadium and clean energy business. The company's most significant strategic pivot has been the development of its Largo Clean Energy division, focusing on vanadium redox flow battery (VRFB) technology for utility-scale energy storage. This includes ongoing negotiations with Stryten Energy for a potential joint venture and the completion of its first VRFB deployment for Enel Green Power in Spain. Operational improvements have been a major focus, with the company implementing comprehensive cost reduction measures that reduced operating costs by 31% in Q3 2024. These improvements include optimizing the crushing process, reducing sodium carbonate consumption, implementing better grade control capabilities, and reducing contractor workforce by 20%. The company has also improved its vanadium recovery rates to 81.1% and increased production capacity. The company completed construction of an ilmenite concentration plant, creating a new revenue stream from co-product sales. Ilmenite production reached 16,383 tonnes in Q3 2024, representing a 90% increase from the previous quarter. This diversification helps offset some volatility in vanadium markets. Commercial strategy enhancements include the appointment of Francesco D'Alessio as Chief Commercial Officer and a refreshed sales approach focusing on high-purity vanadium products that command premium pricing. The company has also secured a vanadium supply agreement expected to contribute $23.5 million in liquidity. Recent technical reports have shown a 67% increase in mineral reserves, extending the mine life to 2054 and providing long-term operational certainty. The company has also been exploring potential platinum group metal (PGM) recovery from tailings, which could provide additional revenue diversification.
LGO company profile · for informational purposes only — not investment advice.
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