All amounts expressed are in U.S. dollars, denominated by "$".
Q3 2025 and Other Highlights
-- Revenues of $33.3 million ($32.3 million from vanadium sales and $1.0
million from ilmenite sales) in Q3 2025 vs. revenues of $29.9 million
($27.2 million from vanadium sales and $2.7 million from ilmenite sales)
in Q3 2024
-- Revenues per lb sold3 of V2O5 equivalent of $6.06 in Q3 2025 vs. $6.28
in Q3 2024
-- Adjusted cash operating costs excluding royalties per pound sold3 of
$3.03 in Q3 2025, a 2% improvement over the $3.08 per lb sold in Q3 2024,
and a 5% improvement over the $3.18 per lb sold in Q2 2025
-- Operating cash flows before working capital items of $11.9 million in
Q3 2025, a $13.9 million increase over negative $2.0 million in Q3 2024
-- Mining operations adjusted EBITDA3 of $4.0 million in Q3 2025 vs. $2.4
million in Q3 2024
-- Net loss before tax of $10.4 million (including $3.7 million in
non-recurring items) in Q3 2025, vs. net loss before tax of $11.9 million
(including $3.3 million in non-recurring items) in Q3 2024. Net loss of
$36.6 million in Q32025 vs. net loss of $10.1 million in Q3 2024, with
difference primarily related to the non-cash derecognition of a deferred
tax asset of $28.4 million
-- Basic loss per share of $0.57 in Q3 2025 vs. basic loss per share of
$0.16 in Q3 2024
-- Production of 2,636 tonnes (5.8 million lbs1) of V2O5 in Q3 2025 vs.
3,072 tonnes in Q3 2024 and 2,256 tonnes in Q2 2025
-- V2O5 equivalent sales of 2,417 tonnes (inclusive of 17 tonnes of
purchased material) in Q3 2025 vs. 1,961 tonnes (inclusive of 124 tonnes
of purchased material) sold in Q3 2024
-- The Company produced 8,643 tonnes of ilmenite concentrate in Q3 2025
vs. 8,149 tonnes in Q2 2025 and sold 6,358 tonnes vs. 6,024 tonnes
-- Storion Energy LLC ("Storion") signs strategic supply agreement with
TerraFlow Energy LLC to supply vanadium electrolyte and battery stacks;
Storion secures electrolyte lease for 48 MWh flow battery project in
Texas, supported by Largo Physical Vanadium Corp.'s unique electrolyte
leasing model
-- Started installation of additional flotation cell circuits to increase
ilmenite production capacity to 115,000 tonnes from 42,000 tonnes
annually. Operations expected to resume in late November 2025 with ramp
up to the expanded production levels currently expected to occur by year
end
-- Subsequent to Q3 2025, Largo raised US$23.4 million through a
Registered Direct Offering and Private Placement ("Offering"), and
received an executed binding term sheet with the five Brazilian Lenders
representing $84.2 million of debt to defer principal repayments to
September 18, 2026, following the Company securing capital of at least
$22 million through the Offering
-- Subsequent to Q3 2025, the Company signed an amended agreement with the
counterparty who sent the Company a default notice for failure to deliver
900 tonnes of V O at the scheduled time. The Company agreed to deliver
the remaining 900 tonnes of V O by January 2026 and the counterparty has
an option to purchase between 0 - 500 tonnes of V O from June 2028 to
October 2028.
Vanadium Market Update(2)
-- During Q3 2025, vanadium prices remained under pressure in Europe and
China, due to continued low demand in the steel and infrastructure sector
and an oversupply from Chinese and Russian producers
-- On October 23, 2025, the European Union announced sanctions against the
largest vanadium producer outside of China.
-- The US FeV market remains stronger than the European market: As of
November 7, 2025, the average benchmark FeV price per lb V was $13.45 in
the U.S. (or approximately $29.65 per kg FeV), which is 24% greater than
the average benchmark price per kg of FeV of $23.93 in Europe, driven by
increased demand amid ongoing political developments and policy shifts
impacting supply dynamics
-- The average benchmark price per pound of V2O5 in Europe was $5.23 in Q3
2025, an 8% decrease from the average of $5.71 seen in Q3 2024
-- The average benchmark price per kg of FeV in Europe was $23.68 in Q3
2025, a 9% decrease from the average of $25.95 seen in Q3 2024
TORONTO--(BUSINESS WIRE)--November 12, 2025--
Largo Inc. ("Largo" or the "Company") (TSX: LGO) $(LGO)$ today released financial results for the three months and nine ended September 30, 2025. The Company reported quarterly vanadium pentoxide ("V(2) O(5) ") equivalent sales of 2,417 tonnes at an adjusted cash operating cost excluding royalties per pound(5) sold of $3.03.
Daniel Tellechea, Director and Interim CEO of Largo commented: "In Q3 2025, we continued to improve our production, increasing it to 2,636 tonnes, up from 2,256 tonnes in Q2 and 1,297 tonnes in Q1. Additionally, this has led to a reduction of our adjusted cash operating costs excluding royalties to $3.03/lb, down from $3.88/lb in Q1. With positive operational improvements on track at the Maracás Menchen Mine, we can turn our attention to our financial position." He continued: "The recent $23.4 million equity raise and the principal deferral from our Brazilian lenders are two actions taken by Largo."
He concluded: "We continue to look for ways to deliver high purity vanadium products for the US and European aerospace and defense industries, and to navigate the geopolitical landscape, inclusive of the US tariffs on our Brazilian products as well as the ongoing geopolitical developments and policy shifts impacting supplying dynamics."
Financial and Operating Results -- Highlights
Three months ended Nine months ended
--------------
(thousands of
U.S. dollars,
except as
otherwise September 30, September 30, September 30, September 30,
stated) 2025 2024 2025 2024
-------------- -------------- -------------- -------------- --------------
Revenues 33,264 29,906 87,616 100,652
Operating
costs (34,314) (29,538) (106,848) (115,624)
Net loss (36,616) (10,086) (51,573) (37,575)
Basic loss per
share (0.57) (0.16) (0.80) (0.59)
Adjusted
EBITDA(3) 1,951 (1,155) (789) (4,413)
Mining
operations
adjusted
EBITDA(3) 3,984 2,360 5,943 3,510
Cash provided
(used) before
working
capital
items 11,919 (1,994) 2,803 3,413
Cash operating
costs excl.
royalties(3)
($/lb) 3.70 3.12 4.86 5.18
Adjusted cash
operating
costs excl.
royalties(3)
($/lb) 3.03 3.08 3.34 4.34
Cash 7,847* 30,450** 7,847* 30,450**
Debt 106,005* 93,704** 106,005* 93,704**
Total mined --
dry basis
(tonnes) 3,865,738 3,815,827 12,060,606 10,276,249
Total ore
mined
(tonnes) 425,461 386,221 1,149,278 1,038,243
Effective
grade(4) of
ore mined
(%) 0.52 0.76 0.49 0.66
V(2) O(5)
equivalent
produced
(tonnes) 2,636 3,072 6,189 7,490
V(2) O(5)
equivalent
sales
(tonnes) 2,417 1,961 6,290 6,567
Ilmenite
concentrate
produced
(tonnes) 8,643 16,383 22,954 34,571
-------------- -------------- -------------- -------------- --------------
*As at
September 30,
2025 **As at
September
30,2024
Key Highlights
-- The Company reported a net loss of $36.6 million for Q3 2025, compared
to the net loss of $10.1 million for Q3 2024. This was primarily related
to the non-cash derecognition of the deferred tax asset in Q3 2025 of
$28.4 million. Operating costs increased to $34.3 million in Q3 2025 from
$29.5 million in Q3 2024, which was primarily driven by an 11% increase
in sales.
-- Operating cash flows before working capital items increased to $11.9
million in Q3 2025, up from negative $2.0 million in Q3 2024, and Q3 2025
adjusted EBITDA increased to $2.0 million up from negative $1.2 million
in Q3 2024. This is despite lower prices Q3 2025 relative to Q3 2024.
-- Adjusted cash operating costs excluding royalties3 reduced by 2% to
$3.03 per lb sold in Q3 2025 over Q3 2024 ($3.08 per lb sold) despite 14%
production reduction in Q3 2025 over Q3 2024. This is a result of the
Company's operational turnaround plan and cost optimization initiatives
even as it has increased production throughout 2025.
-- Professional, consulting and management fees of $3.1 million in Q3 2025
decreased from Q3 2024 by 48%, which was primarily attributable to the
Company's focus on reducing costs, including its activity at Largo Clean
Energy Corp. ("LCE") during the quarter. Additionally, Other G&A expenses
of 1.1 million and technology start-up costs of $0.2 million in Q3 2025
were 47% and 85% less than Q3 2024.
-- Subsequent to Q3 2025, October 2025 production and sales were 900
tonnes and 400 tonnes of V2O5 equivalent, respectively. Under the terms
of the Company's amended inventory supply agreement, a further 100 tonnes
of V2O5 equivalent, which are subject to refund, was delivered in October
2025. No revenues are recognized for these deliveries and amounts
(MORE TO FOLLOW) Dow Jones Newswires
November 12, 2025 16:05 ET (21:05 GMT)