Highlights Of My Conversation With Our CEO Mark Smith...
* High Purity Premiums: High purity premiums will surge from roughly $.45 to a range of $1.5-$2.00 per pound starting 1/1/19. Glencore had contracts with buyers of high purity vanadium that kept a lid on premiums in 2018.
* Life Of Mine: The deposit is massive. The life of mine in no way reflects what's there and will be increased. Largo will be mining vanadium for "many, many decades". They didn't have money in the past to drill and upgrade the resource, they only proved what was needed to get funding. They're playing catch-up now. $2.5 million will be spent this year, $2.5 million next year, $750,000 the following years.
* NYSE Upgrade: Largo is working on and expecting to upgrade to the New York Stock Exchange in 2019. I asked if the company had the 300-400 shareholders required to be listed on the NYSE. Mark said Largo has about 6,000 shareholders!
* Byproduct Sales: Ilmenite (titanium) sales are on track for early 2019. Ilmenite sales are not part of the Glencore contract.
* Secondary Projects: I asked what secondary projects would Largo be interested in next. Northern Dancer, Currais Novos, or Campo Alegre. He said Campo Alegre. Alegre is another massive vanadium, titanium, iron ore project 100% owned by Largo. Titanium samples are an astonishing 25% (that's really high) with vanadium samples of around 1%, similar to the Campbell pit.
* Vanadium Prices: Mark expects vanadium prices will stay high and even increase in 2019. Part of the pause in Chinese prices is due to substituting niobium for vanadium. He said producers are now maxed-out with niobium substitutions without making extremely expensive upgrades. Even then, only so much niobium can be substituted. In some cases only vanadium can be used.
* Debt Free, Dividends & Buybacks: As of November, Largo has the cash to repay all debt. All debt will be re-payed in May, 2019. This repayment will eliminate restrictions on paying dividends and buying back shares.
Mark is as sharp as a tack! I'm so proud of Largo. When I bought at $.12 in 2016, I never dreamed they'd make $.14 a share in 3 months! I've never sold and I'm not selling. My strategy has always been to buy and hold. Saves me a lot of stress and makes taxes a lot easier. I believe LGORF will be >$5 soon. Upgrading exchanges and eliminating debt is important to me. This will allow shareholders to reinvest dividends into more shares. With the cashless warrant option, the company is basically starting to buy back shares. If prices remain where they are, I believe Q119 will be better than Q318 even with the kiln replacement. Not to mention 500 less tonnes in the market. None of these junior vanadium minors are making money and won't be for a long time, if ever. They're just trying to ride the vanadium wave and are several years away from any meaningful production. Largo is the real deal money minting machine and earnings per share are set to skyrocket!
Good Luck To All!$!$
