Largo Inc (LGO)

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Largo Resources Announces Second Quarter 2020 Results Highlighted by Continued Low-cost Operations; Overall Sales and Trading Performance In-Line with Expectations

August 13, 2020

All dollar amounts are in U.S. dollars, unless otherwise noted.

Q2 2020 Highlights

- Production of 2,562 tonnes (5.6 million pounds 1 ) of V2O5, an increase of 2.0% over Q2 2019
- Two consecutive months of V2O5 production above nameplate capacity: 1,052 tonnes in May 2020 and 1,030 tonnes in June 2020
- Global V2O5 recovery rate 2 of 80.8%; Second quarter of strong global recoveries in 2020
- Solid financial position: Cash at June 30, 2020 totaled $78.2 million
- Record low cash operating costs excluding royalties 3 of $1.89 per lb of V2O5 , 44% decrease over Q2 2019 ( after tax credit benefits of $2.2 million )
- Revenues of $8.4 million (net of the re-measurement of trade receivables / payables of $2.4 million on vanadium sales from contracts with customers of $10.8 million)
- Net loss of $7.0 million and a loss per share of $0.01
- Company maintains its 2020 sales, cost and production guidance

Other Significant Highlights

- 2019 Sustainability Report released: Including improved performance metrics and new reporting standards
- Nameplate capacity increase by 10%: Planned kiln upgrades and cooler maintenance scheduled for Q4 2020 with a capex of $1.3 million
- 2020 drilling program underway following delays caused by COVID-19


Read more at:
https://www.largoresources.com/investors/news/press-release-details/2020/Largo-Resources-Announces-Second-Quarter-2020-Results-Highlighted-by-Continued-Low-cost-Operations-Overall-Sales-and-Trading-Performance-In-Line-with-Expectations/default.aspx