Largo Reports Q4 and Full Year 2024 Operational and Sales Results; Provides 2025 Outlook and Guidance
Largo Inc. (“Largo” or the “Company”) (TSX: LGO) (NASDAQ: LGO) today announced its annual production and sales results for 2024, along with its 2025 outlook and guidance. The company achieved 9,264 tonnes (20.4 million lbs) of vanadium pentoxide (V₂O₅) equivalent production from its Maracás Menchen Mine and sold 9,600 tonnes of V₂O₅ equivalent, reflecting ongoing efforts to enhance operational efficiencies, expand mineral resources and reserves, and solidify its position as a reliable supplier of high-purity vanadium.
Operational Highlights
Daniel Tellechea, Interim CEO of Largo, commented on the company’s performance: “In 2024, our team remained focused on implementing operational efficiencies, cost reduction measures, and strengthening Largo’s position as a reliable, western vanadium supplier. The results of our updated Technical Report marked a significant milestone for Largo, increasing our mineral reserves by 67% and mineral resources by 64%, extending the Maracás Menchen Mine’s life to 31 years. While production in 2024 was impacted by lower ore grades derived from our open pit mine sequencing plans and maintenance efforts, we continue to take decisive steps to reduce costs and enhance operational efficiencies at the mine. These initiatives are designed to support future operational stability, though near-term production challenges remain as we continue to optimize operations by accelerating waste rock pre-stripping at the Maracás Menchen Mine.”
He further elaborated: “Our recent announcement regarding the formation of Storion Energy with Stryten Energy strengthens our strategic investment in vanadium-based energy storage and positions us to capitalize on the growing demand for long-duration energy storage solutions. Looking ahead, our focus remains on reducing costs further, optimizing operational efficiencies, and ensuring disciplined execution of our mining plan. As we continue to implement these improvements, we expect to drive greater reliability in our operations going forward.”
Maracás Menchen Mine Operational and Sales Results
Q4 2024 vs. Q4 2023 and Full Year 2024 vs. 2023
| Metric | Q4 2024 | Q4 2023 | 2024 | 2023 |
|---|---|---|---|---|
| Total Mined – Dry Basis (tonnes) | 3,673,416 | 3,490,711 | 13,949,665 | 14,864,394 |
| Total Ore Mined (tonnes) | 476,742 | 473,958 | 2,249,759 | 1,752,982 |
| Ore Grade Mined (%) | 0.49 | 0.82 | 0.63 | 0.81 |
| Concentrate Produced (tonnes) | 75,051 | 112,512 | 389,520 | 377,736 |
| Grade of Concentrate (%) | 2.73 | 3.01 | 2.90 | 3.08 |
| Global Recovery (%) | 77.9 | 79.4 | 76.4 | 80.0 |
| V₂O₅ produced (Flake + Powder) (tonnes) | 1,775 | 2,768 | 9,264 | 9,681 |
| High purity V₂O₅ equivalent produced (%) | 26% | 60% | 23% | 47% |
| V₂O₅ produced (equivalent pounds) | 3,913,200 | 6,102,388 | 20,423,599 | 21,342,926 |
| Total V₂O₅ equivalent sold (tonnes) | 3,033 | 2,605 | 9,600 | 10,396 |
| Produced V₂O₅ equivalent sold (tonnes) | 3,025 | 2,466 | 9,184 | 9,467 |
| Purchased V₂O₅ equivalent sold (tonnes) | 8 | 139 | 416 | 929 |
| Ilmenite concentrate produced (tonnes) | 10,292 | 8,970 | 44,863 | 8,970 |
| Ilmenite concentrate sold (tonnes) | 10,570 | – | 42,916 | – |
Q4 2024 and Other Updates
V₂O₅ equivalent production in Q4 2024 was 1,775 tonnes, representing a 36% decrease from Q4 2023 (2,768 tonnes) and a 42% decrease from Q3 2024 (3,072 tonnes). Production was impacted by the scheduled shutdown in November and December for kiln and cooler refractory maintenance, as well as a reduction in ore grade, which was expected. While the maintenance process was completed, unforeseen challenges in the refractory replacement extended the timeline, further affecting production levels in Q4 2024. The company took corrective measures to address these issues and remains focused on optimizing the overall efficiency of the kiln moving forward.
Total ore mined in Q4 2024 was 476,742 tonnes, aligning with the 473,958 tonnes mined in Q4 2023. The effective ore grade was 0.49% V₂O₅ in Q4 2024, lower than the 0.76% in Q3 2024 and 0.82% in Q4 2023. Global recoveries in Q4 2024 were 77.9%, down 1.9% from Q4 2023 (79.4%). Monthly global recoveries were 78.2% in October, 76.7% in November, and 78.1% in December.
High purity vanadium products represented 26% of total production in Q4 2024, compared to 60% in Q4 2023.
Ilmenite production continued its ramp-up in Q4 2024, reaching 10,292 tonnes, with 3,742 tonnes produced in October, 3,187 tonnes in November, and 3,364 tonnes in December. The company continues to refine its processes to improve efficiency and throughput, with further optimization efforts underway as operations stabilize and quality enhancements take effect.
2025 Guidance
V₂O₅ Equivalent Production, Sales, and Cash Operating Costs Excluding Royalties Guidance
| Quarter | Low (tonnes) | High (tonnes) | Low (tonnes) | High (tonnes) | Low (tonnes) | High (tonnes) | Low (tonnes) | High (tonnes) | Low (tonnes) | High (tonnes) |
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | 1,600 | 2,100 | 1,500 | 2,000 | 4.50 | 5.50 | – | – | 9,500 | 11,500 |
| Q2 | 2,500 | 3,000 | 2,000 | 2,500 | 4.00 | 5.00 | – | – | – | – |
| Q3 | 2,700 | 3,200 | 2,000 | 2,500 | 4.00 | 5.00 | – | – | – | – |
| Q4 | 2,700 | 3,200 | 2,000 | 2,500 | 4.50 | 5.50 | – | – | – | – |
| Full Year 2025 | 9,500 | 11,500 | 7,500 | 9,500 | 4.50 | 5.50 | – | – | – | – |
Ilmenite Concentrate Production and Sales Guidance
| Quarter | Low (tonnes) | High (tonnes) | Low (tonnes) | High (tonnes) |
|---|---|---|---|---|
| Q1 | 25,000 | 35,000 | 20,000 | 30,000 |
| Q2 | 25,000 | 35,000 | 20,000 | 30,000 |
| Q3 | 25,000 | 35,000 | 20,000 | 30,000 |
| Q4 | 25,000 | 35,000 | 20,000 | 30,000 |
| Full Year 2025 | 100,000 | 140,000 | 80,000 | 120,000 |
About Largo
Largo Inc. is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in Brazil. As one of the world’s largest primary vanadium producers, Largo supplies critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.
Largo is also strategically invested in the clean energy storage sector through its 50% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S.
Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol “LGO“. For more information on the company, please visit www.largoinc.com.
