Largo Inc. disclosed that the purchaser failed to make the initial US$2.9 million payment under the US$56 million iron ore calcine sale agreement for up to 4.5 million tonnes, with termination planned if not received by February 20, 2026. U.S. ferrovanadium prices rose approximately 30% over the past month to mid-$17 per pound, driven by supply constraints, while the company remains positioned to supply via Canada amid 50% U.S. tariffs on Brazilian imports.
Key takeaways
Iron ore calcine deal: US$56M for up to 4.5M tonnes, initial US$2.9M payment due Jan 30, 2026 (deferred to Feb 9 week), unpaid
Second payment US$1.9M due Feb 16, 2026; contract termination if first payment not received by Feb 20, 2026
No material delivered; pursuing legal remedies and alternative buyers if terminated
U.S. FeV prices up ~30% past month from mid-$13/lb to mid-$17/lb (YTD 36-40% to $18.0-18.5/lb)
European FeV prices up 7-8% to $25.6/kg; U.S. premium >50% at ~$37-38/kg equivalent
50% U.S. tariff on Brazilian FeV/V2O5; supplying via Canadian partner under USMCA