LGO · Largo Inc.

Largo Inc.'s Q1 2026 results showcased robust operational progress at the Maracás Menchen Mine, with V2O5 equivalent production more than doubling year-over-year to 2,616 tonnes, hitting the upper end of guidance thanks to 90.8% higher ore mined, improved effective grade of 0.48%, and enhanced plant stability despite slightly lower global recovery. Ilmenite production rose 86.8% to 11,514 tonnes. However, revenues dipped 2.5% to $27.5 million, primarily from 50% U.S. import tariffs on Brazilian products early in the quarter—reduced to 10% in February—limiting sales volumes and realization, with V2O5 equivalent sales up modestly 3.6% to 2,141 tonnes and revenues per pound sold at $5.80 versus $6.04 prior year. Cost controls shone through, with adjusted cash operating costs excluding royalties steady at $3.90/lb and cash operating costs excluding royalties dropping 35% to $4.25/lb, absent prior-year kiln stoppages. This drove a narrower net loss of $4.7 million ($0.07/share) from $9.2 million ($0.14/share), aided by 19% lower operating costs, 28% reduced G&A, and a $4.7 million vanadium asset recovery. Cash burn before working capital improved to $3.0 million from $8.5 million, ending with $11.2 million cash against $108.4 million debt. Management, via Co-CEOs Tellechea and Arias, emphasized disciplined execution and tariff relief enabling Q2 sales uplift into aerospace and U.S. FeV markets amid tightening supply. Guidance reaffirmed for 2026 V2O5 production of 10,500-12,000 tonnes reflects ongoing enhancements. Subsequent April production of 881 tonnes V2O5 and $19.7 million from ATM equity issuance bolster liquidity, while a filing for copper/PGM by-products signals diversification potential.