Largo Inc.

Second-quarter revenue increased 68.5% year over year to $44 million, including $42 million from vanadium and $1.4 million from ilmenite. Vanadium production rose 28.5% to 2,900 tonnes, vanadium sales increased 53% to 2,773 tonnes of vanadium pentoxide equivalent, and ilmenite concentrate sales rose 67% to 10,059 tonnes. Adjusted EBITDA was $2.7 million versus $34,000 a year ago, mining operations adjusted EBITDA was $4.4 million, and cash provided before working capital items was $6.6 million versus $2.2 million. Cash operating costs excluding royalties were $5.10 per pound sold, or $4.12 per pound on an adjusted basis, both higher than a year ago, and the company reported a net loss of $22.7 million. On June 30, Largo had $5.1 million in cash and $114.2 million in debt. For the full year, management kept vanadium production guidance at 10,500 to 12,000 tonnes of vanadium pentoxide equivalent, sales guidance at 7,500 to 9,500 tonnes, adjusted cash operating cost guidance at $3.50 to $4.50 per pound, and introduced copper PGM guidance of 300 to 380 tonnes per month with average grades of about 15% copper, 41 grams per tonne of PGMs and gold, and 53 grams per tonne of silver.

Jesus Alberto Arias framed the quarter as evidence that the turnaround is gaining momentum, citing better ore availability, stronger production, improved sales, and the return to positive adjusted EBITDA. He emphasized that the debt restructuring, DLA contract, tariff exemption, and new copper PGM byproduct stream all broaden Largo’s opportunities and reduce near-term financial pressure. His tone was optimistic but still cautious, repeatedly noting that the company still has work to do on cost and cash generation.

James Bannantine focused on the earnings quality and cost bridge. He highlighted adjusted EBITDA of $2.7 million, cash provided before working capital of $6.6 million, and mining operations adjusted EBITDA of $4.4 million, while acknowledging higher cash operating costs of $5.10 per pound sold and $4.12 per pound adjusted, due largely to diesel, explosives, sulfur-derived reagents, and higher activity levels. He said the reported $22.7 million net loss was driven by significant noncash items, including a write-down of vanadium assets and deferred income tax expense, and stressed that the operating business moved in the right direction.

Analysts focused on the debt restructuring, DLA contract mechanics, vanadium market balance, and the new copper PGM stream. Management said the debt deal simply adds runway and does not require equity or punitive terms, and noted the final documentation is expected around mid-September. On the DLA contract, management said deliveries start at 20 tonnes per week, with DLA paying net 30 and potential to accelerate shipments as warehouse space allows. They also said the vanadium market remains oversupplied but is showing improving demand signals, especially from flow batteries and U.S. tariff support, while copper PGM already has multiple interested buyers because it is a high-grade byproduct with high-margin economics.