Largo Posts 68% Revenue Growth but Wider Loss and Going Concern Doubts; New Copper-PGM Output Starts This Month
LGO sits 31% above its 52-week low of $0.55 on light trading volume (0.2× avg).
Summary
Largo's Q2 revenue jumped 68.5% to $44.0M on higher vanadium prices and volumes, and the company swung to positive Adjusted EBITDA. But the bottom line is grim: net loss widened to $22.7M, working capital deficit hit $79.3M, and management raised going concern doubts. The company is betting on new copper-PGM by-product production starting this month, guiding 300-380 tonnes per month at ~15% copper and 41 g/t PGM, using existing infrastructure. This follows the July 23 operational update and the $60.1M DoD delivery order; the new financial details and going concern warning are the key new information. Watch whether the copper-PGM shipments actually begin and generate cash before liquidity runs out.
At the time of this announcement, LGO was trading at $0.72 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $61.2M. The 52-week trading range was $0.55 to $2.70. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: TMX Newsfile.