Largo's Copper-PGM Sales Hit 90% Margins; Plans to Double Output by 2027
LGO sits 22% above its 52-week low of $0.55 on light trading volume (0.2× avg).
Summary
Largo disclosed that its copper-PGM concentrate sales are generating approximately US$4.7 million in revenue with operating margins above 90%, making it the company's highest-margin product. The company is evaluating a potential expansion to double copper-PGM concentrate production capacity during 2027. Additionally, Largo plans to increase high-purity vanadium production to approximately 68% of total vanadium output, which is expected to improve cash flows despite lower overall production volumes. The company also executed a definitive debt-restructuring agreement with Banco do Brasil, covering approximately 48% of its US$82 million in commercial bank senior debt. This follows the earlier agreement with Caixa Econômica Federal and the regulatory approval for copper-PGM production in August. The strategic shift toward higher-margin products and progress on debt restructuring address key concerns raised in the August 14 going concern disclosure.
At the time of this announcement, LGO was trading at $0.67 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $66.9M. The 52-week trading range was $0.55 to $2.70. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: TMX Newsfile.