Largo Inc. (LGO) reported a net loss of $68.7 million for 2025 and a $17.2 million loss for the fourth quarter, while producing 9,150 tonnes of vanadium and selling 8,686 tonnes—down 12 % from the previous year. Cash operating costs excluding royalties fell to $3.32 per pound in 2025, an 18 % improvement over $4.05 per pound in 2024, reflecting disciplined cost‑control at the Maracás Menchen mine.
In the third quarter of 2025, revenue was $33.3 million and sales totaled 2,417 tonnes, with adjusted cash operating costs of $3.03 per pound. Production in Q4 2025 rose 67 % from Q4 2024, yet sales declined 10 % year‑over‑year, underscoring the impact of U.S. tariffs on high‑purity vanadium products. The company’s guidance for 2026 remains unchanged: production of 10,500‑12,000 tonnes, sales of 7,500‑9,500 tonnes, and adjusted cash operating costs of $3.50‑$4.50 per pound.
Largo’s balance sheet shows $107.1 million in debt and $9.7 million in cash at year‑end 2025. The company has raised $19.5 million through an at‑the‑market equity offering on March 27 2026 and has restructured its Brazilian debt facilities to defer principal repayments, bolstering liquidity as it navigates a challenging market environment.
Management highlighted the recent elimination of U.S. tariffs on Brazilian vanadium in February 2026, stating: "With lower tariff constraints, Largo is well‑positioned to add more primary units to the U.S. market and enhance supply security for U.S. customers." The company also noted that the strengthening of ferrovanadium prices in the U.S. and Europe, combined with tariff relief, has supported a more constructive commercial outlook, positioning Largo to benefit from these trends after demonstrating reliability as a Western‑aligned primary vanadium producer during 2025’s depressed market conditions.
The company faces headwinds from lingering demand weakness in the steel sector and inventory build‑ups, but tailwinds include tariff relief, improved operating costs, and a strategic focus on vanadium flow‑battery technology. These factors suggest that while the 2025 results remain a loss, Largo is positioning itself for a recovery in 2026 as tariff barriers lift and demand for high‑purity vanadium resumes.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.