Largo Inc. reported a record 2,961 tonnes of vanadium‑equivalent production in the fourth quarter of 2025, up 12 % from 2,635 tonnes in Q4 2024. Full‑year 2025 production totaled 9,150 tonnes, a 3 % increase over the 8,900 tonnes produced in 2024. Sales of vanadium‑equivalent material reached 2,396 tonnes in Q4 and 8,686 tonnes for the year, reflecting a 4 % decline in Q4 sales versus the previous year, largely due to U.S. tariffs on high‑purity vanadium imports from Brazil. Recovery rates improved to 77.9 % in Q4 and 80.1 % for the year, up from 76.5 % and 78.8 % respectively, indicating stronger operational efficiency at the Maracás Menchen mine.
The company’s financial performance for the quarter and year was not disclosed in detail, but the operational metrics suggest a solid execution of its turnaround plan. Production growth and higher recovery rates offset the sales decline caused by tariff‑related headwinds, supporting the company’s cost‑control focus. Management highlighted that the 5 % increase in rotary‑kiln throughput and higher ore availability were key drivers of the production gains, while the tariff environment remains a significant risk to vanadium demand in the U.S. market.
Looking ahead, Largo projected first‑half 2026 production of 5,391 tonnes (11.9 million lb), a 52 % increase over the 3,553 tonnes produced in the same period of 2025. The company reiterated a full‑year 2026 production target of 10,500–12,000 tonnes, up from the 9,150 tonnes in 2025. It also announced a postponement of the initial payment under its iron‑ore calcine sale agreement from January 30 to February 9, 2026, a move that will improve near‑term cash flow and reduce stockpile costs.
Co‑CEO Daniel Tellechea said the quarter “demonstrated the effectiveness of our operational efficiency and cost‑control initiatives, even as we navigate the challenges posed by U.S. tariffs and lower ore grades earlier in the year.” He added that the positive copper and precious‑metal flotation test results represent a promising diversification opportunity that could mitigate vanadium market volatility in the long term.
The results underscore Largo’s resilience in a market affected by tariff‑induced demand weakness and soft steel demand in China and Europe. While the company’s core vanadium production remains steady, the headwinds from U.S. tariffs and the need to manage ore grade variability highlight ongoing risks. Conversely, the improved recovery rates, higher throughput, and potential copper/PGM by‑product development signal strategic opportunities that could enhance future revenue streams and strengthen Largo’s competitive position in the global vanadium market.
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