Largo signs $56M (U.S.) iron ore calcine sale agreement

Executive Summary

• Largo Inc.'s Brazilian operating subsidiary has signed the definitive agreement for the sale of up to 4.5 million tonnes of iron ore calcine material stockpile, previously announced on January 5, 2026.
• The transaction is structured as a multiyear Ex Works (EXW) contract under Incoterms, with total expected cash proceeds exceeding $56 million (U.S.).
• The company anticipates the deal will improve near-term cash flow and reduce long-term stockpile management costs, while unlocking value from a byproduct stream not previously captured in technical reports to offset low vanadium prices.

Key Details

• Transaction Volume: Up to 4.5 million tonnes of iron ore calcine material stockpile.
• Total Value: Expected cash proceeds in excess of $56 million (U.S.).
• Contract Structure: Multiyear Ex Works (EXW) contract under Incoterms.
• Payment Schedule:
  • First payment: $2.9 million (U.S.) due by January 30, 2026.
  • Second payment: $1.9 million (U.S.) due by February 16, 2026.
  • Subsequent payments: Monthly payments of $1.9 million (U.S.) expected to commence in April 2026, subject to agreement terms.
• Strategic Impact:
  • Improves near-term cash flow.
  • Reduces long-term stockpile management costs and disposal requirements.
  • Maintains strategic focus on core vanadium business.
  • Byproduct credits from iron ore calcine were not previously captured in the company's previous technical reports.
  • Helps partially offset currently low vanadium prices.

Notable Quotes

• "The company anticipates that the transaction will improve the near-term cash flow and reduce long-term stockpile management costs and disposal requirements."
• "Largo is maintaining a clear strategic focus on its core vanadium business while unlocking value from a new stream of iron ore calcine byproduct."