Largo produces 931 t of V2O5 equivalent in August

Executive Summary

• Largo Inc. reports sustained vanadium production (931 t V₂O₅ in August 2025) and ongoing ilmenite expansion, but acknowledges short‑term liquidity constraints that threaten operating continuity.
• The company is seeking additional financing and negotiating contract renegotiations after U.S. tariffs on Brazilian imports rose to 50 % under Executive Order 14323, impacting high‑purity vanadium sales.
• Largo warns it may be unable to meet its obligations without further capital, citing going‑concern doubts in its interim financial statements.

Key Details

• Vanadium Production: August 2025 output of 931 tonnes V₂O₅ equivalent (up from 856 t in July).
• Ilmenite Production & Expansion: July 2025 – 4,141 t; August 2025 – 3,298 t concentrate at >46 % TiO₂. Installation of additional flotation cells began September 2025 to raise capacity to 115,000 t from current 42,000 t annually; production paused in Sep, expected restart Nov 2025 with ramp‑up by year‑end. Annual ilmenite guidance unchanged at 25–35 k t for 2025.
• U.S. Sales Impact: Executive Order 14323 (effective Aug 6 2025) increased tariffs on Brazilian imports from 10 % to 50 %. No effect on ferrovanadium sales, but high‑purity vanadium contracts are delayed, with some defaults. Company is renegotiating affected contracts and exploring short‑term financing for customers.
• Liquidity Situation: Limited working capital has prevented delivery of certain vanadium products; accounts payable to mining contractors and suppliers are at risk of disruption.
• Financing Alternatives: Management evaluating several near‑term financing options; no terms disclosed.
• Going Concern Disclosure: Interim financial statements (three‑ and six‑month periods ended June 30 2025) indicate the need for additional capital to repay liabilities, fund working capital, and sustain operations. No assurance that financing will be obtained timely or in sufficient amounts.
• Strategic Asset Review: Evaluating strategic alternatives for 100 % owned tungsten projects (Northern Dancer in Yukon and Currais Novos in Brazil) to unlock value.
• Factoring Default: Claims Cirque Capital LLC is in default on factoring obligations; company seeks amicable resolution while reserving legal remedies.

Notable Quotes

“The company continues to navigate its current liquidity issues and challenging market conditions following the implementation of Executive Order 14323… we are actively evaluating options to increase liquidity and continue negotiating payment plans with our suppliers and contractors.” – Daniel Tellechea, interim CEO

“Our operational turnaround initiatives are delivering results with sustained production of vanadium pentoxide of 931 tonnes in August after 856 tonnes in July…” – Daniel Tellechea, interim CEO