Largo Starts Production of Copper and Platinum Group Metals as By-Products of Vanadium Operations Following Mining Agency Approval
Largo secures approval for copper and PGM byproducts at its existing Brazilian plant, targeting higher margins through enhanced processing capabilities.
Largo Inc. (LGO) announced on 2026-08-10 that it has received approval from Brazil's National Mining Agency (ANM) to produce and sell copper concentrates containing platinum group metals (PGM) as by-products from the Maracás Menchen mine. The company is immediately beginning a ramp-up of copper-PGM concentrate production, temporarily suspending ilmenite (titanium) concentrate output to prioritize this new stream.
The operation will utilize existing ilmenite flotation infrastructure, requiring minimal incremental capital. Industrial-scale tests have confirmed the recovery of commercial-grade concentrates containing platinum, gold, palladium, silver, cobalt, and nickel. Management states that copper-PGM concentrates are expected to generate higher profit margins than ilmenite. Further evaluation is underway to produce ilmenite from copper flotation tailings at a later date. Guidance for copper-PGM production and sales will be provided with the Q2 2026 earnings release on 2026-08-14.
Largo Inc. (LGO) has secured approval that marks the culmination of a process initiated by initial copper-PGM test results disclosed in early 2026. The company confirmed that commercial production can begin within months, establishing a clear path to near-term revenue.
By replacing lower-margin ilmenite with copper-PGM concentrates, Largo expects to achieve higher profit margins. This shift directly addresses a key operational weakness: the ongoing inability to generate positive cash flow from vanadium-alone operations.
However, the company has not yet provided production or financial guidance for the new by-product stream. Existing liquidity constraints, including $108.4M in debt due within 12 months, negative working capital, and a going-concern warning, temper the immediate impact of the news.
Largo Inc. is a primary vanadium producer operating its flagship Maracás Menchen mine and processing complex in Bahia, Brazil. The facility also produces ilmenite and, according to recent news, copper-PGM concentrates. The company holds 100% ownership of tungsten assets, including Northern Dancer in Yukon, Canada, and Currais Novos in Brazil, which are currently held for strategic alternatives. Additionally, Largo maintains a 37.4% interest in Storion Energy, a US-based manufacturer of vanadium flow battery electrolytic systems.
For 2026, the company has provided production guidance of 10,500–12,000 tonnes of V₂O₅, with projected cash costs between $3.50 and $4.50 per pound.