Largo Reports Q2 2026 Financial Results Reflecting 68% Revenue Growth and Positive Adjusted EBITDA, Despite Raw Material Input Cost Pressures; and Provides Guidance for New Copper-Platinum Group Metals Production

Largo Inc. (LGO) reported second-quarter 2026 results showing revenues of $44.0M, a 68.5% year-over-year increase from $26.1M. Vanadium sales revenue rose 67.3% to $42.6M, while ilmenite revenue increased 114.4% to $1.4M. V2O5 production reached 2,900 tonnes, up 28.5% year-over-year and near the upper end of the company's 2,500-3,000 tonne quarterly guidance. V2O5 equivalent sales were 2,773 tonnes, up 53.5% year-over-year. Realized revenue per pound sold was $6.96/lb, up 8.9% year-over-year and 20.0% quarter-over-quarter.

Adjusted EBITDA was $2.7M compared to $34k in Q2 2025, while Mining Operations Adjusted EBITDA was $4.4M versus $2.7M in the prior year period. The company reported a net loss of $22.7M compared to $5.8M in Q2 2025, driven by non-cash write-downs, deferred tax expense, and higher input costs. Cash operating costs excluding royalties were $5.10/lb compared to $4.63/lb, while adjusted cash operating costs excluding royalties were $4.12/lb versus $3.18/lb. At June 30, 2026, the cash balance was $5.1M and total debt stood at $114.2M.

Subsequent events included a $60.1M U.S. DLA delivery order, a U.S. tariff exemption for V2O5 under HTSUS 2825.30, $24.8M raised under the ATM program, and the start of full-scale copper-PGM concentrate production on August 7, 2026. New copper-PGM guidance calls for 300-380 tonnes per month at approximately 15% Cu and 41 g/t PGM, plus 53 g/t Ag. Largo reiterated its 2026 vanadium guidance, targeting production of 10,500-12,000 tonnes, sales of 7,500-9,500 tonnes, and adjusted cash operating costs excluding royalties of $3.50-$4.50/lb.

Largo Inc. (LGO) reported a widened net loss of $22.7 million for the second quarter, compared to $5.8 million in Q2 2025. Gross loss before other items stood at approximately $4.0 million, while cash reserves collapsed to $5.1 million from $11.6 million at the end of Q1 2026, despite the company’s issuance of equity through an at-the-market (ATM) program.

The company’s reported results included significant non-cash and recurring charges, including a $7.28 million inventory write-down, a $1.64 million vanadium asset write-down, and a $6.27 million deferred income tax expense. These charges cannot be dismissed entirely as one-time events, as inventory and asset write-downs have recurred across prior periods.

Most top-line operational updates had been pre-released, including Q2 production and sales on July 23, 2026, the DLA order on July 7, 2026, and the copper-PGM start-up on August 10, 2026. Consequently, these items do not constitute new information in this release. While the copper-PGM ramp and DLA order are strategically relevant, they are not yet generating confirmed cash flow and do not offset the current liquidity stress.

With $114.2 million of debt and only $5.1 million of cash, the balance sheet and liquidity risk remains the dominant issue. The company’s prior Management’s Discussion and Analysis already carried a going-concern flag, and this release does not indicate that risk has been resolved.

Largo Inc. is a Canadian-listed vanadium producer whose core asset is the Maracás Menchen Mine in Bahia, Brazil. The company produces vanadium pentoxide, vanadium trioxide, ferrovanadium, ilmenite, and copper-PGM concentrate as a by-product, and is described as the world's largest primary vanadium producer.

Largo holds a 37.4% stake in Storion Energy, a vanadium flow battery electrolyte joint venture with Stryten Energy. The company also holds 100% of the Northern Dancer tungsten-molybdenum project in Yukon, Canada, and the Currais Novos tungsten tailings project in Brazil. These tungsten assets have only 2011 preliminary economic assessments and have been under strategic alternative review.

The company is effectively a single-mine producer with jurisdiction concentration in Brazil, adding diversification only through by-products and downstream investments.