- Largo Inc. (LGO, Financial) reports Q1 2025 revenues of $28.2 million, down from $42.2 million in Q1 2024 due to lower vanadium prices and sales volumes.
- The company achieved a 15% reduction in operating costs, totaling $42.5 million, and a 27% reduction in adjusted cash operating costs excluding royalties, despite lower production.
- Largo posted a net loss of $9.2 million for Q1 2025, an improvement from a $13.0 million loss in Q1 2024, aided by cost reductions and gains from strategic transactions.
In its first quarter of 2025 financial results, Largo Inc. (LGO) has reported revenues of $28.2 million, a significant decrease from $42.2 million in Q1 2024. This decline is attributed to continued downward pressure in vanadium prices alongside reduced sales volumes, with V2O5 equivalent sales totaling 2,046 tonnes compared to 2,765 tonnes in the prior year.
Despite the challenging market conditions, the company successfully reduced its overall operating costs by 15%, which amounted to $42.5 million in Q1 2025, compared to $49.7 million in the same period last year. Adjusted cash operating costs excluding royalties decreased by 27% to $3.88 per pound, reflecting Largo's ongoing commitment to cost-control and operational efficiency improvements.
Largo's net loss for the quarter was $9.2 million, down from $13.0 million in Q1 2024. This improvement was supported by a $5.2 million gain from the disposal of interest in a subsidiary and the company's effective cost-reduction strategies.
Operational challenges in Q1 2025 included mining lower-grade ore, reduced equipment availability, and adjustments following a kiln refractory replacement completed in the previous quarter. Consequently, V2O5 production decreased to 1,297 tonnes from the previous year's 1,729 tonnes.
Largo remains optimistic about returning to normalized production levels and aims to secure near-term financing solutions to enhance its liquidity position amidst ongoing market uncertainties. The vanadium market in Europe and China remains suppressed due to low steel demand and oversupply, although U.S. ferrovanadium prices have seen a 9% increase since the start of the year, driven by geopolitical tensions.
