Q2 2026 Largo Inc Earnings Call
Operator: Good morning, ladies and gentlemen. Welcome to Largo's Q2 2026 earnings call. This conference is being recorded and the replay will be available at the company's website at largoinc.com. We would like to inform that all attendees will be listen-only mode on the conference during the presentation. Questions must be submitted in writing using the Q&A function on the webcast platform. The company will be reviewing the questions received and select a number for management to address. Similar questions may be combined, and we may not be able to answer every question submitted. Before we continue, please note that today's discussion may include forward-looking statements and references to non-GAAP financial measures. These statements are subject to the risks and uncertainties described in Largo's public filings. Reconciliations of non-GAAP measures and additional information are included in the company's Q2 2026 earnings release, financial statements, and MD&A.
Operator: Good morning, ladies and gentlemen. Welcome to Largo's Q2 2026 earnings call. This conference is being recorded, and the replay will be available at the company's website at largoinc.com. We would like to inform that all attendees will be listen-only mode on the conference during the presentation. Questions must be submitted in writing using the Q&A function on the webcast platform. The company will be reviewing the questions received and select a number for management to address. Similar questions may be combined, and we may not be able to answer every question submitted. Before we continue, please note that today's discussion may include forward-looking statements and references to non-GAAP financial measures. These statements are subject to the risks and uncertainties described in Largo's public filings. Reconciliations of non-GAAP measures and additional information are included in the company's Q2 2026 earnings release, financial statements, and MD&A.
Speaker #2: Good morning, ladies and gentlemen. Welcome to Largo's second quarter 2026 earnings call. This conference is being recorded, and the replay will be available on the company's website at largoinc.com.
Speaker #2: We would like to inform you that all attendees will be in listen-only mode during the conference presentation. Questions must be submitted in writing using the Q&A function on the webcast platform.
Speaker #2: The company will be revealing the questions received and selecting a number for management to address. Similar questions may be combined, and we may not be able to answer every question submitted.
Speaker #2: Before we continue, please note that today's discussion may include forward-looking statements and references to non-GAAP financial measures. These statements are subject to the risks and uncertainties described in Largo's public filings.
Speaker #2: Reconciliations of non-GAAP measures and additional information are included in the company's second quarter 2026 earnings release, financial statements, and MD&A. Present at this conference, we have Mr. Alberto Arias, Executive Chairman and Co-Chief Executive Officer, and Mr. Jim Ballantine, Co-Chief Executive Officer.
Operator: Presenting this conference, we have Mr. Alberto Arias, Executive Chairman and Co-Chief Executive Officer, and Mr. James Bannantine, Co-Chief Executive Officer. Now I will turn the conference over to Mr. Arias and Mr. Bannantine. Please, you may begin your conference.
Operator: Presenting this conference, we have Mr. Alberto Arias, Executive Chairman and Co-Chief Executive Officer, and Mr. Jim Bannantine, Co-Chief Executive Officer. Now I will turn the conference over to Mr. Arias and Mr. Bannantine. Please, you may begin your conference.
Speaker #2: Now, I will turn the conference over to Mr. Arias and Mr. Ballantine. Please, you may begin your conference.
Speaker #3: Thank you, and good afternoon, everyone. Thank you for joining us today. The second quarter shows us the work underway across Largo is gaining real momentum.
Alberto Arias: Thank you, and good afternoon, everyone, and thank you for joining us today. The Q2 show us the work underway across Largo is gaining real momentum. We produced more, sold more, grew revenue, and returned to positive adjusted EBITDA. Just as importantly, the progress we made since the quarter end across our balance sheet, our US commercial position, and our copper PGM initiative have strengthened the business and broadened the opportunities ahead. Let us start with our Q2 operating results. Ore availability improved during the quarter. Total ore mined increased 46.6% year-over-year to 712,198 tons, reflecting better mine access and continued improvement in execution. The better ore availability, together with improved plant stability, helped lift vanadium production 28.5% to 2,900 tons, near the upper end of our quarterly guidance range.
Alberto Arias: Thank you, and good afternoon, everyone, and thank you for joining us today. The Q2 show us the work underway across Largo is gaining real momentum. We produced more, sold more, grew revenue, and returned to positive adjusted EBITDA. Just as importantly, the progress we made since the quarter end across our balance sheet, our US commercial position, and our copper PGM initiative have strengthened the business and broadened the opportunities ahead. Let us start with our Q2 operating results. Ore availability improved during the quarter. Total ore mined increased 46.6% year-over-year to 712,198 tons, reflecting better mine access and continued improvement in execution. The better ore availability, together with improved plant stability, helped lift vanadium production 28.5% to 2,900 tons, near the upper end of our quarterly guidance range.
Speaker #3: We produced more, sold more, grew revenue, and returned to positive adjusted EBITDA. Just as important is the progress we've made since the quarter end across our balance sheets and our U.S. operations.
Speaker #3: Our commercial position and our copper PGM initiative have strengthened the business and broadened the opportunities ahead. Let's start with our second quarter operating results. Our availability improved during the quarter.
Speaker #3: Total ore mined increased 46.6% year over year, to 712,198 tons, reflecting better mine access and continued improvement in execution. The better ore availability, together with improved plant stability, helped lift vanadium production 28.5% to 2,900 tons, near the upper end of our quarterly guidance range.
Speaker #3: For the first half of the year, production reached 5,516 tons, up 55.2% from the same period last year. Importantly, our commercial performance kept pace with the improvement in production.
Alberto Arias: For the H1 of the year, production reached 5,516 tons, up 55.2% from the same period last year. Importantly, our commercial performance kept pace with the improvement in production. Vanadium sales increased 53% to 2,773 tons of vanadium pentoxide equivalent. Ilmenite concentrate sales also performed well, increasing 67% to 10,059 tons. The market backdrop also became more supportive. European vanadium pentoxide benchmark averaged $6.03 per pound, up 17.5% year-over-year. European ferrovanadium prices increased 15.6%, while the average US ferrovanadium benchmark also rose 45.8%. The stronger pricing flowed through our realized revenue per pound sold, which increased to $6.96 from $5.80 in the Q1, and $6.39 a year ago. The combination of higher volumes and better pricing translated directly into our financial results. Revenue increased 68.5% to $44 million, including $42 million from vanadium, and $1.4 million from ilmenite. Jim?
Alberto Arias: For the H1 of the year, production reached 5,516 tons, up 55.2% from the same period last year. Importantly, our commercial performance kept pace with the improvement in production. Vanadium sales increased 53% to 2,773 tons of vanadium pentoxide equivalent. Ilmenite concentrate sales also performed well, increasing 67% to 10,059 tons. The market backdrop also became more supportive. European vanadium pentoxide benchmark averaged $6.03 per pound, up 17.5% year-over-year. European ferrovanadium prices increased 15.6%, while the average US ferrovanadium benchmark also rose 45.8%. The stronger pricing flowed through our realized revenue per pound sold, which increased to $6.96 from $5.80 in the Q1, and $6.39 a year ago. The combination of higher volumes and better pricing translated directly into our financial results. Revenue increased 68.5% to $44 million, including $42 million from vanadium and $1.4 million from ilmenite. Jim?
Speaker #3: Vanadium sales increased 53% to 2,773 tons of vanadium pentoxide equivalent. Ilmenite concentrate sales also performed well, increasing 67% to 10,059 tons. The market backdrop also became more supportive.
Speaker #3: European vanadium pentoxide benchmark averaged $6.03 per pound, up 17.5% year-over-year. European ferrovanadium prices increased 15.6%, while the average U.S. ferrovanadium benchmark also rose 45.8%.
Speaker #3: The stronger pricing flowed through our realized revenue per pound sold, which increased to $6.96 from $5.80 in the first quarter, and $6.39 a year ago.
Speaker #3: The combination of higher volumes and better pricing translated directly into our financial results. Revenue increased 68.5% to $44 million, including $42 million from vanadium and $1.4 million from ilmenite.
Speaker #3: Jim?
Speaker #4: Thanks, Alberto. This is Jim on the financial front. Adjusted EBITDA returned to positive territory at $2.7 million, compared with $34,000 a year ago.
Jim Bannantine: Thanks, Alberto. This is Jim. On the financial front, adjusted EBITDA returned to positive territory at $2.7 million, compared with $34,000 a year ago. Mining operations adjusted EBITDA increased 64.8% to $4.4 million. Cash generation improved as well. Cash provided before working capital items more than tripled to $6.6 million from $2.2 million in the prior year period. Turning to costs, the quarter reflected a combination of higher input prices and increased operating activity as sales volumes grew. Cash operating costs, excluding royalties, were $5.10 per pound sold, compared with $4.63 a year ago. On an adjusted basis, cash operating costs, excluding royalties, were $4.12 per pound, compared with $3.18 per pound a year ago. These reflect the increased material costs from the Iran war.
Jim Bannantine: Thanks, Alberto. This is Jim. On the financial front, adjusted EBITDA returned to positive territory at $2.7 million, compared with $34,000 a year ago. Mining operations adjusted EBITDA increased 64.8% to $4.4 million. Cash generation improved as well. Cash provided before working capital items more than tripled to $6.6 million from $2.2 million in the prior-year period. Turning to costs, the quarter reflected a combination of higher input prices and increased operating activity as sales volumes grew. Cash operating costs, excluding royalties, were $5.10 per pound sold, compared with $4.63 a year ago. On an adjusted basis, cash operating costs, excluding royalties, were $4.12 per pound, compared with $3.18 per pound a year ago. These reflect the increased material costs from the Iran war.
Speaker #4: Mining operations adjusted EBITDA increased 64.8% to $4.4 million. Cash generation improved as well, with cash provided before working capital items more than tripling to $6.6 million, from $2.2 million in the prior year period.
Speaker #4: Turning to costs, the quarter reflected a combination of higher input prices and increased operating activity as sales volumes grew. Cash operating costs, excluding royalties, were $5.10 per pound sold.
Speaker #4: Compared with $4.63 a year ago. On an adjusted basis, cash operating costs, excluding royalties, were $4.12 per pound, compared with $3.18 per pound a year ago.
Speaker #4: These reflect the increased material costs from the Iran War. The increase largely reflected the higher prices for diesel, explosives, and sulfur-derived reagents, together with the higher level of activity needed to support the increased sales.
Jim Bannantine: The increase largely affected the higher prices for diesel, explosives, and sulfur-derived reagents, together with the higher level of activity needed to support the increased sales. Some of these pressures are external, but the response is within our control in the form of disciplined execution, stable plant performance, and tighter cost management. As production and sales strengthen, our goal is to convert that momentum into better unit economics, margins, and cash generation. On the bottom line, we reported a net loss of $22.7 million. It is important to put that result into context. The quarter included significant non-cash items, principally a write-down of vanadium assets and a deferred income tax expense. It also included higher operating, professional, and finance costs.
Jim Bannantine: The increase largely affected the higher prices for diesel, explosives, and sulfur-derived reagents, together with the higher level of activity needed to support the increased sales. Some of these pressures are external, but the response is within our control in the form of disciplined execution, stable plant performance, and tighter cost management. As production and sales strengthen, our goal is to convert that momentum into better unit economics, margins, and cash generation. On the bottom line, we reported a net loss of $22.7 million. It is important to put that result into context. The quarter included significant non-cash items, principally a write-down of vanadium assets and a deferred income tax expense. It also included higher operating, professional, and finance costs.
Speaker #4: Some of these pressures are external, but the response is within our control in the form of disciplined execution, stable plant performance, and tighter cost management.
Speaker #4: As production and sales strengthen, our goal is to convert that momentum into better unit economics, margins, and cash generation. On the bottom line, we reported a net loss of $22.7 million.
Speaker #4: It is important that that result is considered in context. The quarter included significant non-cash items, principally a write-down of vanadium assets and a deferred income tax expense.
Speaker #4: It also included higher operating, professional, and finance costs. We don't minimize the reported loss, but the return to positive adjusted EBITDA and the improvement in cash provided before working capital adjustments show that the underlying business moved in the right direction.
Jim Bannantine: We don't minimize the reported loss, but the return to positive adjusted EBITDA and the improvement in cash provided before working capital adjustments show that the underlying business moved in the right direction.
Jim Bannantine: We don't minimize the reported loss, but the return to positive adjusted EBITDA and the improvement in cash provided before working capital adjustments show that the underlying business moved in the right direction.
Alberto Arias: Let me now turn on what happened since the quarter end, because these developments meaningfully change the context for Largo. First, we added to the management team, Jim Valentine, as Co-CEO of Largo. I have known Jim for over 15 years, when my private equity fund was one of the largest shareholders of Aura Minerals. Jim was appointed CEO of Aura back then, and I saw firsthand the positive contribution Jim had to that company, which was a great investment for my fund and all its shareholders. Moving back to Largo. On 30 June, Largo had $5.1 million in cash and $114.2 million in debt. Addressing our short-term maturities was therefore an immediate priority. On 20 August, we announced a binding agreement with Banco do Brasil, BTG Pactual, Bradesco, Santander, and Caixa Econômica Federal to restructure approximately $82.2 million of outstanding commercial debt.
Alberto Arias: Let me now turn on what happened since the quarter end, because these developments meaningfully change the context for Largo. First, we added to the management team Jim Bannantine as Co-CEO of Largo. I have known Jim for over 15 years, when my private equity fund was one of the largest shareholders of Aura Minerals. Jim was appointed CEO of Aura back then, and I saw firsthand the positive contribution Jim had to that company, which was a great investment for my fund and all its shareholders. Moving back to Largo. On June 30th, Largo had $5.1 million in cash and $114.2 million in debt. Addressing our short-term maturities was therefore an immediate priority. On August 20th, we announced a binding agreement with Banco do Brasil, BTG Pactual, Bradesco, Santander, and Caixa Econômica Federal to restructure approximately $82.2 million of outstanding commercial debt.
Speaker #3: Let me now turn to what has happened since the quarter end, because this development has meaningfully changed the context for Largo. First, we added to the management team: Jim Ballantine, as co-CEO of Largo.
Speaker #3: I have known Jim for over 15 years. When my private equity fund was one of the largest shareholders of Aura Minerals, Jim was appointed CEO of Aura back then, and I saw firsthand the positive contribution Jim had to that company, which was a great investment for my fund and all its shareholders.
Speaker #3: Moving back to Largo, on June 30th, Largo had $5.1 million in cash and $114.2 million in debt. Addressing our short-term maturities was therefore an immediate priority.
Speaker #3: On August 20th, we announced a binding agreement with Banco do Brasil, BTG Pactual, Bradesco, Santander, and Caixa Econômica Federal to restructure approximately $82.2 million of outstanding commercial debt.
Speaker #3: The agreement extends the final maturity from September 2026 to March 2030, materially reducing near-term refinancing risk. Under the revised terms, principal payments benefit from a six-month grace period, followed by a 36-month quarterly principal amortization, while interest remains payable monthly.
Alberto Arias: The agreement extends the final maturity from September 2026 to March 2030, materially reducing near-term refinancing risk. Under the revised terms, principal payments benefit from a six-month grace period, followed by a 36-month quarterly principal amortization, while interest remains paid monthly. This is an important milestone for Largo and addresses a key near-term financial priority. The revised schedule improves our near-term liquidity profile and gives us greater runway to execute our operating plan, improve cash generation, and advance the value creation opportunities at Maracás Menchen and Largo in general. Jim?
Alberto Arias: The agreement extends the final maturity from September 2026 to March 2030, materially reducing near-term refinancing risk. Under the revised terms, principal payments benefit from a six-month grace period, followed by a 36-month quarterly principal amortization, while interest remains paid monthly. This is an important milestone for Largo and addresses a key near-term financial priority. The revised schedule improves our near-term liquidity profile and gives us greater runway to execute our operating plan, improve cash generation, and advance the value creation opportunities at Maracás Menchen and Largo in general. Jim?
Speaker #3: This is an important milestone for Largo and addresses a key near-term financial priority. The revised schedule improves our near-term liquidity profile and gives us greater runway to execute our operating plan, improve cash generation, and advance the value creation opportunities at Maracás Menchen and at Largo in general.
Speaker #3: Jim?
Speaker #4: Thanks, Alberto. And meanwhile, back in the United States, two developments have strengthened our commercial position. First, on July 7, Largo secured a $60.1 million delivery order from the U.S.
Jim Bannantine: Thanks, Alberto. Meanwhile, back in the United States, two developments have strengthened our commercial position. First, on 7 July, Largo secured a $60.1 million delivery order from the U.S. Defense Logistics Agency's Strategic Materials Department under our existing five-year contract with that agency. This order is a strong endorsement of our product quality and commercial capabilities, and it reinforces Largo's role in U.S. critical mineral supply chains. Second, we received greater clarity on U.S. trade policy and tariffs. Vanadium oxides and hydroxides under HTSUS classification 2825.30 were expressly exempt from the additional 25% tariff recently applied to certain Brazilian products. As a result, Brazilian origin V2O5 imported under this classification is not subject to the new Brazil-specific tariff, an important outcome for our valuable high-purity business. The exemption, unfortunately, does not extend to ferrovanadium exported directly from Brazil.
Jim Bannantine: Thanks, Alberto. Meanwhile, back in the United States, two developments have strengthened our commercial position. First, on 7 July, Largo secured a $60.1 million delivery order from the U.S. Defense Logistics Agency's Strategic Materials Department under our existing five-year contract with that agency. This order is a strong endorsement of our product quality and commercial capabilities, and it reinforces Largo's role in U.S. critical mineral supply chains. Second, we received greater clarity on U.S. trade policy and tariffs. Vanadium oxides and hydroxides under HTSUS classification 2825.30 were expressly exempt from the additional 25% tariff recently applied to certain Brazilian products. As a result, Brazilian origin V2O5 imported under this classification is not subject to the new Brazil-specific tariff, an important outcome for our valuable high-purity business. The exemption, unfortunately, does not extend to ferrovanadium exported directly from Brazil.
Speaker #4: Defense Logistics Agency's Strategic Materials Department. Under our existing five-year contract with that agency, this order is a strong endorsement of our product quality and commercial capabilities, and it reinforces Largo's role in the U.S.
Speaker #4: Critical mineral supply chains. Second, we received greater clarity on U.S. trade policy and tariffs. Vanadium oxides and hydroxides under HTSUS classification 2825.30 were expressly exempt from the additional 25 percent tariff recently applied to certain Brazilian products.
Speaker #4: As a result, Brazilian-origin V205 imported under this classification is not subject to the new Brazil-specific tariff—an important outcome for our valuable high-purity business.
Speaker #4: The exemption, unfortunately, does not extend to ferrovanadium exported directly from Brazil. However, our exposure is limited here because the majority of Largo's ferrovanadium sales to the U.S.
Jim Bannantine: However, our exposure is limited here because the majority of Largo's ferrovanadium sales to the U.S. are not supplied directly from Brazil. We are also moving quickly to unlock more value from the material we already mine at Maracás Menchen.
Jim Bannantine: However, our exposure is limited here because the majority of Largo's ferrovanadium sales to the U.S. are not supplied directly from Brazil. We are also moving quickly to unlock more value from the material we already mine at Maracás Menchen.
Speaker #4: are not supplied directly from Brazil. We are also moving quickly to unlock more value from the material we already mine at Maracás Menchen.
Speaker #3: Yes. Brazil's National Mining Agency approved our request to produce and sell copper, platinum group metals, nickel, and cobalt as byproducts from our existing operation. Following successful industrial-scale tests, we began full-scale copper and PGM concentrate production on August 7th using our existing ilmenite flotation infrastructure.
Alberto Arias: Yes. Brazil's National Mining Agency approved our request to produce and sell copper, platinum group metals, nickel, cobalt as by-products from our existing operation. Following successful industrial-scale tests, we began full-scale copper PGM concentrate production on 7 August using our existing ilmenite flotation infrastructure. What makes this opportunity especially compelling is its economics. Copper PGM concentrate is a by-product of vanadium production, so most of its costs are shared with our primary operation. Combined with the use of infrastructure already in place and the absence of material capital expenditure, this makes copper PGM a high-margin new revenue stream that can significantly improve resource utilization and unlock additional value for Maracás Menchen mine. To maximize this opportunity during the initial ramp-up, we have temporarily paused ilmenite concentrate production and are prioritizing copper PGM output through the existing flotation circuit.
Alberto Arias: Yes. Brazil's National Mining Agency approved our request to produce and sell copper, platinum group metals, nickel, cobalt as by-products from our existing operation. Following successful industrial-scale tests, we began full-scale copper PGM concentrate production on 7 August using our existing ilmenite flotation infrastructure. What makes this opportunity especially compelling is its economics. Copper PGM concentrate is a by-product of vanadium production, so most of its costs are shared with our primary operation. Combined with the use of infrastructure already in place and the absence of material capital expenditure, this makes copper PGM a high-margin new revenue stream that can significantly improve resource utilization and unlock additional value for Maracás Menchen mine. To maximize this opportunity during the initial ramp-up, we have temporarily paused ilmenite concentrate production and are prioritizing copper PGM output through the existing flotation circuit.
Speaker #3: What makes this opportunity especially compelling is its economics. Copper PGM concentrate is a byproduct of vanadium production, so most of its costs are shared with our primary operation.
Speaker #3: Combined with the use of infrastructure already in place, and the absence of material capital expenditure, this makes copper PGM a high-margin new revenue stream that can significantly improve resource utilization and unlock additional value for Maracás Menchen Mine.
Speaker #3: To maximize this opportunity, during the initial ramp-up, we have temporarily paused ilmenite concentrate production and are prioritizing copper-PGM output through the existing flotation circuit.
Speaker #3: At the same time, we're evaluating additional equipment that would allow us to recover ilmenite from copper flotation tailings and capture value from both product streams over time.
Alberto Arias: At the same time, we are evaluating additional equipment that would allow us to recover ilmenite from copper flotation tailings and capture value for both product streams over time.
Alberto Arias: At the same time, we are evaluating additional equipment that would allow us to recover ilmenite from copper flotation tailings and capture value for both product streams over time.
Speaker #4: Commercial discussions with potential smelters and traders are progressing for our first copper PGM shipment. As our operational and commercial opportunities expand, we have strengthened the leadership team as well, to help drive the next phase of our execution.
Jim Bannantine: Commercial discussions with potential smelters and traders are progressing for our first copper PGM shipment. As our operational and commercial opportunities expand, we have strengthened the leadership team as well to help drive the next phase of our execution. As we look ahead, our previously issued vanadium guidance remains unchanged, and we are also introducing initial guidance for copper PGM concentrate. We continue to expect full-year vanadium production of 10,500 to 12,000 tons of vanadium pentoxide equivalent and sales of 7,509 to 9,500 tons. We are also maintaining our adjusted cash operating cost guidance at this point of $350 to $450 per pound. For copper PGM concentrate, our initial guidance is 300 to 380 tons per month, with expected average grades of approximately 15% copper, 41 grams per ton of PGMs and gold, and 53 grams per ton of silver.
Jim Bannantine: Commercial discussions with potential smelters and traders are progressing for our first copper PGM shipment. As our operational and commercial opportunities expand, we have strengthened the leadership team as well to help drive the next phase of our execution. As we look ahead, our previously issued vanadium guidance remains unchanged, and we are also introducing initial guidance for copper PGM concentrate. We continue to expect full-year vanadium production of 10,500 to 12,000 tons of vanadium pentoxide equivalent and sales of 7,509 to 9,500 tons. We are also maintaining our adjusted cash operating cost guidance at this point of $350 to $450 per pound. For copper PGM concentrate, our initial guidance is 300 to 380 tons per month, with expected average grades of approximately 15% copper, 41 grams per ton of PGMs and gold, and 53 grams per ton of silver.
Speaker #4: As we look ahead, our previously issued vanadium guidance remains unchanged, and we are also introducing initial guidance for copper-PGM concentrate. We continue to expect full-year vanadium production of 10,500 to 12,000 tons.
Speaker #4: Vanadium pentoxide equivalent and sales of 7,500 to 9,500 tons. We're also maintaining our adjusted cash operating cost guidance at this point of $3.50 to $4.50 per pound.
Speaker #4: For copper PGM concentrate, our initial guidance is 300 to 380 tons per month, with expected average grades of approximately 15% copper, 41 grams per ton of PGMs and gold, and 53 grams per ton of silver.
Speaker #4: We expect output to become progressively more consistent within this range as we continue to optimize the operation.
Jim Bannantine: We expect output to become progressively more consistent within this range as we continue to optimize the operation.
Jim Bannantine: We expect output to become progressively more consistent within this range as we continue to optimize the operation.
Speaker #3: With that roadmap in place, our focus is on execution: sustaining the improvement at the Maracás Menchen operations, meeting our vanadium production and sales targets, fulfilling the DLA order, and ramping up copper and PGM production.
Alberto Arias: With that roadmap in place, our focus is on execution, sustaining the improvement at the Maracás Menchen operations, meeting our vanadium production and sales targets, fulfilling the DLA order, and ramping up copper PGM production. It also means converting operating stability and higher volumes into lower unit cost and a stronger cash generation. The debt restructuring gives us greater financial flexibility to advance these priorities and further strengthen Largo's financial position. Taken together, these developments give Largo stronger foundation and several clear avenues for growth. We are the world's largest primary vanadium producer with an established high-purity business and growing relevance to US critical mineral supply chains. Copper PGM broadens our opportunity by allowing us to capture additional value from the resource and infrastructure already in place at the Maracás Menchen operations.
Alberto Arias: With that roadmap in place, our focus is on execution, sustaining the improvement at the Maracás Menchen operations, meeting our vanadium production and sales targets, fulfilling the DLA order, and ramping up copper PGM production. It also means converting operating stability and higher volumes into lower unit cost and a stronger cash generation. The debt restructuring gives us greater financial flexibility to advance these priorities and further strengthen Largo's financial position. Taken together, these developments give Largo stronger foundation and several clear avenues for growth. We are the world's largest primary vanadium producer with an established high-purity business and growing relevance to US critical mineral supply chains. Copper PGM broadens our opportunity by allowing us to capture additional value from the resource and infrastructure already in place at the Maracás Menchen operations.
Speaker #3: It also means converting grading, operating stability, and higher volumes into lower unit costs and stronger cash generation. The debt restructuring gives us greater financial flexibility to advance these priorities and further strengthen Largo's financial position.
Speaker #3: Taken together, these developments give Largo a stronger foundation and several clear avenues for growth. We are the world’s largest primary vanadium producer, with an established high-purity business and growing relevance to the U.S.
Speaker #3: Critical mineral supply chains. Copper-PGM broadens our opportunity by allowing us to capture additional value from the resource and infrastructure already in place at the Maracas Menchen operations.
Alberto Arias: We still have work to do, particularly on cost and cash generation, but we believe Largo enters the H2 of the year with stronger operations, greater financial flexibility, and more opportunities to create value.
Alberto Arias: We still have work to do, particularly on cost and cash generation, but we believe Largo enters the H2 of the year with stronger operations, greater financial flexibility, and more opportunities to create value.
Speaker #3: We still have work to do, particularly on cost and cash generation, but we believe Largo enters the second half of the year with stronger operations, greater financial flexibility, and more opportunities to create value.
Speaker #4: Thank you again, Alberto. I am very pleased to have joined Largo, especially at such an important point for the company. The progress described in this call gives us a solid platform, but there is still a great deal of work to do.
Jim Bannantine: Thank you again, Alberto. I am very pleased to have joined Largo at such an important point for the company. The progress described in this call gives us a solid platform, but there is still a great deal of work to do. My focus is straightforward: build on the improving consistency at Maracás Menchen Mine, strengthen costs and cash performance, and help the team capture the opportunities in front of us. Largo has a strong operating asset, an established position in vanadium, and growing relevance to critical mineral supply chains in the United States. The DLA order and copper PGM production give us practical avenues to create value, while the debt restructuring gives us greater runway to pursue them. I look forward to working with Alberto, the board, and the entire Largo team to turn this momentum into consistent results. Thank you.
Jim Bannantine: Thank you again, Alberto. I am very pleased to have joined Largo at such an important point for the company. The progress described in this call gives us a solid platform, but there is still a great deal of work to do. My focus is straightforward: build on the improving consistency at Maracás Menchen Mine, strengthen costs and cash performance, and help the team capture the opportunities in front of us. Largo has a strong operating asset, an established position in vanadium, and growing relevance to critical mineral supply chains in the United States. The DLA order and copper PGM production give us practical avenues to create value, while the debt restructuring gives us greater runway to pursue them. I look forward to working with Alberto, the board, and the entire Largo team to turn this momentum into consistent results. Thank you.
Speaker #4: My focus is straightforward: build on the improving consistency at Maracás Menchen Mine, strengthen costs and cash performance, and help the team capture the opportunities in front of us.
Speaker #4: Largo has a strong operating asset and an established position in vanadium, and is growing in relevance to critical mineral supply chains in the United States. The DLA order and copper PGM production give us practical avenues to create value, while the debt restructuring gives us greater runway to pursue them.
Speaker #4: I look forward to working with Alberto, the Board, and the entire Largo team to turn this momentum into consistent results. Thank you.
Speaker #3: Thank you, Jim. And thank you to all of our employees, customers, and shareholders for their continued support. Operator, we are now ready to take questions.
Alberto Arias: Thank you, Jim. Thank you to all of our employees, customers, and shareholders for their continued support. Operator, we are now ready to take questions.
Alberto Arias: Thank you, Jim. Thank you to all of our employees, customers, and shareholders for their continued support. Operator, we are now ready to take questions.
Speaker #2: Thank you. We will now start Q&A. If you would like to ask a question, please press the Q&A button at the bottom of the screen.
Operator: Thank you. We'll now start Q&A. If you would like to ask a question, please press the Q&A button at the bottom of the screen. We already received our first question. How does the debt restructuring change Largo's priorities over the next 12 months?
Operator: Thank you. We'll now start Q&A. If you would like to ask a question, please press the Q&A button at the bottom of the screen. We already received our first question. How does the debt restructuring change Largo's priorities over the next 12 months?
Speaker #2: We have already received our first question: How does the debt restructuring change Largo's priorities over the next 12 months?
Speaker #5: Yes, no, thank you. Well, the restructuring gives us the runway that we need, but does not change our focus on financial discipline. You know, this extension of approximately $82 million of commercial bank debt, from September 2026—which is next month—to March 2030, has removed a significant near-term refinancing pressure.
Alberto Arias: Yes. No, thank you. Well, the restructuring gives us this runway that we need, but does not change our focus on financial discipline. This extension of approximately $82 million of commercial bank debt from September 2026, which is next month, to March 2030 have removed a significant near-term refinancing pressure. We also are going to be benefiting from this six-month principal grace period followed by the quarterly amortizations over 36 months. Our priorities continue to be on improvements of cash generations to fulfill the DLA contract, which is extremely important for us, and the ramp-up and improvements of the copper PGM production that we have been discussing in this conference call. As we have performance improve, we remain focused on reducing debt and in strengthening the balance sheet.
Alberto Arias: Yes. No, thank you. Well, the restructuring gives us this runway that we need, but does not change our focus on financial discipline. This extension of approximately $82 million of commercial bank debt from September 2026, which is next month, to March 2030 have removed a significant near-term refinancing pressure. We also are going to be benefiting from this six-month principal grace period followed by the quarterly amortizations over 36 months. Our priorities continue to be on improvements of cash generations to fulfill the DLA contract, which is extremely important for us, and the ramp-up and improvements of the copper PGM production that we have been discussing in this conference call. As we have performance improve, we remain focused on reducing debt and in strengthening the balance sheet.
Speaker #5: And we also are going to be benefiting from this six-month principal grace period followed by, you know, the quarterly amortizations over 36 months. Our priorities continue to be on improvements of cash flow generations to fulfill the DLA contract with this extremely important for us and the ramp up and improvements of the copper PGM production that we have been discussing in this conference call.
Speaker #5: As we have performance improve, we remain focused on reducing debt and strengthening the balance sheet.
Speaker #2: The next question comes from Tate Sullivan with Maxim Group. How might the U.S. Defense Logistics Agency manage the buying piece of vanadium from Largo?
Operator: The next question comes from Tate Sullivan with Maxim Group. How might the U.S. Defense Logistics Agency manage the buying piece of vanadium from Largo? Might the DLA make cash payments for forward supply delivery? Based on developments in the vanadium flow battery market, do you think that the value of our vanadium flow battery joint venture investments has increased?
Operator: The next question comes from Tate Sullivan with Maxim Group. How might the U.S. Defense Logistics Agency manage the buying piece of vanadium from Largo? Might the DLA make cash payments for forward supply delivery? Based on developments in the vanadium flow battery market, do you think that the value of our vanadium flow battery joint venture investments has increased?
Speaker #2: Might the DLA make cash payments for forward supply delivery? Based on developments in the vanadium flow battery market, do you think that the value of our vanadium flow battery joint venture investments has increased?
Speaker #4: What I can say is that the Defense Logistics Agency—as Alberto can talk about the batteries—the Defense Logistics Agency contract, remember, is a stockpiling objective by the U.S.
Jim Bannantine: Why don't I take the Defense Logistics Agency, and then Alberto Arias can talk about the batteries.
Jim Bannantine: Why don't I take the Defense Logistics Agency, and then Alberto Arias can talk about the batteries.
Alberto Arias: Perfect.
Alberto Arias: Perfect.
Jim Bannantine: The Defense Logistics Agency contract, remember, is a stockpiling objective by the US government of strategic materials. The initial delivery schedule is 20 tons per week, which is governed by the Defense Logistics Agency's logistics capability to accept the material in their warehouse. We will have at least 20 tons a week, but as the warehouse availability and loading capacity becomes available, we could accelerate that, and the DLA has told us that. The DLA, remember, pays us on a net 30 basis for whatever we deliver. If we accelerate deliveries, then we will accelerate cash receipts.
Jim Bannantine: The Defense Logistics Agency contract, remember, is a stockpiling objective by the US government of strategic materials. The initial delivery schedule is 20 tons per week, which is governed by the Defense Logistics Agency's logistics capability to accept the material in their warehouse. We will have at least 20 tons a week, but as the warehouse availability and loading capacity becomes available, we could accelerate that, and the DLA has told us that. The DLA, remember, pays us on a net 30 basis for whatever we deliver. If we accelerate deliveries, then we will accelerate cash receipts.
Speaker #4: Government of strategic materials. So, the initial delivery schedule is 20 tons per week, which is governed by the Defense Logistics Agency's logistics capability to accept the material in their warehouse.
Speaker #4: So we'll have at least 20 tons a week, but as the warehouse availability and loading capacity become available, we could accelerate that, and the DLA has told us that.
Speaker #4: The DLA, remember, pays us on a net 30 basis for whatever we deliver. So if we accelerate deliveries, then we'll accelerate cash receipts.
Speaker #5: Right. And the question on the vanadium flow battery—that's a very exciting part of the vanadium story in general. From a supply-demand perspective, what we have seen is that the biggest increase in demand is coming out of this industry, primarily in China.
Alberto Arias: Right. The question on the vanadium flow battery, that is a very exciting part of the vanadium story in general. From a supply-demand perspective, what we have seen is the biggest increase in demand coming out of this industry, primarily in China. I think China is demonstrating to the world that commercial flow batteries is a commercial reality for the vanadium industry. We are seeing it firsthand through our joint venture partnership in Storion, where we have a 37%. Our Partners are seeing significant increase in demand for vanadium coming on flow battery projects that are focused on data centers. That has become a key priority, and I think that is what is going to be a source of future value creation for Largo.
Alberto Arias: Right. The question on the vanadium flow battery, that is a very exciting part of the vanadium story in general. From a supply-demand perspective, what we have seen is the biggest increase in demand coming out of this industry, primarily in China. I think China is demonstrating to the world that commercial flow batteries is a commercial reality for the vanadium industry. We are seeing it firsthand through our joint venture partnership in Storion, where we have a 37%. Our Partners are seeing significant increase in demand for vanadium coming on flow battery projects that are focused on data centers. That has become a key priority, and I think that is what is going to be a source of future value creation for Largo.
Speaker #5: I think China is demonstrating to the world that commercial flow batteries are a commercial reality for the vanadium industry. And we're seeing it firsthand through our joint venture partnership in Astorion, where we have a 37.37% stake. Our partners are seeing a significant increase in demand for vanadium coming from flow battery projects that are focused on data centers.
Speaker #5: So that's become a key priority, and I think that's what's going to be a source of future value creation for Largo.
Speaker #2: One more time, if you would like to ask a question, please press the Q&A button at the bottom of the screen. Please hold while we pull for questions.
Operator: One more time. If you would like to ask a question, please press the Q&A button at the bottom of the screen. Please hold while we pull for questions. Our next question comes from Joel Jackson with BLD. Do you think that the final terms of the debt restructuring will require Largo to raise equity or impose other punitive terms for the current shareholders?
Operator: One more time. If you would like to ask a question, please press the Q&A button at the bottom of the screen. Please hold while we pull for questions. Our next question comes from Joel Jackson with BLD. Do you think that the final terms of the debt restructuring will require Largo to raise equity or impose other punitive terms for the current shareholders?
Speaker #2: Our next question comes from Jael Price with DLD. Do you think that the final terms of the debt restructuring will require Largo to raise equity or impose other punitive terms for the current shareholders?
Speaker #5: Right. No, thank you for the question, and that's probably driven by the debt extension we did last year. No, that's not been asked by the banks.
Alberto Arias: Right. No, thank you for the question, and probably that is driven by the last year debt extension we did. No, that has not been asked by the banks. Obviously, the details of the final documentation are going to come out probably in the middle of September. But we are very grateful for the Brazilian banks. They have been very supportive. They have been very commercial. What we have done in yesterday's press release is communicate to the market the binding terms. I think that reflects what the agreement is, and people will have to wait for a few weeks for the final documentation. But I think the essence of the transaction has been announced yesterday.
Alberto Arias: Right. No, thank you for the question, and probably that is driven by the last year debt extension we did. No, that has not been asked by the banks. Obviously, the details of the final documentation are going to come out probably in the middle of September. But we are very grateful for the Brazilian banks. They have been very supportive. They have been very commercial. What we have done in yesterday's press release is communicate to the market the binding terms. I think that reflects what the agreement is, and people will have to wait for a few weeks for the final documentation. But I think the essence of the transaction has been announced yesterday.
Speaker #5: And obviously, the details of the final documentation are probably going to come out in the middle of September. But we are very, very grateful for the Brazilian banks; they've been very supportive, they've been very commercial.
Speaker #5: So, you know, what we have done in yesterday's press release is communicate to the market the binding terms, and I think that reflects what the agreement is. People will have to wait for a few weeks for the final documentation.
Speaker #5: But I think the essence of the transaction was announced yesterday.
Operator: One more time. If you would like to ask a question, please press the Q&A button at the bottom of the screen. Please hold while we pull for questions. Our next question comes from an individual investor, Hen Harbour. Could you please give some comment regarding the vanadium market in general? Is the market still oversupplied from China and Russia? If it is oversupplied, when do you think the market will balance? Thank you.
Operator: One more time. If you would like to ask a question, please press the Q&A button at the bottom of the screen. Please hold while we pull for questions. Our next question comes from an individual investor, Hen Harbour. Could you please give some comment regarding the vanadium market in general? Is the market still oversupplied from China and Russia? If it is oversupplied, when do you think the market will balance? Thank you.
Speaker #2: One more time, if you would like to ask a question, please press the Q&A button at the bottom of the screen. Please hold while we pull for questions.
Speaker #2: Our next question comes from individual investor Han Harbor. Could you please give some comments in general? Is the market still oversupplied from China and Russia?
Speaker #2: If it is oversupplied, when do you think the market will balance? Thank you.
Alberto Arias: I can take that question. In terms of supply-demand, it is something that obviously is critically important for Largo and its business. What we have seen the previous couple of years has been an oversupply market. It is mainly driven by the slowdown of the construction markets in China. That is the biggest consumer of vanadium, and rebar is the main use for vanadium globally. However, I believe that we are seeing positive signs emerging. First, we started to see a significant increase in prices in the United States, mainly driven by tariffs and protectionism in the United States. That helped some of the price realizations of Largo. We are starting to see, as I mentioned before, that vanadium in Asia, particularly in China, have been surprising a lot of observers in the vanadium industry. We are seeing that trend will probably continue and extend itself into the West.
Alberto Arias: I can take that question. In terms of supply-demand, it is something that obviously is critically important for Largo and its business. What we have seen the previous couple of years has been an oversupply market. It is mainly driven by the slowdown of the construction markets in China. That is the biggest consumer of vanadium, and rebar is the main use for vanadium globally. However, I believe that we are seeing positive signs emerging. First, we started to see a significant increase in prices in the United States, mainly driven by tariffs and protectionism in the United States. That helped some of the price realizations of Largo. We are starting to see, as I mentioned before, that vanadium in Asia, particularly in China, have been surprising a lot of observers in the vanadium industry. We are seeing that trend will probably continue and extend itself into the West.
Speaker #5: I can take that question in terms of supply and demand. It's something that obviously is critically important for Largo and its business. What we have seen lately, over the previous couple of years, has been an oversupplied market, mainly driven by the slowdown of the construction markets in China.
Speaker #5: That is the biggest consumer of vanadium, and rebar is the main use for vanadium globally. However, I believe that we're seeing positive signs emerging. First, we started to see a significant increase in prices in the United States, mainly driven by tariffs and protectionism in the United States.
Speaker #5: That helped some of the price realizations for Largo. But we are starting to see, as I mentioned before, that vanadium prices in Asia, particularly in China, have been surprising a lot of observers in the vanadium industry.
Speaker #5: You know, we are seeing that trend will probably continue and extend itself into the West. There have been very significant announcements of vanadium flow batteries in Europe recently.
Alberto Arias: There has been very significant announcements of vanadium flow batteries in Europe recently. I think, as I mentioned with our joint venture on Storion Energy, that we are hopeful to see much better demand from vanadium coming on the vanadium flow battery industry in the United States.
Alberto Arias: There has been very significant announcements of vanadium flow batteries in Europe recently. I think, as I mentioned with our joint venture on Storion Energy, that we are hopeful to see much better demand from vanadium coming on the vanadium flow battery industry in the United States.
Speaker #5: But I think, as I mentioned with our joint venture on Astorion, that we are hopeful to see much better demand for vanadium coming from the vanadium flow battery industry in the United States.
Speaker #2: Okay, we already see the next question: What are the main actions underway to improve unit costs and cash generation?
Operator: Okay, we are to receive the next question. What are the main actions underway to improve intel costs and cash generation?
Operator: Okay, we are to receive the next question. What are the main actions underway to improve intel costs and cash generation?
Jim Bannantine: Why don't I take that one? As everybody knows, the vanadium market that Alberto Arias just discussed is challenging. We are adjusting our operating objectives and methodology to optimize our cost structure against profitable production levels. Not all vanadium sales are profitable in this market. We've got to select the profitable ones and then adjust production accordingly. Then we optimize our variable and fixed costs against that production level, which is how we're going forward. The first-order objective is profitability as opposed to just maximize production. Thank you.
Jim Bannantine: Why don't I take that one? As everybody knows, the vanadium market that Alberto Arias just discussed is challenging. We are adjusting our operating objectives and methodology to optimize our cost structure against profitable production levels. Not all vanadium sales are profitable in this market. We've got to select the profitable ones and then adjust production accordingly. Then we optimize our variable and fixed costs against that production level, which is how we're going forward. The first-order objective is profitability as opposed to just maximize production. Thank you.
Speaker #4: Why don't I take that one? So, as everybody knows, the vanadium market that Alberto just discussed is challenging. We are adjusting our operating objectives and methodology to optimize our cost structure against profitable production levels.
Speaker #4: So not all vanadium sales are profitable in this market. We’ve got to select the profitable ones and then adjust production accordingly. Then we optimize our variable and fixed costs against that production level, which is how we’re going forward.
Speaker #4: The first-order objective is profitability, as opposed to just maximizing production. Thank you.
Speaker #2: One more time, if you would like to ask a question, please press the Q&A button at the bottom of the screen. Please hold while we pull for questions.
Operator: One more time. If you would like to ask a question, please press the Q&A button at the bottom of the screen. Please hold while we queue for questions. Our next question comes from Kevin Chia. Does the company have a smelter or trading partners set up for purchasing the copper concentrate in this use? Do they have estimates for sale price per ton?
Operator: One more time. If you would like to ask a question, please press the Q&A button at the bottom of the screen. Please hold while we queue for questions. Our next question comes from Kevin Chia. Does the company have a smelter or trading partners set up for purchasing the copper concentrate in this use? Do they have estimates for sale price per ton?
Speaker #2: Our next question comes from Kevin Shea. Does the company have a smelter, or are trading partners set up for purchasing the copper concentrate? If so, do they have an estimate for sale price per ton?
Jim Bannantine: I'll take that one. Yes, there's a great demand for this copper concentrate. Not only is copper in high demand, as everyone knows, but the PGM precious metal grades in this concentrate are very good. We have a strong demand from both the smelter and the trading community for the product. Multiple interested buyers. You can see the grades, the approximate grades in our press release for the copper and PGMs, but it's a very good price per ton.
Jim Bannantine: I'll take that one. Yes, there's a great demand for this copper concentrate. Not only is copper in high demand, as everyone knows, but the PGM precious metal grades in this concentrate are very good. We have a strong demand from both the smelter and the trading community for the product. Multiple interested buyers. You can see the grades, the approximate grades in our press release for the copper and PGMs, but it's a very good price per ton.
Speaker #4: I'll take that one. Yes, there's a great demand for this copper concentrate. Not only is copper in high demand, as everyone knows, but the PGM — precious metal — grades in this concentrate are very good.
Speaker #4: So we have a strong demand from both the smelter and the trading community for the product. Multiple interested buyers—you can see the approximate grades in our press release for the copper and PGMs—but it's a very good price per ton.
Speaker #2: The next question comes from Leo Coheya with BTG Pactual. Hi, thank you. Any updates on the potential tungsten sale?
Operator: The next question comes from Leo Correa with BTG Pactual. Hi. Thank you. Any updates on the potential tungsten sale?
Operator: The next question comes from Leo Correa with BTG Pactual. Hi. Thank you. Any updates on the potential tungsten sale?
Speaker #5: Right. So we, maybe over a month ago, put out a press release saying that we are looking at strategic options for our tungsten assets.
Alberto Arias: Right. So we, maybe over a month ago, put a press release saying that we are looking at strategic options for our tungsten assets. That was mainly driven by what we have seen in the tungsten market, a significant increase in prices. China had restricted exports of tungsten, and prices really have gone up 10 times since we last operated Currais Novos, which was one of our operations in Brazil. There's been some, as we mentioned on that press release, inbounds of expressions of interest. We are very engaged with talking with the potential interested parties, and we are going to optimize the value for Largo shareholders as a consequence of this interest for those assets. Just as a highlight, there are two of them. We have Northern Dancer in the Yukon territory of Canada. It is one of the world's largest undeveloped tungsten deposits.
Alberto Arias: Right. So we, maybe over a month ago, put a press release saying that we are looking at strategic options for our tungsten assets. That was mainly driven by what we have seen in the tungsten market, a significant increase in prices. China had restricted exports of tungsten, and prices really have gone up 10 times since we last operated Currais Novos, which was one of our operations in Brazil. There's been some, as we mentioned on that press release, inbounds of expressions of interest. We are very engaged with talking with the potential interested parties, and we are going to optimize the value for Largo shareholders as a consequence of this interest for those assets. Just as a highlight, there are two of them. We have Northern Dancer in the Yukon territory of Canada. It is one of the world's largest undeveloped tungsten deposits.
Speaker #5: That was mainly driven by what we have seen in the tungsten market. There has been a significant increase in prices. China had restricted exports of tungsten, and prices have really gone up ten times.
Speaker #5: Since we last operated Creshnovels, which was one of our operations in Brazil, there's been some, as we mentioned on that press release, inbounds of expressions of interest.
Speaker #5: So, we are very engaged in talking with the potential interested parties, and we are going to optimize the value for Largo shareholders as a consequence of this interest for those assets.
Speaker #5: Just as a highlight, there are two of them. We have Northern Dancer in the Yukon Territory of Canada. It is one of the world's largest undeveloped tungsten deposits.
Alberto Arias: There's a lot of technical reports that were published back in 2011. Then we have the Currais Novos, which was an operation of tailings reprocessing that Largo operated in 2011 and 2012. We basically put it in care of maintenance because the company wanted to focus its attention on the development of the Maracás Vanadium Mine. But tungsten prices have gone up tenfold since then. I think it's a very interesting opportunity for a number of companies and investors. But there's nothing really to report exactly about a price or a timing, but we're diligently working on that process.
Alberto Arias: There's a lot of technical reports that were published back in 2011. Then we have the Currais Novos, which was an operation of tailings reprocessing that Largo operated in 2011 and 2012. We basically put it in care of maintenance because the company wanted to focus its attention on the development of the Maracás Vanadium Mine. But tungsten prices have gone up tenfold since then. I think it's a very interesting opportunity for a number of companies and investors. But there's nothing really to report exactly about a price or a timing, but we're diligently working on that process.
Speaker #5: There are a lot of technical reports that were published back in 2011. And then we have the Coudrais novels, which was an operation of tailings reprocessing that Largo operated in 2011 and 2012.
Speaker #5: And we basically put it in care and maintenance because the company wanted to focus its attention on the development of the Maracás vanadium mine.
Speaker #5: But you know, tungsten prices have gone up tenfold since then. So, I think it's a very interesting opportunity for a number of companies and investors.
Speaker #5: But there's nothing really to report exactly about a price or timing, but we're diligently working on that process.
Speaker #2: Next question comes from Doug Adams. What avenues and margin expectations are there for the new PGM program?
Operator: Next question comes from Doug Adams. What avenues and margin expectations for the new PGM program?
Operator: Next question comes from Doug Adams. What avenues and margin expectations for the new PGM program?
Speaker #4: I'll take that one. Just referencing our press releases, you can see what the copper and PGM grades are for the concentrate that we're selling.
Jim Bannantine: I'll take that one. Just referencing our press releases, you can see what the copper and PGM grades are for the concentrate that we're selling. You can also see the guidance in the volume of the tonnage we expect to sell. As far as margin goes, as Alberto Arias and I both referred to, the copper concentrate is a byproduct, so it doesn't have much additional cost to our existing vanadium production. So it's a very high margin as well. Thank you.
Jim Bannantine: I'll take that one. Just referencing our press releases, you can see what the copper and PGM grades are for the concentrate that we're selling. You can also see the guidance in the volume of the tonnage we expect to sell. As far as margin goes, as Alberto Arias and I both referred to, the copper concentrate is a byproduct, so it doesn't have much additional cost to our existing vanadium production. So it's a very high margin as well. Thank you.
Speaker #4: You can also see the guidance in the volume of the tonnage we're going to expect to sell. As far as margin goes, as Alberto and I both referred to, the copper concentrate is a byproduct.
Speaker #4: So it doesn't have much additional cost to our existing vanadium production, so it's a very high margin as well. Thank you.
Speaker #2: Next question comes from Han Harrow. Again, will Europe do a similar thing to what the United States did with the vanadium critical metal stockpile?
Operator: Next question comes from David Herro again. Will Europe do a similar thing like what the United States did with vanadium, critical metal stockpile?
Operator: Next question comes from David Herro again. Will Europe do a similar thing like what the United States did with vanadium, critical metal stockpile?
Speaker #5: Well, just to put it into context, vanadium is becoming a critical metal and critical material in a lot of jurisdictions. We have seen a lot of interest in the stockpiling of vanadium, given that there have been recent reports in China that they have changed the category of vanadium to a strategic metal that is subject to stockpiling and potential export controls.
Alberto Arias: Well, just to put into context that vanadium is becoming a critical metal and critical material in a lot of jurisdictions. We have seen a lot of interest of this stockpiling of vanadium, given that there has been recent reports in China that they have changed their category of vanadium to a strategic metal that is subject to stockpiling and potential export controls. That's raised a lot of flags of warning that, vanadium is very important to be stockpiled. In the report that is available in the Vanitec website for everyone to read, it clearly says that China currently produces around 72% of the vanadium supply. I should remind people that Russia is another important producer, around 15%, but both countries really dominate the vanadium market. Therefore, the need of the DLA and other jurisdictions to come up with these type of strategies.
Alberto Arias: Well, just to put into context that vanadium is becoming a critical metal and critical material in a lot of jurisdictions. We have seen a lot of interest of this stockpiling of vanadium, given that there has been recent reports in China that they have changed their category of vanadium to a strategic metal that is subject to stockpiling and potential export controls. That's raised a lot of flags of warning that, vanadium is very important to be stockpiled. In the report that is available in the Vanitec website for everyone to read, it clearly says that China currently produces around 72% of the vanadium supply. I should remind people that Russia is another important producer, around 15%, but both countries really dominate the vanadium market. Therefore, the need of the DLA and other jurisdictions to come up with these type of strategies.
Speaker #5: So, that raised a lot of warning flags that, you know, vanadium is very important to be stockpiled, according to the report that is available on the Vanitech website.
Speaker #5: For everyone to read. It clearly sees that China currently produces around 72% of the vanadium supply. And I should remind people that you know Russia is another important producer around 15%, but both countries really dominate the vanadium market.
Speaker #5: So, therefore, the need of the DLA and other jurisdictions to come up with, you know, these types of strategies. So, if there is a need for stockpiling, the endorsement that we got from DLA was very important. You know, being part of the supply chain for the Department of Defense and the Defense Logistics Agency has been very important for Largo as a company.
Alberto Arias: If there is need for stockpiling, the endorsement that we got from DLA was very important. Being part of the supply chain for the Department of Defense and the Defense Logistics Agency has been very important for Largo as a company, and I think it actually paves the way to be participants of any other stockpiling in other parts of the world.
Alberto Arias: If there is need for stockpiling, the endorsement that we got from DLA was very important. Being part of the supply chain for the Department of Defense and the Defense Logistics Agency has been very important for Largo as a company, and I think it actually paves the way to be participants of any other stockpiling in other parts of the world.
Speaker #5: And I think it actually paves the way to be participants in any other stockpiling in other parts of the world.
Speaker #4: We've actually seen the EU, the UK, Australia, and Canada—basically kind of the free world—following these initiatives.
Jim Bannantine: We've actually seen the EU, the UK, Australia, Canada, basically kind of the free world, following these initiatives.
Jim Bannantine: We've actually seen the EU, the UK, Australia, Canada, basically kind of the free world, following these initiatives.
Operator: More time. If you would like to ask a question, please press the Q&A button at the bottom of the screen. Please hold while we pull for questions. This concludes the questions and answer section. At this time, I would like to turn the floor back to Arias for closing remarks.
Operator: More time. If you would like to ask a question, please press the Q&A button at the bottom of the screen. Please hold while we pull for questions. This concludes the questions and answer section. At this time, I would like to turn the floor back to Arias for closing remarks.
Speaker #2: Our time is filled. If you'd like to ask a question, please press the Q&A button at the bottom of the screen. Please hold while we pull for questions.
Speaker #2: This concludes the question and answer section. At this time, I would like to turn the floor back to Arias for closing remarks.
Speaker #5: Thank you very much for attending this conference call. We appreciate your support. I know it's been a very tough time for all investors and stakeholders to be in this depressed environment for vanadium.
Alberto Arias: Well, thank you very much for attending this conference call. We appreciate your support. I know it has been a very tough time for all investors and stakeholders to be in this depressed environment for vanadium. But from the Largo perspective and the team behind Largo, we are all working diligently for the benefit of all the stakeholders, for the communities that work with us, with our suppliers, our customers. We think that these signs that we have recently in terms of the support of the Brazilian commercial banks is showing that we are here together to make Largo a success, and we are very committed on that. Thank you very much.
Alberto Arias: Well, thank you very much for attending this conference call. We appreciate your support. I know it has been a very tough time for all investors and stakeholders to be in this depressed environment for vanadium. But from the Largo perspective and the team behind Largo, we are all working diligently for the benefit of all the stakeholders, for the communities that work with us, with our suppliers, our customers. We think that these signs that we have recently in terms of the support of the Brazilian commercial banks is showing that we are here together to make Largo a success, and we are very committed on that. Thank you very much.
Speaker #5: But from the Largo perspective, and the team behind Largo, we're all working diligently for the benefit of all the stakeholders—for the communities that work with us, with our suppliers, our customers.
Speaker #5: So we think that, you know, these signs that we have recently in terms of the support of the Brazilian commercial banks are showing that we're here together to make Largo a success, and we're very committed to that.
Speaker #5: Thank you very much.
Speaker #2: Thank you. This does conclude today's presentation. You may disconnect now and have a nice day.
Operator: Thank you. This does conclude today's presentation. You may disconnect now and have a nice day.
Operator: Thank you. This does conclude today's presentation. You may disconnect now and have a nice day.
Operator: Goodbye
Operator: Goodbye
