Largo posts 68% revenue jump on vanadium prices and volumes

Largo, a vanadium producer based in Canada, experienced a substantial 68.5% increase in revenue for the second quarter of the year, reaching $44 million. This significant growth can be attributed to rising vanadium prices and higher sales volumes. However, the company also reported a wider net loss due to non-cash write-downs and increased input costs.

The company attributed its improved financial performance to favorable market conditions for vanadium and higher benchmark prices. These factors led to an increase in sales volumes and production at the company's Maracás Menchen Mine. The enhanced vanadium output and sales were a direct result of improved ore availability and operational stability at the mine.

Despite the revenue gains, higher raw material input costs, such as diesel fuel, explosives, and sulfur-derived reagents, partially offset the positive impact on Largo's earnings. In an effort to diversify its revenue streams and mitigate cost pressures, the company began producing copper-PGM concentrate during the quarter.

Largo has maintained its guidance for vanadium production for 2026, projecting a range of 10,500 to 12,000 tonnes of V₂O₅ equivalent. The company also expects to sell 7,500 to 9,500 tonnes of V₂O₅ equivalent during the same period and has adjusted its cash costs to between $3.50 and $4.50 per pound. Additionally, the company has set initial production guidance for copper-PGM concentrate at 300 to 380 tonnes per month.