All greenback quantities expressed are in 1000’s of U.S. {dollars} except in any other case indicated.

Q1 2024 and Other Highlights

• Revenues of $42.2 million in Q1 2024 vs. 57.4 million in Q1 2023; Lower revenues pushed by a big lower in vanadium costs; Revenues per pound soldi of $6.91 in Q1 2024 vs. $9.14 in Q1 2023
• Operating prices of $49.7 million in Q1 2024 vs. $45.9 million in Q1 2023
• Cash working prices excluding royalties per pound6 of $6.12 per lb V2O5 equal bought in Q1 2024 vs. $5.15 per lb in Q1 2023; Higher working prices are largely related to the prolonged upkeep interval in Q1 2024 and included a write-down of produced vanadium merchandise of $4.5 million
• Net lack of $13.0 million in Q1 2024, which included $4.4 million in non-recurring objects vs. a web lack of $1.2 million in Q1 2023, which included $0.1 million in non-recurring objects; Basic loss per share of $0.20 in Q1 2024 vs. primary loss per share of $0.02 in Q1 2023
• Cash stability of $45.7 million, web working capitalii surplus of $70.8 million and debt of $75.0 million exiting Q1 2024
• V2O5 equal gross sales of two,765 tonnes (inclusive of 156 tonnes of bought materials) in Q1 2024 vs. 2,849 equal tonnes bought (inclusive of 245 tonnes of bought materials) in Q1 2023
• V2O5 manufacturing of 1,729 tonnes (3.8 million lbsiii) in Q1 2024 vs. 2,111 tonnes produced in Q1 2023; Lower manufacturing in Q1 2024 was anticipated and is basically attributable to the completion of the Company’s deliberate kiln refractory substitute and different plant upkeep actions in the course of the quarter
• The Company produced 9,563 tonnes of ilmenite focus in Q1 2024, a rise of seven% from This fall 2023, and bought 513 tonnes of ilmenite focus in Q1 2024; Ilmenite gross sales had been under Q1 2024 steerage attributable to operational and administrative delays
• Q1 2024 outcomes convention name: Thursday, May sixteenth at 10:00 a.m. ET

Vanadium Market Updateiv

• Due to opposed situations within the Chinese and European metal industries, spot demand for Q1 2024 continued to be weak; nonetheless, sturdy aerospace demand continued; Future quarters are anticipated to witness a rise in demand for vitality storage, particularly in China
• The common benchmark value per pound of V2O5 in Europe was $6.44 in Q1 2024, a 38% lower from the typical of $10.39 seen in Q1 2023. The common benchmark value per kg of ferrovanadium in Europe was $27.96 in Q1 2024, a 30% lower from the typical of $39.46 seen in Q1 2023
• The common benchmark value per pound of V2O5 in Europe as of May 10, 2024 was $5.87

TORONTO–(BUSINESS WIRE)–Largo Inc. (“Largo” or the “Company“) (TSX: LGO) (NASDAQ: LGO) in the present day launched monetary outcomes for the three months ended March 31, 2024. The Company reported quarterly vanadium pentoxide (V2O5) equal gross sales of two,765 tonnes at a money working price excluding royalties per pound6 bought of $6.12.

Daniel Tellechea, Interim CEO and Director of Largo, acknowledged: Having navigated challenges within the first quarter, similar to an prolonged upkeep interval which led to elevated prices, and a pointy decline in vanadium costs, our focus stays on restoring profitability at Largo. We continued to appreciate price financial savings at our clear vitality division this quarter on account of initiating our strategic evaluation course of, and negotiations with Stryten Energy LLC stay ongoing. While we anticipate elevated prices within the first half of the yr, we anticipate enhancements within the second half as the complete results of our beforehand introduced productiveness initiatives and value discount measures materialize at our Maracás Menchen Mine.

Financial and Operating Results “ Highlights

Financial figures expressed in 1000’s of U.S. {dollars}, besides as in any other case acknowledged	Three months ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues	42,187	57,421
Operating prices	(49,707)	(45,931)
Net earnings (loss)	(13,006)	(1,207)
Basic earnings (loss) per share	(0.20)	(0.02)
Adjusted EBITDAv	(3,626)	9,592
Cash (used) offered earlier than working capital objects	(7,268)	8,150
Cash working prices excl. royaltiesvi ($/lb)	6.12	5.15
Cash	45,656	42,714
Debt	75,000	75,000
Total mined “ dry foundation (tonnes)	3,243,492	3,523,656
Total ore mined (tonnes)	604,231	341,967
Effective gradevii of ore milled (%)	0.82	1.08
V2O5 equal produced (tonnes)	1,729	2,111
Ilmenite focus produced (tonnes)	9,563	Nil

Q1 2024 Notes

• The Company recorded a web lack of $13.0 million in Q1 2024 in contrast with a web lack of $1.2 million in Q1 2023, primarily attributable to a 27% lower in revenues and an 8% enhance in working prices, which had been partially offset by a 24% lower in skilled, consulting and administration charges and a 73% lower in expertise start-up prices.
• In Q1 2024, the Company’s direct mine and manufacturing prices of $29.9 million elevated by 5% over Q1 2023, primarily because of the impression of the scheduled plant shutdown in Q1 2024 and the related decrease world recoveries and better prices because the plant resumed operations. During the shutdown, the kiln refractory was changed, and annual upkeep actions had been carried out within the crushing, milling, ilmenite, leaching and chemical sections of the plant.
• Cash working prices excluding royalties6 of $6.12 per lb bought in Q1 2024 elevated by 19% over Q1 2023 ($5.15 per lb) because of the causes famous above and included a write-down of produced vanadium merchandise of $4.5 million. Additionally, elevated portions of ore mined and decrease grades additionally impacted the monetary efficiency in the course of the quarter. The Company is actively working to realize operational stability and working norms as a way to higher handle its unit prices and has applied quite a few initiatives with the purpose of lowering manufacturing prices and bettering productiveness. These embrace lowering haulage distances, lowering the variety of contractors and a complete evaluation of all contracts.
• Professional, consulting and administration charges in Q1 2024 decreased from Q1 2023 by 24% ($1.3 million), primarily attributable to decreased exercise and headcount at Largo Clean Energy Corp. (LCE) on account of the initiation of its strategic evaluation course of. Technology start-up prices in Q1 2024 additionally decreased from Q1 2023 by 73% ($2.0 million), which is primarily attributable to a lower in actions at LCE in Q1 2024 because the set up of its battery mission nears conclusion.
• Subsequent to Q1 2024, manufacturing and gross sales in had been 815 tonnes and 757 tonnes of V2O5 equal, respectively, in April 2024, with 2,500 tonnes of ilmenite focus being produced throughout this era and eight,363 dry tonnes of ilmenite being bought.
• In May 2024, the Company secured a working capital debt facility with a financial institution in Brazil for a complete restrict of $8.0 million. Drawdowns on the ability are repayable in 90 days along with accrued curiosity at a fee of 8.25% p.a., with renewals topic to approval by the financial institution.
• On May 15, 2024, the Company signed a binding time period sheet for as much as $10.0 million in stock financing. Under the phrases of this facility, which shall have a minimal length of 12 months, the Company will use its vanadium completed merchandise stock to safe drawdowns of as much as $10.0 million for a most interval of 90 days. Amounts repaid will embrace a fee price of 1%, curiosity at an anticipated fee of the U.S. Secured Overnight Financing Rate (“SOFR”) plus 2.5% and different direct prices.

The data offered inside this launch needs to be learn along with Largo’s unaudited condensed interim consolidated monetary statements for the three months ended March 31, 2024 and 2023 and its administration’s dialogue and evaluation for the three months ended March 31, 2024 which can be found on our web site at www.largoinc.com or on the Company’s respective profiles at www.sedarplus.com and www.sec.gov.

About Largo

Largo is a globally acknowledged vanadium firm identified for its high-quality VPURE™ and VPURE+™ merchandise, sourced from its Maracás Menchen Mine in Brazil. The Company is at the moment centered on ramping up manufacturing of its ilmenite focus plant and is endeavor a strategic analysis of its U.S.-based clear vitality enterprise, together with its superior VCHARGE vanadium battery expertise to maximise the worth of the group. Largo’s strategic marketing strategy facilities on sustaining its place as a number one vanadium provider with a progress technique to assist a low-carbon future.

Largo’s frequent shares commerce on the Nasdaq Stock Market and on the Toronto Stock Exchange below the image “LGO”. For extra data, please go to www.largoinc.com.

Cautionary Statement Regarding Forward-looking Information:

This press launch comprises forward-looking data and forward-looking statements inside the that means of relevant Canadian and United States securities laws. Forwardtrying data on this press launch consists of, however isn’t restricted to, statements with respect to the timing and quantity of estimated future manufacturing and gross sales; the long run value of commodities; prices of future actions and operations, together with, with out limitation, the impact of inflation and trade charges; the impact of unexpected tools upkeep or repairs on manufacturing; timing of ilmenite manufacturing; the power to supply excessive purity V2O5 and V2O3 in accordance with buyer specs; the extent of capital and working expenditures; the power of the Company to make enhancements on its present short-term mine plan; the impression of worldwide delays and associated value will increase on the Company’s world provide chain and future gross sales of vanadium merchandise. Forwardtrying data on this press launch additionally consists of, however isn’t restricted to, statements with respect to our means to construct, finance and efficiently function a VRFB enterprise, the projected timing and value of the completion of the EGPE mission; our means to guard and develop our expertise, our means to keep up our IP, the competitiveness of our product in an evolving market, our means to market, promote and ship our VCHARGE batteries on specification and at a aggressive value, our means to efficiently deploy our VCHARGE batteries in overseas jurisdictions; our means to barter and enter right into a three way partnership with Ansaldo Green Tech on phrases passable to the Company and the success of such three way partnership; the receipt of needed governmental permits and approvals on a well timed foundation, our means to safe the required sources to construct and deploy our VCHARGE batteries, and the adoption of VRFB expertise typically out there.

The following are among the assumptions upon which forward-looking data relies: that normal enterprise and financial situations won’t change in a fabric opposed method; demand for, and secure or bettering value of V2O5 and different vanadium commodities; receipt of regulatory and governmental approvals, permits and renewals in a well timed method; that the Company won’t expertise any materials accident, labour dispute or failure of plant or tools or different materials disruption within the Company’s operations on the Maracás Menchen Mine or regarding Largo Clean Energy, specifically in respect of the set up and commissioning of the EGPE mission; the provision of financing for operations and improvement; the provision of funding for future capital expenditures; the power to exchange present funding on phrases passable to the Company; the power to mitigate the impression of heavy rainfall; the Company’s means to acquire tools, companies and working provides in enough portions and on a well timed foundation; that the estimates of the sources and reserves on the Maracás Menchen Mine are inside cheap bounds of accuracy (together with with respect to dimension, grade and restoration and the operational and value assumptions on which such estimates are primarily based); the accuracy of the Company’s mine plan on the Maracás Menchen Mine, the competitiveness of the Company’s VRFB expertise; the power to acquire funding by way of authorities grants and awards for the Green Energy sector, the accuracy of price estimates and assumptions on future variations of VCHARGE battery system design, that the Company’s present plans for ilmenite and VRFBs might be achieved; the Company’s “two-pillar” enterprise technique will probably be profitable; the Company’s gross sales and buying and selling preparations won’t be affected by the evolving sanctions in opposition to Russia; and the Company’s means to draw and retain expert personnel and administrators; the power of administration to execute strategic objectives.

Forward-looking statements might be recognized by way of forward-looking terminology similar to “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such phrases and phrases or statements that sure actions, occasions or outcomes “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. All data contained on this information launch, apart from statements of present and historic reality, is ahead trying data. Forward-looking statements are topic to identified and unknown dangers, uncertainties and different components that will trigger the precise outcomes, degree of exercise, efficiency or achievements of Largo or Largo Clean Energy to be materially completely different from these expressed or implied by such forward-looking statements, together with however not restricted to these dangers described within the annual data type of Largo and in its public paperwork filed on www.sedar.com and out there on www.sec.gov infrequently. Forward-looking statements are primarily based on the opinions and estimates of administration as of the date such statements are made. Although administration of Largo has tried to determine necessary components that might trigger precise outcomes to vary materially from these contained in forward-looking statements, there could also be different components that trigger outcomes to not be as anticipated, estimated or supposed. There might be no assurance that such statements will show to be correct, as precise outcomes and future occasions might differ materially from these anticipated in such statements. Accordingly, readers shouldn’t place undue reliance on forward-looking statements. Largo doesn’t undertake to replace any forward-looking statements, besides in accordance with relevant securities legal guidelines. Readers also needs to evaluation the dangers and uncertainties sections of Largo’s annual and interim MD&As which additionally apply.

Trademarks are owned by Largo Inc.

Non-GAAP Measures

The Company makes use of sure non-GAAP measures in its press launch, that are described within the following part. Non-GAAP monetary measures and non-GAAP ratios aren’t standardized monetary measures below IFRS, the Company’s GAAP, and won’t be akin to comparable monetary measures disclosed by different issuers. These measures are supposed to offer extra data and shouldn’t be thought-about in isolation or as an alternative choice to measures of efficiency ready in accordance with IFRS.

Revenues Per Pound

This press launch refers to revenues per pound bought, V2O5 revenues per pound of V2O5 bought, V2O3 revenues per pound of V2O3 bought and FeV revenues per kg of FeV bought, a non-GAAP efficiency measure that’s used to offer traders with details about a key measure utilized by administration to watch the efficiency of the Company.

This measure, together with money working prices and complete money prices, is taken into account to be one of many key indicators of the Company’s means to generate working earnings and money move from its Maracás Menchen Mine and gross sales actions. These measures differ from measures decided in accordance with IFRS, and aren’t essentially indicative of web earnings or money move from working actions as decided below IFRS.

The following desk supplies a reconciliation of this measure of revenues per pound bought, V2O5 revenues per pound of V2O5 bought, V2O3 revenues per pound of V2O3 bought and FeV revenues per kg of FeV bought, as per the Q1 2024 unaudited condensed interim consolidated monetary statements.

	Three months ended
	March 31, 2024			March 31, 2023
Revenues – V2O5 produced1	$	21,558		$	34,526
V2O5 bought – produced (000s lb)		3,113			3,798
V2O5 revenues per pound of V2O5 bought – produced ($/lb)	$	6.93		$	9.09
Revenues – V2O5 purchased1	$	988		$	2,528
V2O5 bought – bought (000s lb)		176			309
V2O5 revenues per pound of V2O5 bought – bought ($/lb)	$	5.61		$	8.18
Revenues – V2O51	$	22,546		$	37,054
V2O5 bought (000s lb)		3,289			4,107
V2O5 revenues per pound of V2O5 bought ($/lb)	$	6.85		$	9.02
Revenues – V2O3 produced1	$	6,203		$	1,483
V2O3 bought – produced (000s lb)		668			134
V2O3 revenues per pound of V2O3 bought – produced ($/lb)	$	9.29		$	11.07
Revenues – V2O3 purchased1	$	”		$	1,155
V2O3 bought – bought (000s lb)		”			88
V2O3 revenues per pound of V2O3 bought – bought ($/lb)	$	”		$	13.13
Revenues – V2O31	$	6,203		$	2,637
V2O3 bought (000s lb)		668			223
V2O3 revenues per pound of V2O3 bought ($/lb)	$	9.29		$	11.83
Revenues – FeV produced1	$	12,249		$	17,428
FeV bought – produced (000s kg)		569			568
FeV revenues per kg of FeV bought – produced ($/kg)	$	21.53		$	30.68
Revenues – FeV purchased1	$	1,120		$	301
FeV bought – bought (000s kg)		51			10
FeV revenues per kg of FeV bought – bought ($/kg)	$	21.96		$	30.10
Revenues – FeV1	$	13,369		$	17,730
FeV bought (000s kg)		620			578
FeV revenues per kg of FeV bought ($/kg)	$	21.56		$	30.67
Revenues1	$	42,118		$	57,421
V2O5 equal bought (000s lb)		6,096			6,281
Revenues per pound bought ($/lb)	$	6.91		$	9.14
1. As per be aware 18 of the Company’s Q1 2024 unaudited condensed interim consolidated monetary statements.

Cash Operating Costs Excluding Royalties Per Pound

The Company’s press launch refers to money working prices excluding royalties per pound, that are non-GAAP ratios primarily based on money working prices and money working prices excluding royalties, that are non-GAAP monetary measures, as a way to present traders with details about a key measure utilized by administration to watch efficiency. This data is used to evaluate how effectively the Maracás Menchen Mine is performing in comparison with plan and prior durations, and in addition to evaluate its general effectiveness and effectivity.

Cash working prices consists of mine web site working prices similar to mining prices, plant and upkeep prices, sustainability prices, mine and plant administration prices, royalties and gross sales, normal and administrative prices (all for the Mine properties phase), however excludes depreciation and amortization, share-based funds, overseas trade positive aspects or losses, commissions, reclamation, capital expenditures and exploration and analysis prices. Operating prices not attributable to the Mine properties phase are additionally excluded, together with conversion prices, product acquisition prices, distribution prices and stock write-downs.

Cash working prices excluding royalties is calculated as money working prices much less royalties. Cash working prices per pound and money working prices excluding royalties per pound are obtained by dividing money working prices and money working prices excluding royalties, respectively, by the kilos of vanadium equal bought that had been produced by the Maracás Menchen Mine. Cash working prices, money working prices excluding royalties, money working prices per pound and money working prices excluding royalties per pound, together with revenues, are thought-about to be key indicators of the Company’s means to generate working earnings and money move from its Maracás Menchen Mine. These measures differ from measures decided in accordance with IFRS, and aren’t essentially indicative of web earnings or money move from working actions as decided below IFRS.

The following desk supplies a reconciliation of money working prices and money working prices excluding royalties, money working prices per pound and money working prices excluding royalties per pound for the Maracás Menchen Mine to working prices as per the Q1 2024 unaudited condensed interim consolidated monetary statements.

	Three months ended
	March 31, 2024			March 31, 2023
Operating costsi	$	49,707		$	45,931
Professional, consulting and administration feesii		462			844
Other normal and administrative expensesiii		279			309
Less: ilmenite costsi		(47	)		”
Less: iron ore costsi		”			(273	)
Less: conversion costsi		(2,023	)		(1,918	)
Less: product acquisition costsi		(2,050	)		(4,178	)
Less: distribution costsi		(1,818	)		(1,447	)
Less: stock write-downiv		446			”
Less: depreciation and amortization expensei		(8,077	)		(7,251	)
Cash working prices		36,879			32,107
Less: royalties1		(1,673	)		(2,445	)
Cash working prices excluding royalties		35,206			29,572
Produced V2O5 bought (000s lb)		5,753			5,741
Cash working prices per pound ($/lb)	$	6.41		$	5.58
Cash working prices excluding royalties per pound ($/lb)	$	6.12		$	5.15

i.	As per be aware 19 of the Company’s Q1 2024 unaudited condensed interim consolidated monetary statements.
ii.	As per the Mine properties phase in be aware 15 of the Company’s Q1 2024 unaudited condensed interim consolidated monetary statements.
iii.	Year ended as per the Mine properties phase in be aware 15 much less the rise in authorized provisions of $491 (for Q1 2024) as famous within the “other general and administrative expenses” part on web page 6 of the Company’s Q1 2024 unaudited condensed interim consolidated monetary statements.
iv.	As per be aware 5 of the Company’s Q1 2024 unaudited condensed interim consolidated monetary statements for ilmenite completed merchandise and warehouse provides, and together with a write-down of vanadium bought merchandise of $(341).

EBITDA and Adjusted EBITDA

The Company’s press launch refers to earnings earlier than curiosity, tax, depreciation and amortization, or “EBITDA”, and adjusted EBITDA, that are non-GAAP monetary measures, as a way to present traders with details about key measures utilized by administration to watch efficiency. EBITDA is used as an indicator of the Company’s means to generate liquidity by producing working money move to fund working capital wants, service debt obligations, and fund capital expenditures.

Adjusted EBITDA removes the impact of stock write-downs, impairment costs (together with write-downs of vanadium property), insurance coverage proceeds obtained, actions in authorized provisions, non-recurring worker settlements and different expense changes which are thought-about to be non-recurring for the Company. The Company believes that by excluding these quantities, which aren’t indicative of the efficiency of the core enterprise and don’t essentially replicate the underlying working outcomes for the durations offered, it can help analysts, traders and different stakeholders of the Company in higher understanding the Company’s means to generate liquidity from its core enterprise actions.

EBITDA and adjusted EBITDA are supposed to offer extra data to analysts, traders and different stakeholders of the Company and wouldn’t have any standardized definition below IFRS. These measures shouldn’t be thought-about in isolation or as an alternative choice to measures of efficiency ready in accordance with IFRS. These measures exclude the impression of depreciation, prices of financing actions and taxes, and the consequences of modifications in working working capital balances, and subsequently aren’t essentially indicative of working revenue or money move from working actions as decided below IFRS. Other firms could calculate EBITDA and adjusted EBITDA in a different way.

The following desk supplies a reconciliation of EBITDA and adjusted EBITDA to web earnings (loss) as per the Q1 2024 unaudited condensed interim consolidated monetary statements.

	Three months ended
	March 31, 2024			March 31, 2023
Net loss	$	(13,006	)	$	(1,207	)
Finance prices		1,812			1,426
Interest earnings		(306	)		(712	)
Income tax expense		22			333
Deferred earnings tax restoration (expense)		(5,329	)		1,589
Depreciationi		8,724			8,044
EBITDA	$	(8,083	)	$	9,473
Inventory write-downii		4,080			”
Write-down of vanadium property		(114	)		”
Movement in authorized provisionsiii		491			119
Adjusted EBITDA	$	(3,626	)	$	9,592

i.	As per the consolidated statements of money flows within the Company’s Q1 2024 unaudited condensed interim consolidated monetary statements.
ii.	As per be aware 5 of the Company’s Q1 2024 unaudited condensed interim consolidated monetary statements.
iii.	As per then non-recurring objects part on web page 5 of the Company’s Q1 2024 administration’s dialogue and evaluation.

_____
1 Revenues per pound bought are non-GAAP ratios with no customary that means below IFRS, and might not be akin to comparable monetary measures disclosed by different issuers. Refer to the Non-GAAP Measures part of this press launch.
2 Defined as present property much less present liabilities per the consolidated statements of economic place.
3 Conversion of tonnes to kilos, 1 tonne = 2,204.62 kilos or lbs.
4 Fastmarkets Metal Bulletin.
5 Adjusted EBITDA is a non-GAAP monetary measure with no customary that means below IFRS, and might not be akin to comparable monetary measures disclosed by different issuers. Refer to the Non-GAAP Measures part of this press launch.
6 The money working prices excluding royalties and revenues per pound per pound bought are reported on a non-GAAP foundation. Refer to the Non-GAAP Measures part of this press launch. Revenues per pound bought are calculated primarily based on the amount of V2O5 bought in the course of the acknowledged interval.
7 Effective grade represents the share of magnetic materials mined multiplied by the share of V2O5 within the magnetic focus

View supply model on businesswire.com: https://www.businesswire.com/news/home/20240515289077/en/

For additional data:
Investor Relations
Alex Guthrie
Senior Manager, External Relations
+1.416.861.9778
aguthrie@largoinc.com

Source: Largo Inc.

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