Largo Drops 5% As Details Q4 2022 Production, Sales; Sets 2023 Guidance

(MT Newswires) — Largo Inc. (LGO.TO) said Tuesday that it produced 2,004 tonnes of vanadium pentoxide equivalent from the Maracas Menchen mine in the fourth quarter of 2022, compared with 2,003 tonnes produced in the same period last year.

Largo, which at last look fell 5.1% on the TSX and lost 4.5% on Nasdaq in early Tuesday trading, said its fourth-quarter production was impacted by lower quantity of mined material due to a mining contractor transition. This resulted in the company’s inability to effectively mitigate the impacts of corrective maintenance in November 2022 and heavy rain in December 2022.

Sales of vanadium pentoxide equivalent fell to 2,774 tonnes from 2,899 tonnes.

Full-year 2022 production increased to 10,436 tonnes from 10,319 tonnes, while sales fell to 11,091 tonnes from 11,393 tonnes.

For 2023, Largo expects to produce 11,000 to 12,000 tonnes of vanadium pentoxide equivalent, with sales pegged at 10,300 to 11,300 tonnes.

“To ensure normal operating performance throughout 2023, our operational team performed mitigation efforts to rectify rain-related impacts and preventive maintenance measures during the operational downtime in December 2022 and January 2023,” President and CEO Paulo Misk said.

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