Largo Inc. Secures $23.4 Million to Alleviate Financial Strain

Largo Resources ( (TSE:LGO) ) has issued an announcement.

Largo Inc. has successfully closed a registered direct offering and a concurrent private placement, raising a total of US$23.4 million. The funds will be used to support the company’s principal operating subsidiary, Largo Vanádio de Maracás S.A., by sustaining working capital and facilitating payments to lenders and suppliers. This financial maneuver is crucial as the company faces liquidity constraints that are impacting production rates at its Maracás Menchen Mine. The Toronto Stock Exchange granted Largo a Financial Hardship Exemption, allowing it to proceed with the offering without the usual shareholder approvals, highlighting the company’s urgent need to improve its financial situation.

The most recent analyst rating on (TSE:LGO) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Largo Resources stock, see the TSE:LGO Stock Forecast page.

Spark’s Take on TSE:LGO Stock

According to Spark, TipRanks’ AI Analyst, TSE:LGO is a Neutral.

Largo Resources faces significant financial challenges, with declining revenues and profitability being the most impactful factors. Technical analysis shows mixed signals, with short-term bearish momentum but some medium-term support. The negative P/E ratio and lack of dividend yield further weigh down the stock’s attractiveness.

To see Spark’s full report on TSE:LGO stock, click here.

More about Largo Resources

Largo Inc. operates in the mining industry, primarily focusing on the production of vanadium. The company is known for its operations at the Maracás Menchen Mine in Brazil, which is a significant source of vanadium, a critical material used in various industrial applications.

Average Trading Volume: 79,000

Technical Sentiment Signal: Sell

Current Market Cap: C$119.3M

See more insights into LGO stock on TipRanks’ Stock Analysis page.