Largo provides update on cost reduction initiatives at Brazil vanadium operation

Largo highlighted its cash operating cost metrics, emphasizing the company’s focus on cost reduction initiatives at the Maracas Menchen Mine in Brazil. The company has made continued progress in reducing costs at its vanadium operation in Brazil, which have started to yield results, excluding the impact of certain non-recurring items. During the fourth quarter of 2023 and the first and second quarter of 2024, the company’s cash operating costs excluding royalties per pound were impacted by certain non-recurring items, mainly the impact of write-downs of the company’s produced vanadium finished product inventories due to the declining price environment. These write-downs do not fully represent the company’s ongoing operational efficiency or the success of its cost reduction initiatives, especially when presented on a cost per pound basis. When these adjustments are excluded, the underlying unit costs more accurately demonstrate Largo’s sustained focus on optimizing its cost structure.