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Largo Resources
(TSX:LGO)
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Rating:49Neutral
Price Target:
C$1.00
▼(-5.66% Downside)
Action:Reiterated
Date:08/22/26
The score is held down primarily by weak financial performance: deeply negative margins, renewed operating cash burn, and higher leverage. The earnings call improves the outlook with operational recovery signs and actions that reduce near-term liquidity/refinancing pressure (debt extension, contracted demand, and a new byproduct stream), but technical signals are mixed and valuation remains constrained by ongoing losses.
Positive Factors
Operational and revenue recovery
Higher production, sales and revenue indicate improved mine access and execution. If sustained, stronger throughput can improve fixed-cost absorption and support a more durable recovery in operating performance.
Negative Factors
Severe profitability weakness
Sustained negative gross profit and deep net losses show that revenue growth has not yet translated into viable economics. Continued losses constrain internally funded investment and increase dependence on financing or operational recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Operational and revenue recovery
Higher production, sales and revenue indicate improved mine access and execution. If sustained, stronger throughput can improve fixed-cost absorption and support a more durable recovery in operating performance.
Read all positive factors
Largo Resources (LGO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$102.10M
Dividend YieldN/A
Average Volume (3M)116.08K
Price to Earnings (P/E)―
Beta (1Y)1.94
Revenue Growth15.94%
EPS Growth-82.72%
CountryCA
Employees500
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-1.06
Shares Outstanding103,134,000
10 Day Avg. Volume107,127
30 Day Avg. Volume116,076
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.68
Price to Sales (P/S)0.81
P/FCF Ratio-2.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2.70Price Target Upside154.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.25
Revenue Forecast (FY)C$144.63M
Largo Resources Business Overview & Revenue Model
Company Description
Headquartered in Toronto, Canada, Largo Inc. is an enterprise established in 1988 that specializes in the creation and distribution of advanced, vanadium-centric electrical energy storage solutions for large-scale utility applications, primarily w...
How the Company Makes Money
Largo primarily makes money by selling vanadium products, with revenue driven by (1) sales volumes and (2) realized vanadium prices, which can fluctuate with global steel demand and broader commodity market conditions. Its main revenue stream is t...
Largo Resources Earnings Call Summary
Earnings Call Date:Aug 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational momentum — materially higher ore mined, production, sales, revenue growth (+68.5%) and a return to positive adjusted EBITDA — alongside strategic wins (DLA order, debt restructuring, tariff exemption for high-purity oxides, and rapid ramp of copper+PGM byproduct production). However, the company still faces material challenges: a reported net loss driven by noncash write-downs, rising unit costs (adjusted cash operating cost up vs prior year), limited cash at quarter-end, market oversupply/geopolitical supply concentration risks, and short-term trade/production trade-offs (temporary ilmenite pause). On balance, the operational improvements, commercial contracts, and the debt extension materially reduce near-term risk and create multiple value avenues, while management acknowledges remaining work on cost and cash conversion.Positive Updates
Substantial Increase in Ore Mined
Total ore mined rose 46.6% year-over-year to 712,198 tonnes, driven by better mine access and improved execution.
Negative Updates
Reported Net Loss Driven by Noncash Charges
Quarterly net loss of $22.7 million, primarily reflecting a significant noncash write-down of vanadium assets and a deferred income tax expense, plus higher operating, professional and finance costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Substantial Increase in Ore Mined
Total ore mined rose 46.6% year-over-year to 712,198 tonnes, driven by better mine access and improved execution.
Read all positive updates
Company Guidance
Management reiterated full‑year vanadium guidance of 10,500–12,000 tonnes V2O5 equivalent (sales 7,500–9,500 tonnes) and maintained adjusted cash operating cost guidance of $3.50–$4.50 per pound, while introducing initial copper‑PGM concentrate guidance of 300–380 tonnes per month with expected average grades of ~15% Cu, ~41 g/t PGMs+Au and ~53 g/t Ag; operational context included a Q2 vanadium production of 2,900 t (H1 5,516 t), a $60.1M DLA delivery order with at least 20 tonnes/week initial deliveries paid on net‑30 terms, and realized revenue per pound of $6.96.Largo Resources Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 125.48M | 109.89M | 124.92M | 198.68M | 229.25M | 198.28M |
| Gross Profit | -15.97M | -22.75M | -20.90M | 23.93M | 59.53M | 65.27M |
| EBITDA | -20.03M | -16.54M | -33.11M | 3.82M | 38.15M | 69.45M |
| Net Income | -75.21M | -68.51M | -49.83M | -30.34M | -1.45M | 22.57M |
Balance Sheet | ||||||
| Total Assets | 345.64M | 318.75M | 318.67M | 381.62M | 355.75M | 313.91M |
| Cash, Cash Equivalents and Short-Term Investments | 5.48M | 9.72M | 22.11M | 42.71M | 54.47M | 83.79M |
| Total Debt | 114.06M | 106.87M | 17.50M | 76.53M | 42.44M | 17.55M |
| Total Liabilities | 206.47M | 182.22M | 147.44M | 125.82M | 81.20M | 48.21M |
| Stockholders Equity | 132.23M | 130.35M | 164.82M | 248.65M | 265.39M | 265.70M |
Cash Flow | ||||||
| Free Cash Flow | -58.89M | -37.66M | -31.07M | -32.51M | -42.18M | 12.38M |
| Operating Cash Flow | -34.23M | -10.22M | 11.16M | 21.20M | 3.46M | 39.78M |
| Investing Cash Flow | -24.67M | -26.44M | -42.23M | -62.88M | -60.15M | -27.40M |
| Financing Cash Flow | 58.51M | 23.89M | 12.04M | 29.13M | 26.43M | -6.90M |
Largo Resources Technical Analysis
Negative
1.06
Price Trends
0.97
Positive
1.16
Negative
1.44
Negative
Market Momentum
<0.01
Positive
49.93
Neutral
28.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LGO, the sentiment is Negative. The current price of 1.06 is above the 20-day moving average (MA) of 0.99, above the 50-day MA of 0.97, and below the 200-day MA of 1.44, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 28.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LGO.
Largo Resources Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
49 Neutral | C$102.10M | -0.65 | -60.23% | ― | 15.94% | -82.72% | |
45 Neutral | C$83.30M | -0.55 | -118.80% | ― | ― | 21.84% | |
44 Neutral | C$79.88M | -6.21 | -35.01% | ― | ― | 13.65% | |
44 Neutral | C$62.74M | -0.96 | -109.76% | ― | 329.00% | -152.23% | |
43 Neutral | C$14.24M | -22.92 | -4.15% | ― | ― | 86.05% | |
43 Neutral | C$18.26M | -0.53 | 66.83% | ― | -64.07% | 7.64% |
* Basic Materials Sector Average
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Largo Resources Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Largo Restructures $82.2 Million Debt, Extends Maturity to 2030
Positive
Aug 20, 2026
Largo Inc. and its Brazilian subsidiary LVMSA have agreed a binding term sheet with a syndicate of major Brazilian banks to restructure about $82.2 million of LVMSA’s commercial bank debt, extending final maturity from September 2026 to Marc...
Business Operations and StrategyRegulatory Filings and Compliance
Largo Launches Copper and PGM By-Product Output After Brazilian Approval
Positive
Aug 10, 2026
Largo Inc. has received approval from Brazil’s National Mining Agency to produce and sell copper and platinum group metals, along with nickel and cobalt, as by-products from its Maracás Menchen vanadium operations. This regulatory miles...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.