- In Q1 2022, vanadium prices rose by almost 30%, but Largo generated a net loss of $2 million.
- The company encountered temporary technical and logistical problems, and the Brazilian real has been strong over the past few months.
- Production is back to normal and Largo can generate free cash flow of around $20 million if vanadium prices average $9 per pound between May and December.
- Unless vanadium prices decrease significantly or Brazil gets strong rains in Q4, I expect that Largo’s market valuation could double by the end of 2022.
For further details see:
Largo: Financial Performance Over The Remainder Of 2022 Should Improve