Largo Inc. Secures $10 Million Factoring Facility to Boost Liquidity

Largo Resources ( (TSE:LGO) ) has provided an update.

Largo Inc. announced a $10 million non-recourse factoring facility through its subsidiary, Largo Resources USA, to monetize accounts receivable from vanadium product sales. This facility aims to improve working capital efficiency by providing quicker access to liquidity, aligning cash inflows with expenditures, and supporting day-to-day operations as part of the company’s operational turnaround plan. The facility may expand to $30 million, subject to customer and credit approvals, and is expected to enhance Largo’s financial flexibility, aiding in stabilizing production and improving sales.

The most recent analyst rating on (TSE:LGO) stock is a Buy with a C$5.00 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.

The overall stock score is primarily driven by financial performance challenges, including declining revenues and profitability, which are of significant concern. Technical indicators suggest bearish momentum, and valuation metrics highlight further financial weaknesses due to unprofitability. While corporate efforts to improve operations are underway, the impacts remain to be seen.

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

More about Largo Resources

Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its Maracás Menchen Mine in Brazil. As one of the world’s largest primary vanadium producers, it serves industries such as steel, aerospace, defense, chemical, and energy storage. The company is committed to operational excellence and sustainability, and it is also invested in the energy storage sector through its joint venture, Storion Energy.

Average Trading Volume: 28,309

Technical Sentiment Signal: Sell

Current Market Cap: C$114.1M

For detailed information about LGO stock, go to TipRanks’ Stock Analysis page.