Largo Resources (TSE:LGO)
TSX:LGO
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Largo Resources
(TSX:LGO)
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Rating:43Neutral
Price Target:
C$1.50
▼(-17.58% Downside)
Action:Reiterated
Date:05/15/26
Overall score is pressured primarily by weak financial performance (sustained losses and cash burn) and bearish technicals (price below key moving averages with negative MACD). Valuation adds limited support due to negative earnings and no provided dividend yield.
Positive Factors
Balance sheet buffer
Debt remaining below equity and equity substantial relative to assets gives Largo a durable financial buffer versus many commodity peers. This capacity helps absorb cyclical revenue swings, supports short-term liquidity needs and provides room to fund operations or capex without immediate refinancing pressure.
Negative Factors
Persistent unprofitability
Multi-year losses, including a gross loss and continued operating deficits, indicate the business has not returned to sustainable profitability since 2021. Extended unprofitability erodes equity, impairs ROE, and undermines the firm’s ability to self-fund growth or withstand prolonged commodity downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet buffer
Debt remaining below equity and equity substantial relative to assets gives Largo a durable financial buffer versus many commodity peers. This capacity helps absorb cyclical revenue swings, supports short-term liquidity needs and provides room to fund operations or capex without immediate refinancing pressure.
Read all positive factors
Largo Resources (LGO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$108.78M
Dividend YieldN/A
Average Volume (3M)122.99K
Price to Earnings (P/E)―
Beta (1Y)1.77
Revenue Growth-2.28%
EPS Growth-31.85%
CountryCA
Employees500
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.95
Shares Outstanding83,674,000
10 Day Avg. Volume264,674
30 Day Avg. Volume122,993
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$3.86Price Target Upside112.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.12
Revenue Forecast (FY)C$163.80M
Largo Resources Business Overview & Revenue Model
Company Description
Largo Inc. engages in the development and sale of vanadium-based utility scale electrical energy storage systems in Canada. The company operates in five segments: Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, ...
How the Company Makes Money
Largo primarily makes money by selling vanadium products produced from its Brazilian mining and processing operations. Its core revenue stream is the sale of vanadium pentoxide (V2O5) to industrial customers, with pricing and volumes influenced by...
Largo Resources Earnings Call Summary
Earnings Call Date:Nov 12, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed view with significant achievements in production and cost management but faced challenges due to lower vanadium prices and market demand. While operational efficiencies and strategic initiatives show promise for future growth, current financial performance is still under pressure from external market factors.Positive Updates
Record Vanadium Production
Largo delivered its highest quarterly vanadium production in 7 quarters, producing 3,072 tonnes, up 42% from Q3 last year.
Negative Updates
Revenue Impacted by Lower Vanadium Prices
Revenues were $29.9 million, impacted by lower vanadium prices and reduced sales volumes, with the average benchmark price per pound of V205 in Europe down to $5.71 compared to $8.03 in Q3 2023.
Read all updates
Q3-2024 Updates
Positive
Negative
Record Vanadium Production
Largo delivered its highest quarterly vanadium production in 7 quarters, producing 3,072 tonnes, up 42% from Q3 last year.
Read all positive updates
Company Guidance
During the Q3 2024 earnings call for Largo, the company provided detailed guidance on several operational and financial metrics. They reported their highest quarterly vanadium production in seven quarters, reaching 3,072 tonnes, a 42% increase compared to Q3 2023. Operating costs were reduced by 31%, dropping from $44 million in the previous year to $29.5 million this quarter, with cash operating costs excluding royalties at $3.12 per pound sold, a 43% decrease. Their net loss improved to $10.1 million, including $3.3 million in nonrecurring items, compared to a $11.9 million loss the previous year. Additionally, Largo announced a vanadium supply agreement expected to unlock $23.5 million in liquidity. The company also highlighted a 67% increase in mineral reserves and a 64% increase in mineral resources, projecting a mine life extending to 2054. Despite ongoing challenges in vanadium prices, the strategic initiatives and production efficiencies position Largo to capitalize on future opportunities.Largo Resources Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
52
Neutral
Cash Flow
24
Negative
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 109.89M | 124.92M | 198.68M | 229.25M | 198.28M |
| Gross Profit | -22.75M | -20.90M | 23.93M | 59.53M | 65.27M |
| EBITDA | -16.54M | -33.11M | 3.82M | 37.71M | 69.45M |
| Net Income | -68.51M | -49.83M | -30.34M | -2.23M | 22.57M |
Balance Sheet | |||||
| Total Assets | 318.75M | 318.67M | 381.62M | 355.75M | 313.91M |
| Cash, Cash Equivalents and Short-Term Investments | 9.72M | 22.11M | 42.71M | 54.47M | 83.79M |
| Total Debt | 0.00 | 17.50M | 76.53M | 42.05M | 17.55M |
| Total Liabilities | 182.22M | 147.44M | 125.82M | 81.20M | 48.21M |
| Stockholders Equity | 130.35M | 164.82M | 248.65M | 265.39M | 265.70M |
Cash Flow | |||||
| Free Cash Flow | -37.66M | -31.07M | -32.51M | -42.18M | 12.38M |
| Operating Cash Flow | -10.22M | 11.16M | 21.20M | 3.46M | 39.78M |
| Investing Cash Flow | -26.44M | -42.23M | -62.88M | -60.15M | -27.40M |
| Financing Cash Flow | 23.89M | 12.04M | 29.13M | 26.43M | -6.90M |
Largo Resources Technical Analysis
Negative
1.82
Price Trends
1.60
Negative
1.77
Negative
1.79
Negative
Market Momentum
-0.10
Positive
32.60
Neutral
13.88
Positive
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 1.82 is above the 20-day moving average (MA) of 1.44, above the 50-day MA of 1.60, and above the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 32.60 is Neutral, neither overbought nor oversold. The STOCH value of 13.88 is Positive, 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% | |
43 Neutral | C$108.78M | -1.29 | -45.97% | ― | -2.28% | -31.85% | |
| ― | C$19.42M | -33.36 | -5.19% | ― | ― | 87.71% | |
49 Neutral | C$112.80M | -9.30 | -34.10% | ― | ― | 28.46% | |
44 Neutral | C$28.22M | -1.12 | 115.07% | ― | -15.39% | 46.81% | |
43 Neutral | C$95.74M | -1.27 | -109.76% | ― | 329.00% | -152.23% | |
41 Neutral | C$92.68M | -0.98 | -159.83% | ― | ― | 23.26% |
* Basic Materials Sector Average
TSE:LGO
Largo Resources
1.30
-0.45
-25.71%
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Largo Resources Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresRegulatory Filings and Compliance
Largo Boosts Vanadium Output and Seeks Multi-Metal Expansion at Maracás Mine
Positive
Apr 14, 2026
Largo Inc. reported a sharp operational rebound in the first quarter of 2026, with vanadium pentoxide production more than doubling to 2,616 tonnes and ore mined rising nearly 91%, while sales volumes of vanadium and ilmenite both increased. Manag...
Business Operations and StrategyFinancial Disclosures
Largo Ends Difficult 2025 With Stronger Operations and Tailwind From U.S. Tariff Relief
Neutral
Apr 1, 2026
Largo reported that 2025 was a challenging year marked by U.S. tariffs that curtailed high-purity vanadium sales in the American market, driving a 21% year-over-year drop in fourth-quarter vanadium pentoxide sales and an 8% decline in quarterly re...
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.