Largo Resources (TSE:LGO)
TSX:LGO
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Largo Resources
(TSX:LGO)
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Rating:47Neutral
Price Target:
C$1.50
▼(-16.20% Downside)
Action:ReiteratedDate:04/04/26
The score is held back primarily by weak financial performance (multi-year losses and poor free-cash-flow generation, including cash burn in 2025), with only partial support from an improved balance sheet (no debt). Technicals add mild headwinds (below key moving averages and negative MACD), while valuation is difficult to assess given a negative P/E and no dividend yield.
Positive Factors
Balance Sheet Strength
A near-zero leverage position and positive equity provide durable financial flexibility: with no debt in 2025 the company can better absorb commodity cyclicality, fund essential maintenance or restart capital programs, and avoid immediate refinancing risk during downturns.
Negative Factors
Sustained Losses and Margin Collapse
Multi-year losses and a shift to negative gross profit in 2025 indicate structural margin deterioration. Persistent unprofitability erodes retained earnings, undermines reinvestment capacity, and means longer recovery times are needed even if commodity prices improve, raising long-term execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A near-zero leverage position and positive equity provide durable financial flexibility: with no debt in 2025 the company can better absorb commodity cyclicality, fund essential maintenance or restart capital programs, and avoid immediate refinancing risk during downturns.
Read all positive factors
Largo Resources (LGO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$149.78M
Dividend YieldN/A
Average Volume (3M)122.99K
Price to Earnings (P/E)―
Beta (1Y)1.60
Revenue Growth-20.57%
EPS Growth-34.04%
CountryCA
Employees500
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.30
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$4.31Price Target Upside140.61% 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:May 20, 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
62
Positive
Cash Flow
24
Negative
| Breakdown | Dec 2025 | 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
Positive
1.79
Price Trends
1.90
Negative
1.70
Positive
1.85
Negative
Market Momentum
-0.05
Negative
50.93
Neutral
76.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LGO, the sentiment is Positive. The current price of 1.79 is above the 20-day moving average (MA) of 1.68, below the 50-day MA of 1.90, and below the 200-day MA of 1.85, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 76.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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% | |
47 Neutral | C$149.78M | -1.30 | -41.23% | ― | -20.57% | -34.04% | |
| ― | C$22.01M | -21.55 | -5.19% | ― | ― | 93.75% | |
48 Neutral | C$109.56M | -9.60 | -35.13% | ― | ― | 36.48% | |
45 Neutral | C$30.71M | -0.48 | 115.07% | ― | 2.76% | -1.06% | |
43 Neutral | C$51.96M | -1.19 | -92.19% | ― | ― | -156.65% | |
42 Neutral | C$84.03M | -0.27 | -265.40% | ― | ― | 62.30% |
* Basic Materials Sector Average
TSE:LGO
Largo Resources
1.79
-0.19
-9.60%
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Largo Resources Corporate Events
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...
Business Operations and StrategyFinancial Disclosures
Largo Holds Vanadium Output Steady in 2025 as Tariffs Bite Sales and Copper-PGM Tests Open New Option
Neutral
Feb 6, 2026
Largo reported 2025 V2O5 equivalent production of 9,150 tonnes, essentially flat year over year and within guidance, underpinned by improved plant stability and higher second-half output that allowed it to defer its annual kiln shutdown to mid-202...
Business Operations and Strategy
Largo Inks US$56 Million Deal to Monetize Iron Ore Calcine Stockpile
Positive
Jan 20, 2026
Largo Inc. has signed a definitive multi-year Ex Works agreement through its Brazilian subsidiary to sell up to 4.5 million tonnes of iron ore calcine stockpiled material, generating expected cash proceeds of more than US$56 million, with initial ...
Business Operations and StrategyPrivate Placements and Financing
Largo Targets Copper and Critical-Minerals Byproducts at Maracás Menchen, Extends US$6 Million Loan
Positive
Jan 12, 2026
Largo has launched new geological and metallurgical studies at its Maracás Menchen complex to evaluate the continuity and recoverability of disseminated copper mineralization, after internal flotation tests conducted for platinum group metals...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Largo Sets Up US$60 Million ATM Equity Offering to Boost Financial Flexibility
Positive
Jan 8, 2026
Largo Inc. has launched a US$60 million at-the-market equity offering program, allowing it to issue and sell common shares on Nasdaq from time to time through H.C. Wainwright Co. as sales agent, giving the company the flexibility to raise capital...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Largo Sets Up US$60 Million At-the-Market Equity Program on Nasdaq
Positive
Jan 8, 2026
Largo Inc. has launched a US$60 million at-the-market equity offering program that will allow it to issue and sell common shares on Nasdaq from time to time through H.C. Wainwright Co. as sole sales agent, giving the company added financial flexi...
Business Operations and Strategy
Largo Moves to Monetize Iron Ore Byproduct in US$56 Million Term Sheet
Positive
Jan 5, 2026
Largo Inc. has secured a binding term sheet through its Brazilian subsidiary for the potential sale of 4.5 million tons of iron ore calcine, a byproduct accumulated over 11 years at its Maracás Menchen vanadium mine in Bahia, Brazil, in a mul...
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.