Largo Resources (LGO) AI Stock Analysis

• Market Cap: $101.33M
• Dividend Yield: N/A
• Average Volume (3M): 122.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -29.63%
• EPS Growth: 24.23%
• Country: CA
• Employees: 500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): N/A
• Shares Outstanding: 64,133,000
• 10 Day Avg. Volume: 264,674
• 30 Day Avg. Volume: 122,993
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.40
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: -10.23
• Enterprise Value/Ebitda: -14.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: C$1.50 ▼(-2.60% Downside)

Largo Resources' overall stock score is primarily impacted by its poor financial performance and negative valuation metrics. Technical analysis further supports a bearish outlook, with the stock showing signs of oversold conditions and trading below key moving averages. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Sustainable Mining Practices

The company's focus on sustainable mining and innovative technologies can enhance operational efficiency and environmental stewardship, potentially leading to long-term cost savings and improved regulatory compliance.

Low Leverage

A low debt-to-equity ratio indicates financial stability and flexibility, allowing the company to better navigate economic downturns and invest in growth opportunities without excessive financial strain.

Energy Sector Partnerships

Partnerships in the energy sector can expand market reach and distribution capabilities, aligning with the growing demand for energy storage solutions and potentially driving revenue growth.

Negative Factors

Declining Revenue

Declining revenues indicate potential market share loss or decreased demand, which can impact long-term profitability and hinder the company's ability to invest in growth initiatives.

Negative Profit Margins

Negative profit margins reflect challenges in cost management and pricing power, which can erode competitive positioning and financial health over time.

Cash Flow Inefficiencies

Inefficiencies in cash flow conversion can limit the company's ability to fund operations and growth, increasing reliance on external financing and potentially affecting long-term sustainability.

Largo Resources Business Overview & Revenue Model

Company Description

Largo Resources (LGO) is a Canadian mining company focused on the production and sale of vanadium and other specialty metals. The company primarily operates in the mining sector, with its flagship project being the Maracás Menchen Mine located in Brazil, which is one of the largest primary vanadium mines in the world. Largo Resources is committed to sustainable mining practices and the development of innovative technologies to enhance the efficiency and environmental stewardship of its operations.

How the Company Makes Money

Largo Resources generates revenue primarily through the extraction and sale of vanadium pentoxide, a key component in steel production and energy storage solutions. The company benefits from a robust pricing model based on global demand for vanadium, particularly as industries shift towards green technologies and energy storage solutions. Key revenue streams include the direct sale of vanadium products to customers in various sectors, including metallurgical and chemical industries. Additionally, Largo Resources may have significant partnerships with companies in the energy sector, which can enhance its distribution capabilities and market reach, further contributing to its earnings.

Largo Resources Financial Statement Overview

Summary

Largo Resources is experiencing significant financial challenges, with declining revenues, profitability, and cash flow generation. The balance sheet is stable with low leverage, but negative return on equity and cash flow inefficiencies are concerning.

Income Statement

Largo Resources has faced declining revenues and profitability over the recent periods. The TTM data shows negative gross and net profit margins, indicating challenges in maintaining cost efficiency and profitability. Revenue growth has been negative, reflecting a downturn in sales. Historical data shows a significant decline from 2021, where the company was profitable, to the current losses, highlighting a concerning trend.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, suggesting conservative leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio remains stable, showing a solid capital structure, but the negative ROE is a significant concern.

Cash Flow

Cash flow analysis reveals challenges in generating positive free cash flow, with a negative growth rate in the TTM period. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. Despite these issues, the free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	108.53M	124.92M	198.68M	229.25M	198.28M	119.99M
Gross Profit	-23.74M	-20.90M	23.93M	59.53M	65.27M	31.60M
EBITDA	-16.66M	-33.11M	3.82M	37.71M	69.45M	35.58M
Net Income	-37.26M	-49.83M	-30.34M	-2.23M	22.57M	6.76M
Balance Sheet
Total Assets	340.48M	318.67M	381.62M	355.75M	313.91M	297.81M
Cash, Cash Equivalents and Short-Term Investments	5.62M	22.11M	42.71M	54.47M	83.79M	79.14M
Total Debt	13.75M	17.50M	76.53M	42.05M	17.55M	24.79M
Total Liabilities	171.14M	147.44M	125.82M	81.20M	48.21M	50.64M
Stockholders Equity	163.22M	164.82M	248.65M	265.39M	265.70M	247.16M
Cash Flow
Free Cash Flow	-34.19M	-31.07M	-32.51M	-42.18M	12.38M	-77.61M
Operating Cash Flow	3.61M	11.16M	21.20M	3.46M	39.78M	-59.51M
Investing Cash Flow	-36.80M	-42.23M	-62.88M	-60.15M	-27.40M	-18.11M
Financing Cash Flow	3.11M	12.04M	29.13M	26.43M	-6.90M	30.23M

Largo Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.54 is below the 20-day moving average (MA) of 1.83, below the 50-day MA of 2.11, and below the 200-day MA of 2.14, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 39.13 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LGO	43 Neutral	$101.33M	-1.95	-20.54%	―	-29.63%	24.23%
FL	42 Neutral	C$151.17M	-9.30	-136.16%	―	―	29.98%
MSR	42 Neutral	C$120.16M	48.65	16.18%	―	―	―
LITH	41 Neutral	C$93.06M	54.22	3.32%	―	―	-69.60%
AHR	34 Underperform	C$238.85M	-84.80	-385.36%	―	―	-267.65%

Largo Resources Corporate Events

Largo Inc. Secures $23.4 Million to Alleviate Financial Strain

Largo Inc. has successfully closed a registered direct offering and a concurrent private placement, raising a total of US$23.4 million. The funds will be used to support the company’s principal operating subsidiary, Largo Vanádio de Maracás S.A., by sustaining working capital and facilitating payments to lenders and suppliers. This financial maneuver is crucial as the company faces liquidity constraints that are impacting production rates at its Maracás Menchen Mine. The Toronto Stock Exchange granted Largo a Financial Hardship Exemption, allowing it to proceed with the offering without the usual shareholder approvals, highlighting the company’s urgent need to improve its financial situation.

The most recent analyst rating on (TSE:LGO) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Largo Resources stock, see the TSE:LGO Stock Forecast page.

Largo Inc. Announces $23.4 Million Offering Amid Financial Challenges

Largo Inc. has announced a US$23.4 million offering consisting of a registered direct offering and a private placement to address liquidity constraints and meet equity contribution requirements for a debt rollover agreement. The proceeds will be used to pay Brazilian lenders and suppliers, impacting the company’s production rates due to current financial challenges.

The most recent analyst rating on (TSE:LGO) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Largo Resources stock, see the TSE:LGO Stock Forecast page.

Largo Secures Debt Deferral Agreement with Brazilian Lenders

Largo Inc. has secured a binding term sheet with five Brazilian lenders to defer $84.2 million in principal debt payments until March 2026, with a potential extension to September 2026. This agreement is contingent on Largo raising at least C$30 million by November 2025. The deferral provides Largo with additional time to restructure its debt, potentially strengthening its financial position and operational flexibility. This development reflects the lenders’ support and could positively impact Largo’s strategic initiatives and stakeholder confidence.

The most recent analyst rating on (TSE:LGO) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Largo Resources stock, see the TSE:LGO Stock Forecast page.

Largo Resources Navigates Production Gains Amid U.S. Tariff Challenges

Largo Resources reports sustained production levels of vanadium pentoxide and ilmenite, with ongoing expansion efforts in its ilmenite plant expected to increase capacity significantly by the end of 2025. However, the company faces challenges due to increased U.S. tariffs on high purity vanadium imports and liquidity issues, leading to delayed deliveries and contract renegotiations. Largo is actively seeking financing solutions and lobbying for tariff exemptions to mitigate these impacts, while also exploring strategic alternatives for its tungsten projects to unlock value.

The most recent analyst rating on (TSE:LGO) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Largo Resources stock, see the TSE:LGO Stock Forecast page.

Largo Inc. Secures $6 Million to Bolster Liquidity Amid Vanadium Market Challenges

On August 8, 2025, Largo Inc. entered into a promissory note and share pledge agreement with ARG International AG, resulting in a debt of USD$6,000,000. The agreement includes pledging 65.7% of its shares in Largo Physical Vanadium Corp. as security. This move is aimed at enhancing Largo’s liquidity and operational flexibility amidst ongoing challenges in vanadium pricing.

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.

Largo Inc. Reports Improved Q2 2025 Results Amid Tariff Challenges

Largo Inc. reported its financial results for Q2 2025, highlighting a 60% improvement in net loss compared to Q2 2024, driven by a 17% reduction in operating costs and efficiency improvements. Despite a decline in revenues due to weak vanadium prices, the company secured a $6 million loan to support liquidity and continued efforts to optimize performance. The recent U.S. tariff increase on Brazilian imports poses potential challenges, prompting Largo to reassess its U.S. customer strategy while maintaining its commitment to key sectors.

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.

Largo Inc. Reports Decline in Mid-2025 Revenues

On August 12, 2025, Largo Inc. released its unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2025. The report highlighted a decrease in revenues compared to the previous year, with $26.1 million for the three months ended June 2025, down from $28.6 million in 2024, and $54.4 million for the six months, down from $70.7 million in 2024. This financial performance indicates challenges in maintaining revenue levels, which could impact the company’s market positioning and stakeholder confidence.

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.

Largo Secures $6 Million Loan to Bolster Working Capital Amidst Market Challenges

Largo Inc. has secured a $6 million loan from ARG International AG to support its working capital amidst low vanadium prices. The loan, secured against Largo’s equity in Largo Physical Vanadium Corp, aims to enhance liquidity and operational flexibility as the company transitions to steady-state operations. This financial move is expected to help Largo manage current market challenges while maintaining its production and cost efficiency targets.

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.

Largo Inc. Reports Improved Q2 2025 Vanadium Production and Strategic Energy Storage Agreement

Largo Inc. reported improved vanadium production in Q2 2025, with 2,256 tonnes produced, marking a significant increase from Q1 2025. The company is executing an operational turnaround plan, resulting in higher production volumes and recovery rates, while addressing liquidity constraints from earlier lower production. Additionally, Storion Energy, a joint venture of Largo, signed a strategic agreement with TerraFlow Energy to supply vanadium electrolyte and battery stacks for a 48 MWh flow battery project in Texas, advancing Largo’s investment in the U.S. energy storage sector.

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.