Largo (LGO) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues totaled $26.1 million, down from $28.6 million in Q2 2024, reflecting lower vanadium and ilmenite sales amid weak market prices.

• Net loss improved to $5.8 million in Q2 2025 from $14.5 million in Q2 2024, driven by significant cost reductions and operational efficiencies.

• Operating costs decreased 17% year-over-year to $30.1 million, reflecting a 26% reduction in direct mine and production costs.

• Adjusted cash operating costs excluding royalties per pound sold fell 24% to $3.18, highlighting the impact of cost optimization initiatives.

• Production and sales volumes for vanadium and ilmenite declined year-over-year, but operational recovery rates improved.

Financial highlights

• Revenues per pound sold of V205 equivalent were $6.39 in Q2 2025 versus $6.46 in Q2 2024.

• Mining operations adjusted EBITDA rose to $2.7 million in Q2 2025 from $0.9 million in Q2 2024.

• Basic loss per share improved to $0.09 from $0.23 year-over-year.

• Cash balance at quarter-end was $5.6 million, with total debt at $95.1 million.

• Foreign exchange gain of $4.7 million in Q2 2025, compared to a $4.1 million loss in Q2 2024, aided results.

Outlook and guidance

• Management expects continued benefits from cost reduction and productivity initiatives in future quarters.

• The company is evaluating commercial impacts and potential strategy adjustments due to new U.S. tariffs on Brazilian imports.

• Liquidity is being supported by a $6 million secured loan, with further options under review to enhance financial flexibility.