Largo (LGO) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues were $24.3M, down from $44.2M in Q4 2023; full-year revenues fell 37% to $124.9M, reflecting lower vanadium prices and sales volumes.

• Net loss for Q4 2024 was $13.0M (including $2.4M in non-recurring items); full-year net loss widened to $50.6M, impacted by $18.7M in non-recurring items.

• Operational turnaround and cost optimization initiatives led to a 30% reduction in Q4 operating costs year-over-year.

• Production and sales were within revised guidance, despite two kiln maintenance shutdowns and challenging market conditions.

Financial highlights

• Adjusted EBITDA improved 195% to $2.3M in Q4 2024; full-year adjusted EBITDA was a loss of $2.1M versus a $11.9M gain in 2023.

• Adjusted cash operating costs excluding royalties per pound fell 39% to $3.05 in Q4 2024 and 22% to $4.05 for the year.

• Cash at year-end was $22.1M, with debt rising to $92.3M from $75.0M year-over-year.

• Basic loss per share was $0.19 in Q4 and $0.78 for the year, compared to $0.21 and $0.51, respectively, in 2023.

Outlook and guidance

• Management maintains 2025 annual guidance ranges and will reassess as operational improvements progress.

• Focus remains on liquidity, refinancing, and additional capital to support ongoing operations.