Largo Reports Q3 2026 Production and Sales Results Reflecting Vanadium Diversification with First Production of Copper, Gold and Platinum Group Metals; Advances Commercial Bank Debt Restructuring
Key Highlights
- ➤2026 vanadium production guidance cut to 9,500-10,500 tonnes
- ➤2026 vanadium sales guidance maintained at 7,500-9,500 tonnes
- ➤Q3 vanadium production fell 20.6% to 2,093 tonnes
- ➤Q3 by-product production began with 108 tonnes copper and precious metals
- ➤Debt agreements now cover approximately 58.4% of commercial bank senior debt
Expert Statements
Alberto Arias, Executive Chairman and Co-Chief Executive Officer of Largo
“During the third quarter, Largo diversified its product mix with the start of production of copper, gold, platinum and palladium as new by-products of Largo's core V₂O₅ production business.”
Alberto Arias, Executive Chairman and Co-Chief Executive Officer of Largo
“V(2)O(5) production at 2,093 tonnes in Q3 2026 reflected our previously announced strategy to reduce inventories and prioritize production of higher-margin products while keeping V₂O₅ sales stable at 2,428 tonnes.”
Alberto Arias, Executive Chairman and Co-Chief Executive Officer of Largo
“While this strategy may lower overall vanadium production volumes, our objective is to improve the value generated per tonne produced, strengthening the economics of our operations.”
Alberto Arias, Executive Chairman and Co-Chief Executive Officer of Largo
“In addition, the previously announced potential expansion of our high-profit-margin copper-gold-PGM business and our continued focus on cost discipline to offset currently high specific consumables costs aim to maximize the value recovered from the Maracás Menchen Mine and metallurgical complex and support Largo's longer-term financial and operating objectives.”
James (Jim) Bannantine, Co-Chief Executive Officer of Largo
“Our commercial strategy is focused on expanding demand for Largo's higher-value vanadium products by deepening relationships with customers in the defense, aerospace and energy storage sectors, including delivering our first purchase order of $60 million of high-purity vanadium to the U.S. Defense Logistics Agency, while advancing the commercial development of our copper, gold and PGM vanadium by-product business.”
James (Jim) Bannantine, Co-Chief Executive Officer of Largo
“We are aiming to increase our high-purity vanadium volumes, with the objective of enhancing realized pricing, improving margins and strengthening cash generation.”
James (Jim) Bannantine, Co-Chief Executive Officer of Largo
“Our recent optimization study indicated the potential to produce high-purity vanadium representing approximately 68% of total output at an overall production rate of approximately 876 tonnes per month.”
James (Jim) Bannantine, Co-Chief Executive Officer of Largo
“We are evaluating the implications of this product mix for production volumes, realized prices, operating margins and cash flow.”
James (Jim) Bannantine, Co-Chief Executive Officer of Largo
“Alongside our vanadium business, primarily converted into ferro-vanadium, we are focused on progressing copper-gold and PGM sales and customer deliveries as we build on the commencement of full-scale production.”
Q3 2026 and Nine-Month Highlights * Vanadium production: 2,093 tonnes of vanadium pentoxide ("V₂O₅") in Q3 2026 vs 2,636 tonnes in Q3 2025 following a strategy to reduce inventories and refocus on high-margin products. Year-to-date 2026 V(2)O(5) production at 7,609 tonnes increased 23% year over year. Q3 2026 sales at 2,428 tonnes remained stable vs 2,417 tonnes in Q3 2025. This reflects Largo pursuing a conscious strategy of reducing inventory to enhance its liquidity and to try to target its sales to profitable demand. * Copper production: 108 tonnes contained in concentrates in Q3 2026; first production recorded, derived as a vanadium by-product. * Gold Production: 289 ounces contained in concentrates in Q3 2026; first production recorded, derived as a vanadium by-product. * Platinum Production: 166 ounces contained in concentrates in Q3 2026, first production recorded, derived as a vanadium by-product. * Palladium Production: 291 ounces contained in concentrates in Q3 2026, first production recorded, derived as a vanadium by-product. * Iron Ore Calcine Sales: 13,902 tonnes to Brazilian domestic market. * Ilmenite Production: Nil, as the Company decided to use its flotation plant infrastructure for higher-margin copper, gold, and platinum group metals ("PGMs") production. Current studies are underway to potentially resume ilmenite production in the medium term. * Concentrate commercialization market acceptance: Largo sold copper-gold-PGMs production to three large commodity traders and one European smelter, reflecting the commercial attractiveness of Largo's by-product concentrates, which include copper, gold, platinum, and palladium. * Mining and recovery performance: Largo mined 543,688 tonnes of ore in Q3 2026, with an effective ore grade¹ of 0.41% V₂O₅ and global recovery² of 81.4%, compared with 611,101 tonnes, an effective ore grade of 0.52% V₂O₅ and global recovery of 79.4% in Q3 2025. * Maintaining vanadium sales guidance but adjusting production to reflect inventory reduction strategy: Largo maintains its V(2)O(5) sales guidance in the 7,500-9,500 MT range but is lowering production guidance to the 9,500-10,500 MT range from 10,500-12,000 MT as it continues to optimize its product mix and production strategy. * Debt restructuring agreements cover approximately 58.4% of commercial bank senior debt: Largo has executed definitive restructuring agreement with Banco Santander (Brasil) S.A. Together with previously announced agreements, these arrangements cover approximately 58.4% of the Company's commercial bank senior debt.
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