Largo Inc (LGO) News & EventsLGOLargo Inc

Largo Receives Binding Term Sheet for 4.5M Tons of Iron Ore Byproduct

Largo announced that its Brazilian operating subsidiary has received a binding term sheet related to the potential monetization of 4.5M tons of iron ore calcine material that was produced as a byproduct and accumulated in a stockpile over the past 11 years of Largo's vanadium production at the company's Maracas Menchen mine in Maracas, Bahia, Brazil. The binding term sheet provides for a multi-year Ex Works contract for potential cash proceeds in excess of $56M, subject to final documentation, amendments to certain commercial terms, and customary conditions. The company views this term sheet as an opportunity to unlock value from accumulated materials, reduce future infrastructure requirements for stockpiles and reduce disposal costs while maintaining focus on its primary vanadium business. This binding term sheet underscores market interest in Largo's diversified vanadium byproduct portfolio, which includes materials containing iron ore, titanium, and other mineral components produced alongside the company's core vanadium operations. Through its mining and ore processing activities in the past 11 years, Largo has accumulated several stockpiles of byproduct or processing residue material, representing a significant inventory available for reprocessing and/or commercialization.

Largo announces Q3 earnings per share of 57 cents, compared to a loss of 16 cents in the same period last year.

Reports Q3 revenue $33.3M vs. $29.6M last year. Daniel Tellechea, Director and Interim CEO of Largo commented: "In Q3 2025, we continued to improve our production, increasing it to 2,636 tonnes, up from 2,256 tonnes in Q2 and 1,297 tonnes in Q1. Additionally, this has led to a reduction of our adjusted cash operating costs excluding royalties to $3.03/lb, down from $3.88/lb in Q1. With positive operational improvements on track at the Maracas Menchen Mine, we can turn our attention to our financial position. The recent $23.4 million equity raise and the principal deferral from our Brazilian lenders are two actions taken by Largo. We continue to look for ways to deliver high purity vanadium products for the US and European aerospace and defense industries, and to navigate the geopolitical landscape, inclusive of the US tariffs on our Brazilian products as well as the ongoing geopolitical developments and policy shifts impacting supplying dynamics."