Largo Inc. Q4 FY2022 earnings call

• 2022 was challenging with production and cost issues; Q4 production affected by heavy rainfall.
• Expect 10% production increase in 2023, with aggressive high-purity vanadium production plan.
• Cost management efforts underway, expecting cash costs including royalties to decrease.
• Ilmenite plant on track for completion in 2023, generating new revenue source.
• Clean Energy's VRFB project in Spain on track for provisional acceptance by end of May 2023; MOU with Ansaldo extended to March 31, 2023.
• Largo Physical Vanadium (LPV) NAV at CAD2.56 per share, 35% above closing share price; marketing campaign underway.
• ESG progress: S&P global CSA rating improved by ~38%, top quartile in mining peer group; fifth sustainability report planned for second half of 2023.

In 2022, Largo's mining segment produced over 10,400 metric tonnes of V2O5 at an annual cash operating cost excluding royalties of $5.57 per pound. Q4 2022 production was just over 2,000 metric tonnes of V2O5 at a cash cost excluding royalties of $5.15 per pound. Revenue for 2022 was up 16% over 2021, with Q4 2022 revenues at $47.5 million from 2,772 tonnes of V2O5 equivalent ($7.77 per pound). The Clean Energy division had an inventory write-down of approximately $6.4 million.

• Expect 10% production increase in 2023 over 2022.
• Cost reduction including royalties, aiming for cash costs closer to lower end of guidance range ($4.85-$5.25 per pound) by year-end.
• Ilmenite plant expected to be operational and selling ilmenite by Q3 2023.
• LPV to focus on closing the discount to NAV with marketing campaign.
• Clean Energy to continue with VRFB deployments and joint venture progress.

• Operational impacts from weather events affecting production.
• Delays in Clean Energy projects like VRFB deployment.
• Market price fluctuations for vanadium affecting revenues.
• Dependence on successful execution of cost control and production plans.

Q: About Ansaldo partnership, details on what Ansaldo brings and Largo's plan?

A: Ansaldo brings industrial capacity and energy industry know-how; potential joint venture 50-50, Ansaldo to fund early costs, share operations.

Q: Vanadium price strength, sustainability?

A: Demand from traditional markets (steel, chemicals) and energy storage (VRFB) is strong; aerospace recovery faster than expected, VRFB deployments and capacity growth driving demand.

Q: Lower mill recoveries due to stockpile material?

A: Result of combination of disseminated and massive material blending, being addressed to maintain proper blending.

Q: High purity vanadium definition and price premium?

A: High purity is above steel industry grade, low contaminants; premium is confidential but varies by customer specs and applications.

Q: Electrolyte production and in-house capability?

A: Initially send to toll converters for first stage, but could do in-house with additional CapEx, logistics important.