Largo Inc. Q3 FY2024 earnings call

Production - Delivered highest quarterly vanadium production in seven quarters (3,072 tonnes), up 42% y-o-y. - Ilmenite production ramped up, with 16,383 tonnes produced in Q3, a 90% increase from the previous quarter. ### Cost Management - Reduced operating costs by 31%, maintaining a competitive position in the vanadium sector. - Cash operating costs excluding royalties decreased by 43% y-o-y. ### Commercial Strategy - Francesco D'Alessio promoted to Chief Commercial Officer, implementing a refreshed sales strategy to optimize inventory and build customer relationships. ### Technical Report - Recently announced technical report highlights update showed a 67% increase in mineral reserves and 64% increase in mineral resources, expanding mine life to 2054. ### Largo Clean Energy - Advancing discussions with Stryten Energy for a potential joint venture in vanadium flow battery technology, leveraging Largo's vanadium flow battery tech and Stryten's manufacturing/market reach.

In Q3 2024, Largo's vanadium production was 3,072 tonnes, up 42% from Q3 last year. Revenue was $29.9 million, with $27.2 million from vanadium sales (91% of total revenue) and $2.7 million from ilmenite sales (9% of total revenue). Operating costs were reduced by 31%, and cash operating costs excluding royalties were $3.12 per pound sold, a 43% reduction from the previous year.

Production - Confident in meeting full-year 2024 production, cost, and sales guidance. ### Vanadium Supply Agreement - Vanadium supply agreement unlocks ~$23.5 million of additional liquidity from vanadium inventories upon delivery between Q4 2024 and Q1 2025. ### 2025 Outlook - Expect cost improvements to continue, with prices in the US market potentially recovering faster than in Europe. - Ilmenite production to ramp up with lower costs when production and recoveries are optimized, aiming for $0.30 to $0.50 per pound vanadium production costs when fully optimized.

• Market Volatility: Soft demand in Europe and oversupply in the Chinese market impacting vanadium prices. - Geopolitical Factors: Impact on vanadium supply from certain regions affecting US market access. - Ilmenite Ramp-up: Still in ramp-up phase, need to optimize recoveries and production for cost reduction.

Q: Where is the demand for vanadium coming from and when will it impact results?

A: Demand is mainly from the aerospace sector in the US, with impacts expected in 2025 contracts.

Q: Outlook on vanadium prices in 2025?

A: Expect a 2-tiered market with higher prices in the US due to limited supply from other regions.

Q: Cost outlook for ilmenite production per pound?

A: When ilmenite production is ramped up and optimized, expect costs in the $0.30 to $0.50 per pound range for vanadium production.

Q: Debt and status of Majorca storage facility?

A: No debt attributable to Majorca storage facility; final commissioning of the battery system is in the final stages.