LGO - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen. Welcome to the Largo Resources Ltd.

First Quarter 2021 Results Conference Call. [Operator Instructions]. This call is being recorded on May 13, 2021. to conference like Guthrie. to now would turn over the Alex I go Please ahead.

Alex Guthrie

and Largo's largoresources.com. recorded, everyone, Financial you, of tomorrow welcome, Thank operator, Resources Investor to will available Call. section call within the replay website Results Today's First is a being at and our be starting Conference XXXX Quarter

also on the company's Our first release, press available results MD&A and all quarter XXXX financial statements are website.

limitation, forward-looking those will hear future during discussion statements, Some including, the of without information you outlook. of regarding will business today's consist

In which contained is available Market during also first quarter MD&A, market obtained derived trends press faith release are economic such of data our non-IFRS XXXX that materially on our are and Actual provided per non-IFRS this industry call. discussed use to also costs royalties, information SEDAR financial from addition and on data be or it and anticipated industry accurate cash is these has measures, by company's from and good and and conference incorporated in differ Largo information risk affect revenues EDGAR. concerning and the available operating management in reliable. which been cash website total results Largo's by and upon such that discussed those results costs available and based our the which pound is and and of excluding company's detailed also sources. and other this call latest believes as -- filings, Further sold measures industry during XXXX on AIF factors will estimates could website. the the company's public operating today's costs results sources in are results are during reference industry could from cash regarding call

the independently future However, we have and based. trends are accuracy which verified guarantee of the of information, upon assumptions not such we cannot projections

U.S. presented dollars, be results today's except as call during noted. in will otherwise all Lastly, financial

will first first provide be on QX CEO, XXXX Largo's company's who Largo's Paulo the will additional and XXXX company's Misk, followed quarter Cleave, President by performance. who from then the Ernest Speaking results; will detail provide highlights financial CFO,

will on Engineering, development. Commercial, sales Clean Following Ernest, Mr. who and Mr. market. Vollant, Butt, trading Director Largo's VP an division well an as vanadium the update -- progress company's of Shazad Paul Largo's And be call update on progress today's provide of VP as Largo's and will provide the will Energy concluding

Q&A turn will call we company's the Finally, will I provided Paulo opening for our the call now open over to portal. to to questions remarks.

Paulo Misk

Thanks, Alex. year been one communities and the over way another. everyone to thanks a has business be call since for the affected It began, pandemic and just COVID-XX or And to global in people, joining continue today.

updated at production for continue was in capacity gratitude and to while an and of help of increase completed a Largo to January, XXXX utmost the Our to consistently We targets productive we the of mitigate the our fully committed and set and delivered these thoughts comprehensive in remain to program continue our proud our affected the entire have is very adapt and be to our the at In beginning workers safety COVID-XX the with this the on health those unprecedented virus. continues protocols performing The maintenance our for frontline and extended maintain following people who to I'm our nameplate new health times, company. facility protecting communities. addition Brazil. plant operation safety team our necessary and the spread extremely during local project by quarter to protocols. throughout

month by nameplate reach per QX XXXX. tonnes of new to end VXOX production of our X,XXX expect capacity of We the

X.X manufacturing Clean we be our from advancing annual global In Clean in manufacturing April, progress scaling considerable stack long-duration This facility sector. fast-growing capability the of an the U.S.-based to Energy facility demand storage our hours. expected made development begin and secured our our to energy gigawatt division also in-house meet up the product to headquarters center, of which will Energy capacity manufacturing is division. have We

location manufacturing VRFB a division approved system. assembly also We U.S. facility production for the Clean Hampshire, in New our containerized and electrolyte Energy the for of

experience the We company's at Mr. as experience was the and U.S. Minopoli of Algonquin to continue forward view global value of the additional the update Largo Energy of of energy for over and Operations Directors; in company with in Utilities and source extensive Senior providers. Robertson with carbon U.S. the development extensive the the for soon. to industry the Ian also provide energy Clean Corp. of by executive have and strong robust position reduction internationally. experience the prove our utility-scale as invaluable Mr. strengthened U.S. we Energy technology QX division our extensive targets, opportunities our major to projects, both leadership of Salvatore as market Board division. Clean energy regulated has brings executive creation demand and utility Co-Founder team associated energy VP execution sector also Clean division. our appointment He Ian of of years industry our on Energy XX and advance and Largo's look strategy and will including development team, of execution strategic brings we projects well as Salvatore growth holding in a both continue renewable Supported successful in merchant to an to

a and XXXX, per in attributable income QX with to to representing per reduction pleased achieved USD in additional results, million. delivered $X.XX. million XX.X of pound X,XXX increase X% and in balance earnings quarter QX higher March. to in in were with a subsequent shutdown to QX the a with equipment. April to global X financial January impact cooler Largo kiln of in contributing up liquidity company's This tonnes XX the quarterly of XXXX to solid shutdown further I an revenues am in was the Moving Largo required along and decrease the a shutdown of that main revenues USD new XX% commodity company million XX.X% January. implement strong XXXX. The with I'm of of primarily lasted the planned for or of for of for was ended improvement first also to VXOX. QX lower Again, XXXX related ramp in the production We price $X.X months cash the completed quarter share February ramp-up tonnes position X,XXX the This a report X-X, basic the of than the The activities and days, and a with VXOX XX.X XX.X% sold. XXXX. And upgrades produced that commissioning and updates. net pleased report commissioning recovery over

With global is over in sold in the decrease return sales equivalent, of representing lower to of XXXX. regards the recovery result XXXX, activity, to QX a QX was the XXXX. company The XXXX. XX% production during a levels QX lower quarter-over-quarter expected this Following sales, X,XXX tonnes VXOX of also

of of validating environment. the completed like first divisions, established higher in ore from of the our We new also report to step while We are iron to the Menchen ore internal price would key pleased company and sale material ore capitalizing viability Maracás Mine. iron added of April its sale that the commercial in iron highlight first a highlight that sales was this benefit the our

end our material continue users and in We material discussions our with sales of to XXXX. this expect active for complete additional

announce on expected million, will the price The new specific early USD the provide details ilmenite will investment at time. from is Menchen and cost tons to XXX,XXX concentrate concentration Mine. approval being We is engineering approximately construction Commercial production approximately to look incurred of be XXXX. these its March, in In at construction costs year. excited capacity of such with plants to the was of expected of this ilmenite new in and majority to XXXX, plant and quantity these Maracás XX plant company per

product dioxide our a plan our to from to also concentrates. titanium ilmenite evaluate We produce as possible further segment follow-on potential

provide to associated updated conjunction the which our in is economics anticipated in of projects technical report, late XXXX. expect We these with QX

this the diversifying is the another of and in We structure. project ore revenue are increasing our company's sales. with step combined It with iron as excited prospect

very under the pleased Nasdaq that on on of with the representing assist are company. in We symbol believe to also growth report U.S. XX, We our April more significant plan. this improve the trading began diversified milestone as company's we developing listing Largo's with provide a and share continue evolution LGO, of investors, common the liquidity a shareholder increased Largo the base anticipated will visibility in prospective

fundamentals. advancing path XXXX, becoming leading I pleased focused Clean as the Looking technology. energy on in company's ahead, with so storage Energy delivering sheet balance by supported continue healthy market of superior diligently in and our in a far with favorable the long-duration player on we we VRFB sector growth vanadium our remain profitable am division a the progress

over create quarter We reduction continue the company, who financial Ernest, a me And call global performance. into provide value from to and this targets. to demand will view significant sector to let sector by opportunity with first our transformational for the as supported entrance turn increasing our highlights that, carbon

Ernest Cleave

everyone, Thank you, us for you, Paulo, thank joining today. and

of XXXX. X,XXX of and revenues $X.X In compared provided performance which due costs XXXX. fees for was $X finance previously in in loss QX a our million per X% tailwinds quarter. Basic Paulo Revenues of in as first pound company in million prices QX decrease million commodity in sales company costs. $X.XX $X.XX sold these $X.X the but compares $X.XX for equivalent. in basic per XXXX. exchange The earnings XXXX, foreign of in per X% XXXX management were recorded QX increase revenues operating mentioned, evaluation for $XX.X net share to for to and costs, a in represents professional, increased was tonnes movement primarily which revenues pound revenues XXXX, by and of earnings net of an This in decrease share to VXOX recognized QX income of over the as partially decrease and well financial from recognized QX positive consulting per the exploration This As QX QX offset compares to $XX.X to elevated income XXXX. costs, in by XXXX, QX million

in offtake amortization million, compares by $XX.X include QX million million operating million in QX in $XX.X production and in $XX.X QX with of direct related XXXX; which $X.X compares million, XXXX, $XX.X in mainly XXXX. XXXX; depreciation $X.X X of compares production QX $X.X QX costs versus front, million million, QX the million of direct The $X.X from costs QX XXXX which and of versus in decrease million operating $X.X $X.X royalties XXXX. in in increased mine cost costs costs mine conversion $X.X costs in acquisition in conversion in which On XXXX, of of QX X% X with costs operating XXXX; seen VXOX the to for VXOX X and quantities production of equivalents XXXX; to with in in costs ferrovanadium and to its QX versus and fees cost related decrease incurred costs to with million customers. is costs XXXX; million the during equivalent to XXXX. royalties, attributable for XXXX, QX XXXX sold distribution cash resulting largely sold, to The incurred costs expenses QX is excluding in administrative shipping the costs in the products exclude in a into and include other management to the delivering XXXX pound converting pounds customers VXOX on general responsible costs, decrease XXXX. from its calculated to increase VXOX $X.XX produced only XXXX not and were professional sold then total turn, delivery shutdown In to QX and the and company VXOX of distribution $X.XX company's customers. costs was of QX royalties compared Total planned operating per QX partner products with due and consulting compared total QX sold. in for is QX Cash and

in the million were $X.X is in XXXX, and total and XXXX primarily The cash increase compared XXXX trading QX in XXXX. with costs connection fees were management to QX sales Professional costs Energy were with QX consulting For operational in not million QX XXXX. segment in incurred and company's QX $X.X that Largo $X.XX. attributable Clean

from incurred segment corporate regulatory the in loss in The by process. company's XX% $X by and capital items exchange XXXX This QX attributable QX QX payable items cash operating working in dollar-denominated relation the activities and Cash cash to million. increases primarily a in partially XXXX. cash XXXX. XXXX capital due $X.X activities from December of by the settlement dollar and primarily of liabilities $XX working in and decrease to movement approximately QX strengthening listing addition, U.S. This on million of XX% used in million by increase Brazilian is foreign U.S. decreased Nasdaq was provided XX, million driven in XXXX in accounts an XXXX of and operating an legal a and XXXX In items QX the before net working is costs against Brazil. the of net $XX increase in provided QX since real accrued $X.X offset inventory to in in by of million. is The increased during balances amounts liabilities largely receivable capital to

and vanadium sheet on in focused As company's delivering Paulo profitable remain we supported XXXX, the by balance fundamentals. market growth healthy mentioned, favorable extremely

of XXXX, $XX the which in with is utilized as as recently inclusive to for The million who an repayment $XX let a QX due $XX sales annum year will over to occurred the working to expect projects. X.XX% market. together company's the the million as during interest provide which ongoing capital million, a vanadium company of cash update and well per growth We Vollant, of Brazil Paul on repaid a facility in financed at accrued that, company's it progress lump the of the be capital sum be With is hand X trading of and will range debt me rate XXXX. million for facility in million $XX and free working $XX

Paul Vollant

Thanks, thanks, In as VXOX Largo for and both X,XXX company tonnes Ernest, QX of as the sold VXOX the grade ferrovanadium. delivered and joining today. call XXXX, equivalent. everyone, standard high-purity well

actively operations logistics chain globally. to manage premium our supply and provide We customers to and services products continue to

the sector. in XXXX, in an solid past expectations the markets price impact developing in markets XXXX. industry for quarter, currently Europe the average of $X.XX all a vanadium chemical only to of now recovery consumption high-purity The strong was per pound average QX VXOX in market particular main maintain and aerospace focus expect of from with COVID-XX $X.XX, Metal lagging the a the due During sectors. Bulletin in $X.XX price key of gradual as Europe the company's steel products. new pandemic the average this and Demand We VXOX. pound The is behind XX% in increase strong by the is on current QX on of per remained published

sales Importantly, market focus, we're battery interest Clean for system. users' the very excited extremely our of growing with into end opportunities flow are about the and our the redox commercial a key Energy division, VCHARGE is we expanding our pleased vanadium

of doubt a With leading, become have our energy to long-duration the I addition provider. no will Minopoli Largo team, Salvatore storage that

and first a Finally, in sale ore, since couple March, our of then, more. concluded iron we finalized

ambitious driven in world-class opportunity our in by optimistic of targets we by about provide focusing Engineering, on industry very COX Clean of supply, a With vanadium Largo's developments I energy with globally, several battery. a opportunities. the summary, quarter. it vast Energy will we And player superior and international over supported are maximize the In the solid to Butt, hand historical first are market record post-COVID overview will prices. stimuli, division key storage We an Shazad as fundamentals becoming discussion in our our reduction VP who of that, advanced with are to VCHARGE the domestic are buyers and current we

Shazad Butt

everyone Thank again joining you, today. thanks Paul, the call for and to

Clean really beginning of a had As division. mentioned, year we establish Paulo and working to very this our and Energy Ernest productive

the expected supply time for the product Energy required company's the chain on deployments, of also stack deliver began and development targeted an for This of will In manufacturing hours X.X During manufacturing and in structure. location Clean our to manufacturing and headquarters Clean our per strategy center a with the we Largo the QX as capacity year. XXXX, global Massachusetts, cost division. of to establish Energy nameplate gigawatt April finalized lines facility act company of XXXX, secured

We're in and the we've electrolyte in X location containerized Hampshire also we'll bit context to mentioned our before, shortly. manufacture To these conclude well From be continue efficient as facilities, well addition, of batteries' sites manufacturing of manufacture product work and activities regulatory containers the with customer is the both Massachusetts project to give progressing shipped development requirements deployments. New containers as the as that hiring personnel the our anticipated UL facility. solution, also process In storage battery New these components this will the a our electrolyte the a to to our through certification additional systems. we'll production ongoing. as more stacks UL the also stacks. approved battery system facilities, the this XXXX simple directly to electrolyte of And Hampshire, the and XXXX in the VCHARGE growth expect support lot be as for a and house under There's done targets and for

This the will the updated to our With hand first for regard. back call in world systems to and sell that, a applications, As a the we're Alex driven economic discussions towards the utilizing We with at to the And Paul Largo, a trend proprietary around in system reduction technologies. VCHARGE that end shift efficiently by renewable has clear demand I'll need into seeing battery clear as applications VCHARGE as long-duration long-duration can certainly storage, key have users Largo remains advantage opportunity reiterate, our over significant be for see emissions pioneered integrate this energy I'll energy this only active deploy accomplished for and we grid. and system. a team something targets carbon mentioned, global operational competing market market longer-duration storage the now, keep and our with by Q&A. we,

Alex Guthrie

the questions through or for Thanks, in today thanks, and everyone, Shazad, advance. portal providing

first from Our questions at RBC. Andrew of set Wong comes

how The this demand Are into inventories production well? is hand with this them. me translate vanadium? first seeing very increased increased let is margins demand Chinese question to has China highs. reads: as this on one production to record translate seen and you. pre-COVID still Europe, Have improved steel into for impacting in levels. and please record Paul, steel strong steel over you production of out comment you gotten steel Also, at production back And European

Paul Vollant

very of are has in There price official U.S. Andrew. XX% start solid Certainly, stronger been been on the supply. growth Europe, start year indicate Thanks, than inventory vanadium about has of no in industry but in in global but the since the also that on since would demand the steel definitely figures basis, the demand year China, a the increases the of

So impact yes, very industry we're vanadium good production steel increased the seeing relates the demand. it in to of as

Alex Guthrie

question Do half the production like capacity nameplate to Andrew next global you'll process Paulo. Once going? you, up, off how ramped reads: expect? of you can what is the above The in this of ramp-up pass run I'll to able be XXXX? recoveries we think from kind fully second

Paulo Misk

Thanks, February project In increase I Andrew, We March, and up. in to the due the January. keeping completed was you nameplate commissioning well. are and and ramp hope successfully the lower production

we conclude tonnes QX. this we already X,XXX to to that in April, very expect happy But have We are report VXOX. of process produced in

the ramp-up QX this recoveries, expecting as lower period. April, a and QX, we unchanged. global XX% the So in in to XX% commission second was In result already production With in lower regard recovery in it had remains for a are to however, company's of and guidance cost and this and reach in semester. QX we despite XX%, production XXXX of

are we the and QX. in very been very reached in pleased we confident all results So have

Alex Guthrie

levels, this from let Maracás per one sell over realize tonne next are to at ore iron ore one at any And China. the you what Mine? kind reads: you in do these sitting me at your record what Have options is Menchen hand able monetizing ore iron prices? more? expect profit Paul, been you. With of $XXX stockpiled to The to around

Paul Vollant

Yes. Thanks, Andrew.

ore domestic iron today, and the a first sales customers discussions possible. price As concluded since have Brazil. international we for goal Largo to And in view, from commercial the a as opportunity buyers. really, advanced point try more current see And we're local of of and ore our and I real its seize March, profits levels opportunity maximize in couple mentioned From this to product. a iron as with in as window sales before, several much with is we

it. we're So at hard working very

Alex Guthrie

Paul. I'll the to one pass Thanks, you well. as next over

sales you've how from realized Just to And discuss do aerospace affect think pricing? you seen if a in high-purity industry. will this rebound

Paul Vollant

On the market our Largo that focus mean, really on addition our pandemic third very the impacted an the product, market high-purity been market. aerospace Also, high-purity is value well has Demand, its returns. sales. of our price key of is year aerospace to QX on this vanadium note trioxide, low when a sector a demand moment, from so by of expand at yes, customers products, to of the the increasing impact that quarter Largo. was industry, and industry. commercial on the in enable the And VXOX important And again, that thing this the direct our the COVID-XX we're positioned for quarter has will in final I share share highly

fast-growing, and sector. our want we're chemical pressing in market a to hard Finally, stress Largo, sector the high-purity very the is also chemical for share just to market increase I that also

Alex Guthrie

Thanks, Paul.

in Andrew are kind Another Also, business? into CapEx reads: us you for me over this you Ernest, past costs expect LCE question what do to CapEx anticipated XXXX? able any of we much you. insight higher pass to expect SG&A let for from can And one give XXXX? this

Ernest Cleave

to Clean our for relate LCE such the tanks, as off-the-shelf your a pumps. and and specifically division And it's of operations endeavor Andrew, parts, Thanks, think as very to let I saying capital-intensive note majority clamps the of questions. important assembly start not Energy our is it me thanks that by in

of in As $X we million our mentioned approximately for million $X in we CapEx release month, XXXX. LCE this to anticipate earlier

to to costs provide $X overhead plan in we range to for we to Further will development approximately look OpEx, million guidance of which XXXX. and any be future $XX our million that, assume. during remaining Regarding expect battery, we a to

Alex Guthrie

reads: last of this hand what Ernest. over NPV you. from one plant? new the And type ilmenite from I'll expect Andrew Thanks, do returns to or concentration The Paulo, you question

Paulo Misk

Thanks, Andrew. Good question.

expected excited the revenue an its are the project, in this increase forward, company's diversification, following We about completion. and looking

If at movement you sit market, steadily price look the latest ilmenite the currently about at and per increasing in been $XXX tonne. have

low expected project. OpEx We a this for

As has in the material, the the feedstock is been mined already that in needed for Russia ilmenite our operation vanadium. for

feasibility the to this of also the production that commercial per source capacity titanium We to segment also production I early concentrate XXX,XXX XXXX, project, continue this of add expect in about we be will more starting much our the to we and to of titanium like -- that including which we tonnes value and would dioxide project, highlight will have, plant's explore from year. were resource additional expect that we value ilmenite extracting company. complete to

Alex Guthrie

the these is, in of what questions the firm read next for please current for Paulo. set outlook per The the are timing terms Omega. And of The you CapEx costs? company where XXXX of the expect for off And one getting batteries? option pound? new expect Cooperman from do? next one and of reads, to team orders XXXX. sales price comes for expected we provide you Lee your is these prices? When the Battery Day? do expected should we for do X and appropriate. answer last in you have have succession And What what consultants Thanks, vanadium at an I'll what is And can their

Paulo, you. I'll pass to So the few first off

Paulo Misk

to questions, and And will your users we in and Lee. end for with I first pretty first Lee, multiple I close three, then our soon. active will the pass to take are Thanks, I contract, working think, discussion the Alex. thanks Ernest. are

are you our new we disclosed capabilities manufacturing recently X.X -- that to multiple nameplate secured of have with the gigawatt hours. we build capacity aware, As facilities

years' capacity in time, behavior. nameplate in We and course, on depending expect of the reach delivering market starting the X the XXXX batteries storage

an With division, details were targets. and are the our have of some be very the fundamentals their also So new access in the with respect with are market well we power the storage we'll that projects world. key related that, understanding the Largo that make industry as hope, excited contract Clean to excited individuals timing finalizing provide in on to and Day, developing signed, including with We and the advice the the companies about I and Jeff that, and the look battery structure. the on we as hired the assist Board internally, of that very Chamberlain around overall Energy in contract contacts Energy -- advise Clean energy opportunities energy the updates and provide announce Battery details strategy, to we titans, service Both our industry and Largo's to division, the of cherry exists Largo already of all soon gain advisory to first will with individuals the announcement pie. further Riley. and with energy with will Bart on storage overall leveraging regard

the practice. market of is to compared costs, advisory In fee normal terms their

expertise please. ask their invaluable. are that service they will remaining questions, Ernest, to you the the However, I will provide and answer

Ernest Cleave

for the thanks Lee, Paulo. the questions for and Thanks, joining call.

sold pound it per was same in that, revenue Our was that compare QX year the $X.XX. $X. if last to And you period,

$X pound will But programs instituted. chance as see year. of economic recoveries remainder around anticipate of $X mentioned, you the new being a is and throughout stimulus per appreciation, to post-COVID As effect price there Paul a of the we

$X VXOX, year, and for million million CapEx CapEx, sustaining for our for our various $X the of to million to places, $X are million these -- to $XX $X then LCE. Regarding $X in and numbers we million but CapEx $X million for to stripping for $X million we million capitalized expect

towards as year, that for our per provide provided lines disclosure. we for We time usual of the later haven't CapEx to the XXXX, want guidance end but

Alex Guthrie

Thanks, Ernest.

Our from next come Stanley. Morgan set of questions Alba Carlos from De

one and I'm The targets? to over first hand one place? expected share take Battery volumes will this Day you EBITDA And going Paulo, potential when can the is, you. to

Paulo Misk

today. announced Thanks, you this Carlos, facility joined build we I excited answered capacity. Battery remain to Lee, very nameplate as call appreciate hour with with have X.X I the And Day. manufacturing that our gigawatt our out and We already

expect We not X day. up, disclose hope starting It full I announce a for That's be year. the will to years' would thank storage And we really it huge in of and a that you will anyway, your a But capacity. all next be amount to ramp we And like Day delivering the be targets there for take we reach every details Battery year. issue But material energy batteries that have will expect can time, those deployed us. this to too soon. in question. long

Alex Guthrie

reads: and/or costs The And pass remaining XXXX? Ernest, next Paulo. any to over Carlos is in seasonality for this Thanks, I'll one of the one you. from there volumes

Ernest Cleave

mentioned unchanged think January. to but back I in [indiscernible] on volumes, is refer to XXXX. Thanks, as I Alex. shutdown deliver will guidance Carlos, with seasonality. just we targets expect those a in were our and impacts there that to But our planned previously, as reiterate really to respect result were of some nothing we there those

Alex Guthrie

Ernest. Thanks,

at Lawson Capital. We questions by Paradigm Gordon have a few submitted

to expect volume The division over VXOX first of how Paulo, this or this you the battery I'll in one reads: hand do year next? to much use you.

Paulo Misk

Yes, build for to up able is Thanks, delivering manufacturing in XXXX focus beyond. and be to use Energy thank this our and We division for capability call and in any year. the expect attending -- the Clean the you today. all Gordon, vanadium to structure in batteries and not this our do we

to very XXXX, after the our amount demand it's remain the in subject to market. And deployed. batteries demanding, expect we -- of So will grow we as

in this very So we regard. optimistic are

that this say priority. and Day, But for to disclosed storage will in important I our anyway, energy Battery be it's more patience. the is your details think ask development I

Alex Guthrie

Paulo. Shazad, Thanks, X.X is this other systems building Are to question going hour the last Gordon pass let The there reads: VionX from over one options? from year the you. going to per be facility agreement? patented same new the be gigawatt to obtained me

Shazad Butt

And you, this. happy answer Thank thanks, Gordon. sir. to I'm

the manufacturing patented, system. gigawatt X.X global capabilities our energy the ongoing Keep produce for stack technologies which Massachusetts current focus superior other sector. manufacturing located to to requirements the energy our be is and VCHARGE our And a best facility The it's deploying and product and mind, range to be now, and scale hours Energy Wilmington, also correct. long-duration of suited up will X options Hampshire current in right leveraged Mass. You're existing storage configurations product, regards is for the long-duration will and remain of competitive in for in to hour division XX then, our new But as product our product in to act power and sector. is location on storage with goal Clean facility the development. in-house consistently within a innovate headquarters the New up scalable to

Alex Guthrie

Shazad. Thanks,

Young. few come Our Jim from questions next

can demand? to demand reads: provide customer into by first going to market and I'm this regard you The customer in insight aerospace you. geography over particularly Paul, to one type, and hand high-quality

Paul Vollant

Thanks, Sure. Jim.

well at to each big regions about we diversified. very in being budget another, for look steel on the see steel customers, geographies highest essentially, the we Americas, demand price. depending where But of our It region and X X/X EMEA In to for industry. the quarter from Asia, normally sell X the and we're if depends would we terms

focused America. especially are aerospace Europe market, in high-purity our industry, the and For we really on North

Alex Guthrie

Paul. Thanks,

this ore reads: Paulo, a appears be getting to lower. or near-term Jim you. Is one company's from over the grade this one issue? let me secular longer-term to Next hand

Paulo Misk

today. Thank joining Jim. Alex. you, you, Thank you for Thank

lower. X.XX%, don't ore what see be between it least if don't see strong now. getting don't X.XX%, production will this doing to -- XXXX, has behavior varied But the deposit get But to -- XXXX, believe, since data go that up plan not getting was grade, in effective than I of close a which remaining it behave you in the you in I To the our Amparo done of mainly this look It's we you be fact, at and to Campbell. as operation, look frank, expect got And I the -- north -- the have -- In grade, grade, this our our I at think it's that anyway, in the is pit. when talking to and sequences company's Norte, largely true, deeper contain Novo VXOX mining XXXX. the at are mining related the we a grade. grade of better you If does ore deposits I high the trend of on a we Campbell. Campbell, it's lower the the at located variance about

we drilling final on we content of based our not have amount titanium work titanium and okay? on done results, the have the a the it's the exploration -- tech It's since grade, don't based XXXX. report all However,

the that you will you you XXXX compensate. titanium the look more those -- is other report, grade deposits. have think And tech it at I in will If see

tech concluding this are report. We

lower to that -- incorporate addition the mine. to and results grade, the [indiscernible] So competitiveness our updated our overall project will we look compensate of plan. report mine release early remain -- and our the expand reserves tech June of believe in to in our in upgrade really but We I the [indiscernible]

very see a plan, a very good for can mine I good So future Maracás. in our

Alex Guthrie

next and respect Paulo. be any concerned cost over me pass is to The let question to we one see this issues trends Ernest, Thanks, to if about. you. with

Ernest Cleave

to to you. Jim. are that there from the issues concerned Thanks, wouldn't be I hear from say company's perspective. about Good

rates, the the has are real against strengthening Canadian documented and dollar, well a interest some while We candidly, the dollar very easing. dollar. strengthening of has trend, seeing the increased Brazil in recently U.S. U.S. versus a engaged quantitative the Brazilian similar U.S. the of

round second interest increases continue policies anticipate to a rate Brazil So and unabated. U.S. of we in for monetary

for strengthening. both the continued that say real would case I Brazilian So was

continue cost all again, and Thank to say our can. monitor necessary But will unchanged the guidance make movements remains the adjustments you. We I for XXXX. will we

Alex Guthrie

Thanks, Ernest. on commodity Many is over lagging. others, this me from significantly, And the to you. any with prices, have ore market. other this? to copper, pass amongst vanadium regard you Do additional but The let and question last one iron insight Paul, is are up Jim notably

Paul Vollant

than And copper, highs. It's vanadium historical year. and a increase it's the beginning very understand actually ore question. by I Jim. are prices that year, and this iron increase, But gone this is look with better the much not And up of at in Thanks, more Sure. since increase if true XX%. prices from that, percentage since perspective unlike than copper vanadium have we start this the prices iron of line ore

So vanadium fact really, them most there's industrial metals have even And enjoyed to not today means a more the that at increase. for very are far. highs prices historical good XXXX that room perhaps the so

a board. XX% we this had of start plus really, good the yes, across year, So

Alex Guthrie

Paul. few received just more Thanks, questions. I follow-on a

drawing draw So from the the Do with is next working facility, financing you Ihle plan on this you capital more you. Wainwright. you why one is balance This draw when And And money? to the Can from on one lastly, Heiko cash your of QX? more to things H.C. this of end respect there. money few just Ernest, facility? a have over million as $XX I'll pass

Ernest Cleave

Thank you.

so working think main one will to we say here the able rate, a I that we be is really were we capital opportunistic was attractive and interest drivers. wanted what at secure this of very financing to

the division. company's our plant We growth LCE and expect project utilize the including the additional growth to developments facility -- with projects, VXOX for

So down. is drawn already million that $XX

Alex Guthrie

at you over to another one this coming Thanks. and in meet quarters distribution from And of production Do one just guidance? follow-on to annual even a maybe Morgan And an the Stanley. here, maybe expect you. then Paulo, Carlos pass your sales I'll

Paulo Misk

your question. Yes. Thank Alex. you, Thank for you

planning will in we form we're will are to media the Battery this going model. business day, We of a which the our the of discuss focus going development company and be to healthy strategy. webcast show Also, -- economics we're and the large Day,

going VCHARGE be I how the it and from Also, main technologies. differentiates think will one unique. it's because our we're to should system it that really things of other show talk about

that It's show which forwards going provide have the to stage. higher will cost already. It total very a us on third-generation we lower have the a density, advanced We allow battery.

we'll things So opportunity It much going will valuable, during details in also, the attending all to think, But all be I as you very, well. press the event very this provide sizable release and our be show well. will issue we Battery be, Day soon. will clear we're I And Battery those this a appropriate expect energy can of the in details long-duration sector. the date And and time of the growth Day. as

Alex Guthrie

one Paulo. pass follow-on I Ernest, have Carlos. to this from just over last you. And maybe Thanks, I'll one

pass capital have quarters. over with to one for the Just cash this regard you. working expectations from in to if and we just coming I'll operations And

Ernest Cleave

is that capital I assume working our think what we stage in largely can embedded already. the is organization this at

receivables we really June, in year, and going typical So of inventory the during are and levels May, organization place July that last our payables forward. put of

organization, X,XXX. warehouses the increase and inventory significant pretty So those a between are sort in try X,XXX in X,XXX organization, whether or transit of levels, standard. they absent tonne be in floating and We or and of keep in inventory our just scale shy levels the marks

continue don't working doing capital, large see movements correctly. in I'm So understanding your so, I we will if question but

Alex Guthrie

to going remarks. Great. Thanks. Paulo pass session. that question-and-answer closing I'm and concludes back any gentlemen, our Ladies it for over to

Paulo Misk

today. XXXX our for targets forward everyone to on And in emphasize just delivering to cost like guidance sales for year we thanks And to Alex. that unchanged. production ahead. remains this I time your Thanks, would and those look

this division a Clean we look that and remains creation Energy releasing value for We in are forward source confident Largo, of the our significant regard future. will in strategic to announcements

behalf to progress on with in you our I here our thank the for quarter, growing your So of time look forward and team next at you Largo, today. sharing

Operator

and disconnect gentlemen, Ladies call and your please lines. today. your you ask concludes for this conference thank participating you that We for

Largo (LGO) 13 May 212021 Q1 Earnings call transcript