Largo Inc. (NASDAQ:LGO) Q3 2024 Earnings Conference Call November 14, 2024 10:00 AM ET

Company Participants

Alex Guthrie - Director of IR
Daniel Tellechea - Interim CEO
Celio Pereira - COO of Brazil
David Harris - CFO
Francesco D’Alessio - President and Chief Commercial Officer

Conference Call Participants

Heiko Ihle - H.C. Wainwright & Co.
Andrew Wong - RBC Capital Markets
Gordon Lawson - Paradigm Capital Inc.
Gary Bryck - Northern Insights Asset Management

Operator

Good day, and thank you for standing by. Welcome to Largo's Third Quarter 2024 Financial Results Conference Call. At this time all participants are in a listen-only mode. After the speaker presentation there will be a question-and-answer session.

I would now like to hand the conference over to your speaker today, Alex Guthrie, Director of Investor Relations. Please go ahead.

Alex Guthrie

Thank you, operator and thanks to everyone who has joined us for Largo's Third Quarter Financial Results Conference Call. Our Q3 2024 financial statements related MD&A and most recent AIF are available on our website at largoinc.com, as well as on SEDAR+ and EDGAR.

Before we proceed, please note that some information discussed today will include forward-looking statements and non-IFRS measures. Please refer to the cautionary notes and non-GAAP section of the company's latest MD&A, financial statements, and AIF which are all available online. Additionally, all figures mentioned are in US dollars, unless otherwise stated.

Today's speakers include Daniel Tellechea, Interim CEO and Director; Celio Pereira, CEO of Largo Brazil; David Harris, CFO; and Francesco D'Alessio, CEO and President of Largo Clean Energy.

Following the prepared remarks, we will open the call to questions. Please limit your questions to two and requeue if you have further inquiries to allow everyone a chance to participate.

I will now turn the call over to Daniel.

Daniel Tellechea

Thank you, Alex and good morning, everyone. Thank you for joining us today to discuss our third quarter results. In Q3 Largo continued to make positive strides on several fronts, and I am pleased to highlight a few areas where we are seeing real progress.

First, we delivered our highest quarterly vanadium production in seven quarters, producing 3,072 tonnes, up 42% from Q3 last year. Additionally, we saw another strong quarter in ramping up our ilmenite production, contributing to our efforts in diversifying revenues at Largo. Largo's cost improvements have been equally important during the quarter. We reduced our operating cost by 31%, allowing us to maintain a competitive position within the vanadium sector. And as announced, our vanadium supply agreement, which unlocks approximately $23.5 million of additional liquidity from our vanadium inventories upon delivery, now enables us to strategically manage our inventory while delivering, still meeting our ongoing and future sales commitments -- sorry.