Largo poised to trade on Nasdaq, shares advance
Largo Resources Ltd. [LGO-TSX, LGORF-OTCQX] said Friday April 16 that it has received the green light to list its shares on the Nasdaq Stock Market. The shares are expected to begin trading on April 19, 2021, under the trading symbol LGO.
“Listing on the Nasdaq represents a significant milestone in the evolution of Largo as we further execute on strategically developing our U.S.-based Largo clean energy division into an industry-leading, vertically integrated vanadium redox flow battery business,” said Largo President and CEO Paulo Misk.
The newly-formed company, located in Delaware, aims to provide vanadium battery systems for the renewable energy storage market.
“We believe this listing will provide Largo with increased visibility with prospective U.S. investors, improve the company’s liquidity and assist in developing a more diversified shareholder base as we continue on our anticipated growth strategy,” said Misk.
He said the company will company will continue to maintain its listing on the Toronto Stock Exchange.
Largo shares advanced on the news, rising 2.5% or 48 cents to $19.39 in light trading. The 52-week range is $21.80 and $6.90.
Largo is a rare pure-play vanadium producer and is currently one of the world’s lowest-cost producers of the metal. The company is focused on the production of vanadium flake, high purity vanadium flake, and high purity vanadium powder at the Maracas Menchen Mine in Bahia State, Brazil.
In recent years, prices have been driven higher by a change in steel reinforcement standards in China, which is driving up demand for vanadium.
Vanadium’s importance to the energy sector is also growing rapidly with more than 10% of vanadium production used in energy storage where its substantial cost and performance benefits make it an alternative choice to lithium ion in several areas.
With roughly 350 employees on the payroll (as well as 350 on contract), the Maracas Menchen Mine produced a record 11,825 tonnes (26.1 million pounds) of V2O5 in 2020, a 12% increase over 2019.
The company recognized revenue of US$120 million from sales of 10,254 tonnes of V205 equivalent in 2020, marking an increase of 14% over 2019. The company posted a profit of US$6.8 million or $0.12 per share in 2020. It exited the year with a cash balance of US$79.1 million following the full repayment of the company’s outstanding credit facilities in February, 2021. Large is now debt-free.
The company has previously stated that it planned to increase annual production to 25,000 tonnes.