Largo Net Loss Widens to $27.5 Million in First Half
The vanadium producer reported a six-month net loss of $27.5 million, compared to $15 million for the same period in 2025.
Largo Inc. (LGO), a producer and supplier of vanadium products sourced from its Maracás Menchen Mine in Brazil, reported a net loss of $27.5 million for the six months ended June 30, 2026. The loss increased from the $15 million reported during the same period in 2025.
Revenue for the three months ended June 30, 2026, rose to $44 million, up from $26.1 million in the prior-year quarter. For the first half of the year, total revenues reached $71.5 million, compared with $54.4 million in the first half of 2025.
Despite the revenue growth, production costs rose. Materials, supplies, and other production costs for the three months ended June 30, 2026, were $48 million, compared to $30.1 million in the same quarter a year earlier. For the six-month period, these costs totaled $82.5 million, up from $72.5 million in 2025.
Other contributors to the six-month loss included a $7.4 million charge for finance costs and a $3 million net loss from its investment in associate. The company also recorded a $6.4 million deferred income tax expense for the first half of 2026, whereas it had recognized a $4.3 million deferred income tax benefit in the first half of 2025.
Cash flow from operating activities for the six months ended June 30, 2026, was a deficit of $16.8 million. This was influenced by a $14.8 million increase in inventory and a $5.5 million increase in prepaid expenses.
To support its liquidity, the company issued shares totaling $24.8 million during the period. Its cash and cash equivalents stood at $5.1 million as of June 30, 2026, down from $9.7 million at the end of 2025.
Total assets reached $346.2 million by the end of the second quarter, driven by an increase in mine properties, plant, and equipment to $201.6 million. Total liabilities rose to $206.8 million, up from $182.2 million on December 31, 2025.