[Ferro-Alloys.com] Largo Reports Q1 2025 Production and Sales Results; Provides Update on Operational Turnaround Plans

Q1 2025 Highlights

• V₂O₅ production of 1,297 tonnes (2.8 million lbs¹) in Q1 2025 vs. 1,729 tonnes produced in Q1 2024
• Total waste moved (dry basis) was 3.5 million tonnes in Q1 2025, a 32% increase over Q1 2024 and total mined material (dry basis) was 3.9 million tonnes in Q1 2025, a 21% increase over Q1 2024 as the Company prioritizes the optimization of pit access, including critical stripping activities and mine pushbacks as part of its previously announced operational turnaround plans
• V₂O₅ equivalent sales of 2,046 tonnes (inclusive of 154 tonnes of purchased material) in Q1 2025 vs. 2,765 equivalent tonnes sold (inclusive of 156 tonnes of purchased material) in Q1 2024
• Ilmenite concentrate production of 6,162 tonnes in Q1 2025 vs. 9,563 tonnes Q1 2024 with sales totaling 8,647 tonnes vs. 513 tonnes in Q1 2024
• The Company has revised its 2025 V₂O₅ equivalent production and sales guidance ranges to 8,500 - 10,500 tonnes from 9,500 - 11,500 tonnes and 6,500 – 8,500 tonnes from 7,500 – 9,500 tonnes, respectively; Cash operating cost excluding royalties² guidance maintained; Ilmenite production and sales guidance maintained

Largo Inc.  today announces quarterly production of 1,297 tonnes of vanadium pentoxide (“V₂O₅”) equivalent and sales of 2,046 tonnes V₂O₅ equivalent in Q1 2025.

Daniel Tellechea, Interim CEO of Largo stated: "Production in the first quarter was lower than anticipated, primarily due to impacts from mining lower-grade ore zones, reduced equipment availability, and operational adjustments related to the kiln refractory replacement completed in Q4 2024. We anticipate continued short-term impacts to production as we prioritize essential mine pushbacks and stripping activities aimed at accessing higher-grade ore later this year as part of the Company’s previously announced operational turnaround plans. As a result of these impacts, the timing of sales deliveries, which depend on prior-quarter production output—will be affected in Q2 2025 and in the second half of 2025. Accordingly, we have updated our annual production and sales guidance to reflect these short-term operational impacts. Encouragingly, we are seeing improved progress recently, with total mined material and total waste moved increasing 21% and 32% year-over-year, respectively. Successfully executing this turnaround remains our top priority, and we are committed as a team to delivering improved performance going forward.”

Maracás Menchen Mine Operational and Sales Results

Q1 2025 Production and Sales Overview

• V₂O₅production totaled 1,297 tonnes in Q1 2025, with monthly production of 392 tonnes in January, 503 tonnes in February, and 402 tonnes in March. Production was impacted by the mining of lower-grade ore zones, reduced equipment availability, and operational adjustments following the kiln refractory replacement completed in Q4 2024. Despite these impacts, global recoveries⁴averaged 77.8% in Q1 2025, representing a notable improvement over 70.5% in Q1 2024 and remaining consistent with the 77.9% achieved in Q4 2024.
• As part of its operational turnaround plans, the Company ramped up total mined material by 21% year-over-year to 3.93 million tonnes (dry basis), while mined ore totaled 446,614 tonnes at an effective V₂O₅grade³of 0.41%, compared to 604,231 tonnes at 0.53% in Q1 2024. Total wasted moved increased by 32% in Q1 2025 to 3.5 million tonnes, as compared to 2.6 million tonnes in Q1 2024.
• V₂O₅equivalent sales totaled 2,046 tonnes in Q1 2025, including 154 tonnes of purchased material. While this represents a 26% decrease from the 2,765 tonnes sold in Q1 2024, it exceeded the upper end of the Company’s quarterly guidance.

Revised 2025 V₂O₅ Equivalent Production and Sales Guidance

In Q1 2025, the Company continued executing its previously announced operational turnaround plans (see press release dated March 28, 2025). Over the coming months, the Company will prioritize critical mine stripping activities and pushbacks at the Maracás Menchen Mine, essential steps for accessing higher-grade ore zones required for steady production in the second half of the year. As a result of these measures, short-term production will be temporarily impacted, subsequently affecting the timing of sales commitments and deliveries in Q2 2025 as well as in the second half of 2025. The Company has updated its annual guidance for V₂O₅ equivalent production and sales to reflect these anticipated impacts, as detailed in the table below. The Company has maintained its annual cost guidance range for 2025 but does expect unit costs above annual guidance in Q2 2025. Annual production and sales guidance for ilmenite has been maintained for 2025.

Cash Operating Costs Excluding Royalties Guidance – Maintained

Ilmenite Concentrate Production and Sales Guidance – Maintained

Liquidity and Financial Position

The Company continues to be actively engaged in negotiations for new working capital facilities and the refinancing of its long-term debt facilities to support its current and future financial position. These efforts are ongoing with the goal of improving liquidity and capital resources amid current vanadium market conditions and near-term operational and sales challenges. In parallel, the Company continues to assess additional measures to manage its costs and optimize cash flows as it works to stabilize operations as outlined in its operational turnaround plans. For further information, see disclosure under the heading “Liquidity and Capital Resources” in the Company’s Management’s Discussion and Analysis for the Year Ended December 31, 2024. The Company will provide further updates as appropriate.

About Largo

Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in Brazil. As one of the world’s largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The Company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.

Largo is also strategically invested in the long-duration energy storage sector through its 50% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S. Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com

• [Editor:tianyawei]