Gordon Lawson's questions to Largo (LGO) leadership • Q2 2024
Question
Gordon Lawson questioned the reasons for the decrease in V2O3 and ferrovanadium sales, the outlook for the second half, and what strategic options, such as care and maintenance, are being considered if the low-price environment persists.
Answer
CCO Paul Vollant attributed the Q2 sales decline to lower material availability following Q1 production, adding that high-purity products like V2O3 represent 20-30% of production and are tied to long-term contracts. CEO Daniel Tellechea stated that instead of considering care and maintenance, the company's primary strategy is to aggressively reduce cash operating costs through contract optimization, headcount reduction, and lowering input costs.