Largo Reports Q4 and Full Year 2024 Financial Results; Announces Operational Turnaround Plan and Additional Cost Optimization Initiatives

All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.

Q4, Full Year 2024 and Other Highlights

• Revenues of $24.3 million in Q4 2024 vs. $44.2 million in Q4 2023; Revenues per pound sold¹ of $5.70 in Q4 2024 vs. $7.69 in Q4 2023; In addition, the Company received $13.6 million related to the delivery of 1,200 tonnes as part of its vanadium inventory supply agreement
• Operating costs of $30.2 million in Q4 2024, 30% below Q4 2023; Adjusted cash operating costs excluding royalties per pound¹ of $3.05 in Q4 2024, 39% below Q4 2023, reflecting the success in cost reduction measures throughout 2024
• Adjusted EBITDA¹ improved by 195% in Q4 2024 to $2.3 million and mining operations adjusted EBITDA¹ improved by 27% to $4.5 million from $3.5 million in Q4 2023, despite the negative impact of the maintenance shutdown in Q4 2024
• Net loss of $13.0 million in Q4 2024, which included $2.4 million in non-recurring items vs. net loss of $13.3 million in Q4 2023, which included $5.9 million in non-recurring items; Basic loss per share of $0.19 in Q4 2024 vs. basic loss per share of $0.21 in Q4 2023
• Revenues of $124.9 million in 2024, 37% below 2023; Revenues per pound sold¹ of $6.40 in 2024 vs. $8.66 in 2023; In addition, the Company received $13.6 million related to the delivery of 1,200 tonnes as part of its vanadium inventory supply agreement
• Operating costs of $145.8 million in 2024, 17% below 2023; Adjusted cash operating costs excluding royalties per pound¹ of $4.05 in 2024, 22% lower than 2023, reflecting the company’s cost reduction efforts throughout 2024
• Adjusted EBITDA¹ was a loss of $2.1 million compared to positive adjusted EBITDA¹ of $11.9 million in 2023
• Net loss of $50.6 million in 2024, which included $18.7 million in non-recurring items vs. net loss of $32.4 million in 2023, which included $9.6 million in non-recurring items; Basic loss per share of $0.78 in 2024 vs. basic loss per share of $0.51 in 2023
• V₂O₅ production of 1,775 tonnes in Q4 2024 vs. 2,768 tonnes in Q4 2023; Annual V₂O₅ production of 9,264 tonnes in 2024 vs. 9,681 tonnes in 2023; Within the Company’s revised 2024 production guidance range of 9,000 – 11,000 tonnes
• Annual and Q4 2024 production was impacted by two kiln maintenance shutdowns during the year—one in Q1 2024 as per the Company’s regular schedule, and another advanced from Q1 2025 into Q4 2024 to mitigate potential production disruptions typically associated with the early-year rainy season
• Quarterly sales of 3,033 tonnes of V₂O₅ equivalent (inclusive of 8 tonnes of purchased material and 1,200 tonnes related to the Company’s vanadium inventory supply agreement) in Q4 2024, a 16% increase over the 2,605 tonnes in sold Q4 2023
• Annual V₂O₅ equivalent sales of 9,600 (inclusive of 415 tonnes of purchased material and 1,200 tonnes related to its vanadium inventory supply agreement) tonnes in 2024 vs. 10,396 tonnes in 2023; Within the Company’s annual 2024 sales guidance of 8,700 – 10,700 tonnes
• The Company produced 10,292 tonnes of ilmenite concentrate in Q4 2024 and 44,863 tonnes in 2024; Quarterly ilmenite concentrate sold of 10,570 tonnes in Q4 2024 and 42,916 tonnes sold in 2024

Vanadium Market Update

• Vanadium prices continued to face downward pressure in European and Chinese markets, primarily driven by reduced demand from the steel and infrastructure sectors and persistent oversupply from Chinese and Russian producers; In Q4 2024, the average benchmark price for V₂O₅ in Europe was $5.34 per pound, representing a 17% decrease compared to Q4 2023
• U.S. ferrovanadium pricing has experienced recent improvements, with prices rising 9% since the start of 2025, primarily driven by buying interest amid recent geopolitical developments and policy shifts impacting supply dynamics
• As of March 20, 2025, the average benchmark ferrovanadium price per pound of V was $15.25 in the U.S. and as of March 21, 2025, the average benchmark price per pound of V₂O₅ was $5.13 in Europe

TORONTO–(BUSINESS WIRE)–$LGO #greensteel–Largo Inc. (“Largo” or the “Company“) (TSX: LGO) (NASDAQ: LGO) today reported financial and operational results for the three and twelve months ended December 31, 2024. Amid challenging market conditions and declining vanadium prices, the Company has increased its focus on operational improvements, further cost reductions, and productivity enhancements at its Maracás Menchen Mine. The Company achieved annual vanadium pentoxide (“V₂O₅”) equivalent sales of 9,600 tonnes, with adjusted cash operating costs excluding royalties per pound¹ sold improving significantly to $3.04 in Q4 2024 down from $5.04 in Q4 2023.

Daniel Tellechea, Interim CEO and Director of Largo, stated: “We recognize the significant operational and market challenges Largo has encountered and are taking decisive steps to reposition the Company. While our cost reduction initiatives have already delivered measurable results—such as a 30% reduction in operating costs in Q4 2024 compared to the prior year—we continue to face production challenges and near-term financial pressures that require focused action.” He continued: “As part of our operational turnaround strategy, we’ve implemented a number of critical initiatives in recent months to further enhance productivity and strengthen cost controls. With the appointment of Gordon Babcock and Luis Rendón as Co-Chief Operating Officers in February 2025, we’ve further intensified our focus on execution and efficiency across the business. Under their leadership, our team is actively identifying and acting on additional opportunities to improve operational performance.”

He concluded: “We are also prioritizing efforts to reinforce our liquidity position and are pursuing a range of strategic and refinancing options to support ongoing operations. Driving a successful turnaround remains a company-wide priority, and we remain focused on taking the steps needed to help strengthen Largo’s operational and financial foundation for the future.”

Financial and Operating Results – Highlights

Key Highlights

• During 2024, the Company recognized revenues of $118.5 million (2023 – $198.6 million) from the sales of 8,400 tonnes of V₂O₅ equivalent (2023 – 10,396 tonnes) as well as revenues from ilmenite sales of $6.4 million (2023 – $nil).
• The Company recorded a net loss of $50.6 million in 2024 compared with a net loss of $32.4 million in 2023, largely driven by a 37% decrease in revenues. This was partially offset by a decrease in certain expenses, most notably a 17% decrease in operating costs, as well as a 29% decrease in professional consulting and management fees, a 54% decrease in general and administrative expenses and a 45% decrease in technology start-up costs.
• In 2024, the Company’s operating costs decreased by 17% to $30.2 million in 2024 compared to 43.2 million in 2023. The decrease in operating costs in 2024 was largely driven by a 34% decrease in direct mine and production costs. This decrease reflects the 19% decrease in vanadium sold in 2024, as well as the impact of the Company’s previously announced initiatives to reduce production costs and improve productivity. Further, shared mining and production costs up to the milling process are allocated between vanadium and ilmenite, which reduces the amount recognized in direct mine and production costs for vanadium.
• Adjusted cash operating costs excluding royalties per pound¹, which excludes the impact of inventory write-downs for produced products of $2.5 million for Q4 2024 (Q4 2023 – $nil), was $3.05 per lb, compared with $5.04 for Q4 2023. The decrease in unit costs seen in Q4 2024 compared with Q4 2023 is also largely due to the impact of the Company’s previously announced initiatives to reduce production costs and improve productivity, including reducing haulage distances, reducing the number of contractors and a comprehensive review of all contracts. The Company expects to continue seeing the benefits of these initiatives in its financial results going forward.
• For 2024, total professional, consulting, and management fees decreased by 29% compared to 2023, while other general and administrative expenses declined by 54%. These reductions reflect the Company’s continued emphasis on cost discipline, decreased activity and headcount at LCE following the initiation of the strategic review, and an expense recovery of $1.8 million primarily related to lower legal provisions. Additionally, technology start-up costs decreased by 45% in 2024 compared with 2023 primarily due to a decrease in activities at Largo Clean Energy Corp. (“LCE”) in 2024 as the installation of its battery project nears conclusion.
• Subsequent to Q4 2024, production in January 2025 was 392 tonnes of V₂O₅ equivalent with 503 tonnes produced in February 2025. Production in January and February 2025 was impacted by temporarily mining lower-grade ore zones according to the mine sequencing plan, reduced mining equipment availability, and operational adjustments following the kiln refractory replacement completed in Q4 2024. V₂O₅ equivalent sales were 687 tonnes in January 2025, with 551 tonnes sold in February 2025.
• Subsequent to Q4 2024, ilmenite concentrate production was 2,897 tonnes of in January 2025 and 1,477 tonnes in February 2025 with sales of 4,397 tonnes in January 2025 and 2,255 tonnes in February 2025.

The information provided within this release should be read in conjunction with Largo’s annual consolidated financial statements for the years ended December 31, 2024 and 2023 and its management’s discussion and analysis for the year ended December 31, 2024 which are available on our website at www.largoinc.com or on the Company’s respective profiles at www.sedarplus.com and www.sec.gov.

Operational Turnaround and Cost Optimization Strategy

In recent months, the Company has implemented several critical initiatives aimed at addressing operational challenges, enhancing productivity, and strengthening cost controls. Following the appointment of Gordon Babcock and Luis Rendón as Co-Chief Operating Officers in February 2025, Largo has further increased its focus on operational execution and efficiencies. Under their leadership, the team is actively identifying additional areas for improvement and implementing targeted enhancements to drive increased performance. Successfully executing the Company’s operational turnaround remains a top priority and will require the collective efforts of the entire team.

Key actions underway and priorities ahead include:

• The Company has initiated a turnaround program with its mining contractor, including a general operating fleet overhaul and equipment refurbishments, to resolve reliability and availability issues that impacted mining throughput rates in late 2024 and early 2025
  • Improvements in drilling efficiency and ore production rates have already been observed as of early March 2025
• Ongoing optimization of pit access and streamlining material handling processes to support more consistent throughput and operational stability
• Working with geotechnical experts to optimize mining practices, including improved blasting techniques, fleet utilization, and pit infrastructure upgrades
• Introducing mechanized and automated solutions in ore processing and tailings management, aimed at enhancing efficiency and reducing operational bottlenecks
• Optimizing crushing, milling and kiln operations as well as downstream processing plant efficiencies through improved processes, maintenance schedules and operational adjustments designed to increase productivity
• Strengthening cost management through rigorous monitoring and control processes to ensure operating expenses remain within targeted budget levels

The Company recognizes that while its ongoing operational turnaround is a critical step forward, additional measures are needed to fully address the Company’s broader financial headwinds. Market conditions, including a 21% decline in vanadium prices since December 31, 2023, and an elevated cost environment, have affected cash flows and financial forecasts. In response, the Company has taken decisive actions to strengthen its financial position, including ongoing cost reductions, operational efficiencies, and liquidity management. As a result of its cost reduction initiatives, the Company has recognized a 30% reduction in operating costs in Q4 2024 vs. Q4 2023. The Company is also actively working to improve its liquidity to support long-term goals, including exploring financing alternatives such as refinancing existing debt and securing additional capital through new debt facilities.

The Company will continue to monitor its progress and provide updates as needed. At this time, it will maintain its annual guidance ranges for 2025 and will reassess as operational improvements advance. Should any material changes to guidance be necessary, the Company will update the market accordingly.

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.

Cautionary Statement Regarding Forward-looking Information:

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and United States securities legislation. Forward‐looking information in this press release includes, but is not limited to, statements with respect to the timing and amount of estimated future production and sales; the future price of commodities; costs of future activities and operations, including, without limitation, the effect of inflation and exchange rates; the effect of unforeseen equipment maintenance or repairs on production; the ability to produce high purity V2O5 and V2O3 according to customer specifications; the extent of capital and operating expenditures; the ability of the Company to make improvements on its current short-term mine plan; and the impact of global delays and related price increases on the Company’s global supply chain and future sales of vanadium products.

The following are some of the assumptions upon which forward-looking information is based: that general business and economic conditions will not change in a material adverse manner; demand for, and stable or improving price of V2O5 and other vanadium products, ilmenite and titanium dioxide pigment; receipt of regulatory and governmental approvals, permits and renewals in a timely manner; that the Company will not experience any material accident, labour dispute or failure of plant or equipment or other material disruption in the Company’s operations at the Maracás Menchen Mine or relating to Largo Clean Energy, specially in respect of the installation and commissioning of the EGPE project; the availability of financing for operations and development; the availability of funding for future capital expenditures; the ability to replace current funding on terms satisfactory to the Company; the ability to mitigate the impact of heavy rainfall; the reliability of production, including, without limitation, access to massive ore, the Company’s ability to procure equipment, services and operating supplies in sufficient quantities and on a timely basis; that the estimates of the resources and reserves at the Maracás Menchen Mine are within reasonable bounds of accuracy (including with respect to size, grade and recovery and the operational and price assumptions on which such estimates are based); the accuracy of the Company’s mine plan at the Maracás Menchen Mine; that the Company’s current plans for ilmenite can be achieved; the Company’s ability to protect and develop its technology; the Company’s ability to maintain its IP; the competitiveness of the Company’s product in an evolving market; the Company’s ability to attract and retain skilled personnel and directors; the ability of management to execute strategic goals; that the Company will enter into agreements for the sales of vanadium, ilmenite and TiO2 products on favourable terms and for the sale of substantially all of its annual production capacity; and receipt of regulatory and governmental approvals, permits and renewals in a timely manner.

Forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”, although not all forward-looking statements include those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Forward-looking statements are not historical facts nor assurances of future performance but instead represent management’s expectations, estimates and projections regarding future events or circumstances. Forward-looking statements are based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on www.sedarplus.ca and available on www.sec.gov from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo’s annual and interim MD&A which also apply.

Trademarks are owned by Largo Inc.

Non-GAAP³ Measures

The Company uses certain non-GAAP measures in this press release, which are described in the following section. Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS, the Company’s GAAP, and might not be comparable to similar financial measures disclosed by other issuers. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that non-GAAP financial measures, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company.

Revenues Per Pound Sold

This press release refers to revenues per pound sold, V₂O₅ revenues per pound of V₂O₅ sold, V₂O₃ revenues per pound of V₂O₃ sold and FeV revenues per kg of FeV sold, which are non-GAAP financial measures that are used to provide investors with information about a key measure used by management to monitor performance of the Company.

These measures, along with cash operating costs, are considered to be key indicators of the Company’s ability to generate operating earnings and cash flow from its Maracás Menchen Mine and sales activities. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS.

The following table provides a reconciliation of revenues per pound sold, V₂O₅ revenues per pound of V₂O₅ sold, V₂O₃ revenues per pound of V₂O₃ sold and FeV revenues per kg of FeV sold to revenues and the revenue information presented in note 19 as per the 2024 annual consolidated financial statements.

Contacts

For further information, please contact:

Investor Relations

Alex Guthrie

Director, Investor Relations

+1.416.861.9778

[email protected]

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