Largo Resources Announces Record Full Year Production and Net Income of $316.0 Million in 2018
March 26, 2019
All financial figures are in Canadian dollars unless otherwise stated.
Q4 2018 Highlights
Net income of $108.0 million and basic earnings per share of $0.21 in Q4 2018
Revenues of $177.5 million in Q4 2018, a 262% increase over Q4 2017 and a 19% increase over Q3 2018
Cash provided before non-cash working capital items of $134.4 million in Q4 2018, an increase of $112.9 million over Q4 2017
Record production of 2,595 tonnes of V2O5 in Q4 2018
Full Year 2018 Highlights
Net income of $316.0 million and basic earnings per share of $0.61 in 2018
Revenues of $521.4 million in 2018, a 211% increase over 2017
Cash provided before non-cash working capital items of $403.2 million in 2018, an increase of $336.1 million over 2017
Cash operating costs excluding royalties of $4.41 (US$3.38) in 2018
$206.2 million in cash exiting 2018
Record production of 9,830 tonnes of V2O5 in 2018, exceeding midpoint guidance of 9,650 tonnes by 2% and a 6% increase over 2017
Four consecutive quarters of production growth in 2018
Expansion plan completion target of Q2 2019 with ramp up to follow in Q3 2019
TORONTO, March 26, 2019 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) is very pleased to report exceptional results for 2018, with net income of $316.0 million and basic earnings per share of $0.61 on record production of 9,830 tonnes of V2O5, representing the strongest year of earnings and production for the Company since the commencement of operations in 2014.
Mark Smith, Chief Executive Officer for Largo, stated: "2018 was an outstanding year for Largo as it delivered extremely robust financial results with net income of $316.0 million while also consecutively increasing quarterly production at the Maracás Menchen Mine allowing the Company to exceed its production guidance midpoint by 2%."
"We entered 2019 in a very solid financial position with a cash balance of $206.2 million and the Company currently has approximately US$29.1 million of outstanding debt with plans to eliminate this remaining debt balance in early June 2019. Largo continues to remain one of the lowest-cost producers of vanadium in the world which allows the Company to generate significant amounts of cash in the current vanadium pricing environment. We look forward to continuing the successes of 2018 and it is our goal to maximize organic value creation at the Company in 2019."
He concluded: "Largo's Board of Directors is examining alternatives for the return of capital to its shareholders in the form of share buybacks and/or dividends as well as using its excess cash and cash flows to finance the potential further expansion of its high-quality vanadium Maracás Menchen mine in Brazil. Acquisitions of other companies or mining projects are not part of Largo's current strategy."