[Ferro-Alloys.com] 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
• V ₂ O ₅ production of 1,775 tonnes in Q4 2024 vs. 2,768 tonnes in Q4 2023; Annual V ₂ O ₅ 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 V ₂ O ₅ 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 V ₂ O ₅ 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 V?O? 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 V?O? was $5.13 in Europe

 Largo Inc. (" Largo " or the " Company ") 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 (“ V?O? ”) 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 V₂O₅equivalent (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 V₂O₅equivalent 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. V₂O₅equivalent 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.

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