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National Post
19 hours ago
- Business
- National Post
Largo Reports Q2 2025 Financial Results; Delivering Cost Reductions and Efficiency Improvements Aiming to Offset Current Vanadium Price Weakness
Article content All amounts expressed are in U.S. dollars, denominated by '$'. Article content Revenues of $26.1 million ($25.4 million from vanadium sales and $0.7 million from ilmenite sales) in Q2 2025 vs. revenues of $28.6 million ($26.2 million from vanadium sales and $2.3 million from ilmenite sales) in Q2 2024 Revenues per lb sold 3 of V 2 O 5 equivalent of $6.39 in Q2 2025 vs. $6.46 in Q2 2024 Operating costs of $30.1 million in Q2 2025, a 17% improvement over $36.4 million in Q2 2024 Adjusted cash operating costs excluding royalties per pound sold 3 of $3.18 in Q2 2025, a 24% improvement over the $4.20 per lb sold in Q2 2024 Mining operations adjusted EBITDA 3 of $2.7 million in Q2 2025 vs. $0.9 million in Q2 2024 Net loss of $5.8 million (including $4.8 million in non-recurring items) in Q2 2025, a 60% improvement over the net loss of $14.5 million (including $8.5 million in non-recurring items) in Q2 2024 Basic loss per share of $0.09 in Q2 2025 vs. basic loss per share of $0.23 in Q2 2024 Production of 2,256 tonnes (5.0 million lbs 1) of V 2 O 5 in Q2 2025 vs. 2,689 tonnes in Q2 2024 V 2 O 5 equivalent sales of 1,807 tonnes (inclusive of 123 tonnes of purchased material) in Q2 2025 vs. 1,841 tonnes (inclusive of 128 tonnes of purchased material) sold in Q2 2024 The Company produced 8,149 tonnes of ilmenite concentrate in Q2 2025 vs. 8,625 tonnes in Q2 2024 and sold 6,024 tonnes vs. 12,261 tonnes Storion Energy LLC ('Storion') signs strategic supply agreement with TerraFlow Energy LLC to supply vanadium electrolyte and battery stacks; Storion secures electrolyte lease for 48 MWh flow battery project in Texas, supported by Largo Physical Vanadium Corp.'s unique electrolyte leasing model The Company entered into a secured loan by way of a promissory note with ARG International AG for a principal amount of $6 million (CAD$8.25 million) (the 'Note'); The Note is secured against the Company's equity interest in Largo Physical Vanadium Corp., in which the Company holds a 65.7% majority stake; The Note has a term of six months, an annualized interest rate of 15% and includes a 1% arrangement fee Published the Company's 7th annual sustainability report, Critical Vanadium Supply, highlighting the management of key risks, opportunities, impacts, and outcomes at the Maracás Menchen Mine vanadium-titanium operations in Brazil Article content Vanadium Market Update 2 Article content Vanadium prices remain under pressure in Europe and China, due to continued low demand in the steel and infrastructure sector and an oversupply from Chinese and Russian producers The monthly average U.S. ferrovanadium ('FeV') price has increased approximately 15% year-over-year to $14.70 per lb V in July 2025 and are holding approximately 7% higher than at the start of 2025; This continues to be supported by increased buying interest amid geopolitical tensions and policy shifts that have tightened supply dynamics The average benchmark price per pound of V 2 O 5 in Europe was $5.13 in Q2 2025, a 13% decrease from the average of $5.93 seen in Q2 2024 The average benchmark price per kg of FeV in Europe was $24.37 in Q2 2025, a 9% decrease from the average of $26.83 seen in Q2 2024 As of August 12, 2025, the average benchmark FeV price per lb V was $14.70 in the U.S. (or approximately $30.86 per kg FeV), and as of August 8, 2025, the average benchmark price per pound of V₂O₅ was $5.23 in Europe Article content On July 30, 2025, Executive Order 14323 was issued by the United States government, increasing tariffs on imports from Brazil from 10% to 50%, effective August 6, 2025 As a result, the Company is evaluating the potential commercial impact on its vanadium product sales to U.S. customers, including high-purity and ferrovanadium products We remain committed to supporting the U.S. aerospace, defense, and steel sectors that rely on our high-quality vanadium for essential applications Largo remains as one of the few global vanadium producers capable of meeting the quality and reliability standards required by these industries and the Company deeply values its longstanding partnerships with U.S. customers Commercial adjustments, including a reassessment of the Company's U.S. customer strategy, may be necessary if the current tariff regime remains in place Article content TORONTO — Largo Inc. (' Largo ' or the ' Company ') (TSX: LGO) (NASDAQ: LGO) today released financial results for the three months and six ended June 30, 2025. The Company reported quarterly vanadium pentoxide (' V 2 O 5 ') equivalent sales of 1,807 tonnes at an adjusted cash operating cost excluding royalties per pound 5 sold of $3.18. Article content Daniel Tellechea, Director and Interim CEO of Largo commented: 'In Q2 2025, we continued to make meaningful progress in realigning our operations and cost structure, delivering a 17% reduction in total operating costs year-over-year. These improvements reflect the impact of our disciplined cost containment measures and operational stabilization efforts at the Maracás Menchen Mine.' He continued: 'While vanadium market conditions remain subdued, we are taking proactive steps to strengthen our liquidity position. The $6 million secured loan provides near-term working capital support, and we continue to evaluate a range of options to enhance financial flexibility as we navigate this environment.' He concluded: 'With production steadily normalizing and additional cost efficiencies being realized, we remain focused on optimizing performance and positioning Largo to respond effectively to both market recovery and evolving trade dynamics in key jurisdictions.' Financial and Operating Results – Highlights (thousands of U.S. dollars, except as otherwise stated) Three months ended Six months ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenues 26,117 28,559 54,352 70,746 Operating costs (30,057) (36,379) (72,534) (86,086) Net loss (5,752) (14,483) (14,957) (27,489) Basic earnings (loss) per share (0.09) (0.23) (0.23) (0.43) Adjusted EBITDA 3 34 (833) (2,740) (3,258) Mining operations adjusted EBITDA 3 2,656 900 1,959 1,150 Cash provided before working capital items 2,151 2,732 (6,341) (456) Cash operating costs excl. royalties 3 ($/lb) 4.63 5.97 5.64 6.06 Adjusted cash operating costs excl. royalties 3 ($/lb) 3.18 4.20 3.55 4.88 Cash 5,616 35,811 5,616 35,811 Debt 95,073 84,727 95,073 84,727 Total mined – dry basis (tonnes) 4,261,626 3,216,930 8,194,868 6,460,422 Total ore mined (tonnes) 485,687 568,588 932,301 1,172,819 Effective grade 4 of ore mined (%) 0.51 0.69 0.46 0.61 V 2 O 5 equivalent produced (tonnes) 2,256 2,689 3,553 4,418 V 2 O 5 equivalent sales (tonnes) 1,807 1,841 3,873 4,606 Ilmenite concentrate produced (tonnes) 8,149 8,625 14,311 18,188 Key Highlights The Company reported a net loss of $5.8 million for Q2 2025, which represents a 60% improvement compared to the net loss of $14.5 million for Q2 2024. This is the lowest net loss the Company has recorded since Q1 2023 and is primarily a reduction in operating costs and expenses and offset by an increase in foreign exchange gain for the quarter. Operating costs improved to $30.1 million in Q2 2025 from $36.4 million in Q2 2024, which was primarily driven by a 26% reduction in direct mine and production costs, which also reflects a 9% decrease in vanadium sold and the positive impact of the Company's previously announced initiatives to reduce production costs and improve productivity at the Maracás Menchen Mine. The Company expects to continue seeing the benefits of these initiatives in its financial results going forward. Adjusted cash operating costs excluding royalties 3 reduced by 24% to $3.18 per lb sold in Q2 2025 over Q2 2024 ($4.20 per lb sold) primarily due to the positive results of the Company's operational turnaround plan and cost optimization initiatives previously announced, which includes the strengthening cost management through rigorous monitoring and control processes to ensure operating expenses remain within targeted budget levels. This is evidenced in the improved global recovery 5 rates seen in Q2 2025 (84.9%), an increase of 14.3% from the 74.3% achieved in Q2 2024 and 9.1% higher than the 77.8% achieved in Q1 2025. Professional, consulting and management fees of 1.8 million in Q2 2025 decreased from Q2 2024 by 34%, which was primarily attributable to the Company's focus on reducing costs, including reduced insurance costs at Corporate, as well as minimal activity at Largo Clean Energy Corp. ('LCE') during the quarter. Technology start-up costs in Q2 2025 also decreased from Q2 2024 by 66% to $0.2 million, which is primarily attributable to a decrease in activities at LCE. The foreign exchange gain in Q2 2025 of $4.7 million (Q2 2024 – loss of $4.1 million) is primarily attributable to a weakening of the U.S. dollar against the Brazilian real. The U.S dollar to Brazilian real exchange rate decreased by approximately 5% for Q2 2025 in comparison to Q1 2025. Subsequent to Q2 2025, production and sales were 856 tonnes and 852 tonnes of V 2 O 5 equivalent, respectively, in July 2025, with 4,309 tonnes of ilmenite concentrate being produced during this period and 1,903 dry tonnes of ilmenite being sold. The information provided within this release should be read in conjunction with Largo's unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024 and its management's discussion and analysis (' MD&A ') for the three and six months ended June 30, 2025 which are available on our website at or on the Company's respective profiles at and Article content About Largo Article content 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. Article content 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. Article content 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 Article content 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; the expected use of proceeds of the Facility and their expected impact on the Company's liquidity position and ability to improve its operations; the Company's transition from turnaround execution to steady-state operations; the Company's ability to meet its set targets for the year; and the extent of capital and operating expenditures. Article content 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 prices 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, especially 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; Article content 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. Article content 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 and available on 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. Article content Trademarks are owned by Largo Inc. Article content Non-GAAP Measures Article content The Company uses certain non-GAAP measures in its 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-IFRS financial measures, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Article content Revenues Per Pound Article content The Company's press release refers to revenues per pound sold, V 2 O 5 revenues per pound of V 2 O 5 sold, V 2 O 3 revenues per pound of V 2 O 3 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. Article content 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. Article content The following table provides a reconciliation of revenues per pound sold, V 2 O 5 revenues per pound of V 2 O 5 sold, V 2 O 3 revenues per pound of V 2 O 3 sold and FeV revenues per kg of FeV sold to revenues and the revenue information presented in note 23 as per the Q1 2025 unaudited condensed interim consolidated financial statements. Article content Three months ended Six months ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenues – V 2 O 5 produced i $ 8,151 $ 12,733 $ 20,284 $ 34,291 V 2 O 5 sold – produced (000s lb) 1,310 2,024 3,429 5,137 V 2 O 5 revenues per pound of V 2 O 5 sold – produced ($/lb) $ 6.22 $ 6.29 $ 5.92 $ 6.68 Revenues – V 2 O 5 purchased i $ — $ — $ — $ 988 V 2 O 5 sold – purchased (000s lb) — — — 176 V 2 O 5 revenues per pound of V 2 O 5 sold – purchased ($/lb) $ — $ — $ — $ 5.61 Revenues – V 2 O 5 i $ 8,151 $ 12,733 $ 20,284 $ 35,279 V 2 O 5 sold (000s lb) 1,310 2,024 3,429 5,313 V 2 O 5 revenues per pound of V 2 O 5 sold ($/lb) $ 6.22 $ 6.29 $ 5.92 $ 6.64 Revenues – V 2 O 3 produced i $ 1,435 $ 735 $ 2,731 $ 6,938 V 2 O 3 sold – produced (000s lb) 173 82 338 750 V 2 O 3 revenues per pound of V 2 O 3 sold – produced ($/lb) $ 8.29 $ 8.96 $ 8.08 $ 9.25 Revenues – FeV produced i $ 13,880 $ 10,910 $ 25,592 $ 23,159 FeV sold – produced (000s kg) 667 512 1,241 1,081 FeV revenues per kg of FeV sold – produced ($/kg) $ 20.81 $ 21.31 $ 20.62 $ 21.42 Revenues – FeV purchased i $ 1,978 $ 1,832 $ 4,334 $ 2,952 FeV sold – purchased (000s kg) 81 87 186 138 FeV revenues per kg of FeV sold – purchased ($/kg) $ 24.42 $ 21.06 $ 23.30 $ 21.39 Revenues – FeV i $ 15,858 $ 12,742 $ 29,926 $ 26,111 FeV sold (000s kg) 748 599 1,427 1,219 FeV revenues per kg of FeV sold ($/kg) $ 21.20 $ 21.27 $ 20.97 $ 21.42 Revenues 1 $ 25,444 $ 26,210 $ 52,941 $ 68,328 V 2 O 5 equivalent sold (000s lb) 3,984 4,058 8,539 10,154 Revenues per pound sold ($/lb) $ 6.39 $ 6.46 $ 6.20 $ 6.73 Article content As per note 19 of the Company's Q2 2025 unaudited condensed interim consolidated financial statements. Article content Cash Operating Costs Excluding Royalties Per Pound Article content The Company's press release refers to cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, which are non-GAAP ratios based on cash operating costs, cash operating costs excluding royalties and adjusted cash operating costs excluding royalties, which are non-GAAP financial measures, in order to provide investors with information about a key measure used by management to monitor performance. This information is used to assess how well the Maracás Menchen Mine is performing compared to its plan and prior periods, and to also to assess its overall effectiveness and efficiency. Article content Cash operating costs includes mine site operating costs such as mining costs, plant and maintenance costs, sustainability costs, mine and plant administration costs, royalties and sales, general and administrative costs (all for the Mine properties segment), but excludes depreciation and amortization, share-based payments, foreign exchange gains or losses, commissions, reclamation, capital expenditures and exploration and evaluation costs. Operating costs not attributable to the Mine properties segment are also excluded, including conversion costs, product acquisition costs, distribution costs and inventory write-downs. Article content Cash operating costs excluding royalties is calculated as cash operating costs less royalties. Article content Adjusted cash operating costs excluding royalties is calculated as cash operating costs excluding royalties less write-downs of produced products. Article content Cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound are obtained by dividing cash operating costs, cash operating costs excluding royalties and adjusted cash operating costs excluding royalties, respectively, by the pounds of vanadium equivalent sold that were produced by the Maracás Menchen Mine. Article content Cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, along with revenues, are considered to be key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine. 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. Article content The following table provides a reconciliation of cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound for the Maracás Menchen Mine to operating costs as per the Q1 2025 unaudited condensed interim consolidated financial statements. Article content Three months ended Six months ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Operating costs i $ 30,057 $ 36,379 $ 72,534 $ 86,086 Professional, consulting and management fees ii 441 476 976 938 Other general and administrative expenses iii 210 306 389 585 Less: ilmenite costs and write-down i (1,876 ) (1,042 ) (4,096 ) (1,089 ) Less: conversion costs i (2,545 ) (2,018 ) (5,536 ) (4,041 ) Less: product acquisition costs i (1,978 ) (1,310 ) (4,335 ) (3,360 ) Less: distribution costs i (1,957 ) (1,724 ) (3,534 ) (3,542 ) Less: inventory write-down iv 10 (912 ) 11 (466 ) Less: depreciation and amortization expense i (4,086 ) (5,396 ) (9,548 ) (13,473 ) Cash operating costs $ 18,276 $ 24,357 $ 46,861 $ 61,236 Less: royalties i (1,097 ) (1,814 ) (2,169 ) (3,487 ) Cash operating costs excluding royalties $ 17,179 $ 22,543 $ 44,692 $ 57,749 Less: vanadium inventory write-down v (5,371 ) (6,688 ) (16,577 ) (11,214 ) Adjusted cash operating costs excluding royalties 11,808 15,855 $ 28,115 $ 46,535 Produced V 2 O 5 sold (000s lb) 3,713 3,776 7,919 9,529 Cash operating costs per pound ($/lb) $ 4.92 $ 6.45 $ 5.92 $ 6.43 Cash operating costs excluding royalties per pound ($/lb) $ 4.63 $ 5.97 $ 5.64 $ 6.06 Adjusted cash operating costs excluding royalties per pound ($/lb) $ 3.18 $ 4.20 $ 3.55 $ 4.88 Article content As per note 20 of the Company's Q2 2025 unaudited condensed interim consolidated financial statements. As per the Mine properties segment in note 16 of the Company's Q2 2025 unaudited condensed interim consolidated financial statements. As per the Mine properties segment in note 16 less the increase in legal provisions of $0.2 million (for the six months ended June 30, 2025) as noted in the 'other general and administrative expenses' of the Company's Q2 2025 management's discussion and analysis. As per note 5 of the Company's Q2 2025 unaudited condensed interim consolidated financial statements for ilmenite finished products and warehouse supplies, and including a write-down of vanadium purchased products of $nil (Q2 2025) and $0.01 million (for the six months ended June 30, 2025) (write-down reversal of $0.3 million in Q2 2024 and $nil for the six months ended June 30, 2024). As per note 5 of the Company's Q2 2025 unaudited condensed interim consolidated financial statements for vanadium finished products, excluding amounts in note 4 above for vanadium purchased products. Article content EBITDA and Adjusted EBITDA Article content The Company's press release refers to earnings before interest, tax, depreciation and amortization, or 'EBITDA', and adjusted EBITDA, which are non-GAAP financial measures, in order to provide investors with information about key measures used by management to monitor performance. EBITDA is used as an indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures. Article content Adjusted EBITDA removes the effect of inventory write-downs, impairment charges (including write-downs of vanadium assets), insurance proceeds received, movements in legal provisions, non-recurring employee settlements and other expense adjustments that are considered to be non-recurring for the Company. The Company believes that by excluding these amounts, which are not indicative of the performance of the core business and do not necessarily reflect the underlying operating results for the periods presented, it will assist analysts, investors and other stakeholders of the Company in better understanding the Company's ability to generate liquidity from its core business activities. Article content EBITDA and adjusted EBITDA are intended to provide additional information to analysts, investors and other stakeholders of the Company and do not have any standardized definition under IFRS. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures exclude the impact of depreciation, costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operating activities as determined under IFRS. Other companies may calculate EBITDA and adjusted EBITDA differently. Article content The following table provides a reconciliation of EBITDA and adjusted EBITDA to net income (loss) as per the Q1 2025 unaudited condensed interim consolidated financial statements. Article content Three months ended Six months ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net loss $ (5,752 ) $ (14,483 ) $ (14,957 ) $ (27,489 ) Foreign exchange gain (loss) (4,745 ) 4,132 (10,536 ) 5,043 Share-based payments 102 118 212 408 Finance costs 2,951 2,805 5,102 4,617 Interest income (56 ) (870 ) (177 ) (1,176 ) Income tax expense (recovery) 18 (2,890 ) 68 (2,868 ) Deferred income tax recovery (1,605 ) (4,342 ) (4,271 ) (9,671 ) Depreciation i 4,307 6,168 9,990 14,892 EBITDA $ (4,780 ) $ (9,362 ) $ (14,569 ) $ (16,244 ) Inventory write-down ii 5,011 7,600 16,591 11,680 Write-down of vanadium assets 46 329 313 215 Movement in legal provisions iii (243 ) 481 104 972 Gain on disposal of interest in subsidiary — — (5,179 ) — Adjusted EBITDA $ 34 $ (833 ) $ (2,740 ) $ (3,258 ) Less: Clean Energy Adjusted EBITDA 2,455 1,527 4,233 4,011 Less: LPV Adjusted EBITDA 167 206 466 397 Mining Operations Adjusted EBITDA $ 2,656 $ 900 $ 1,959 $ 1,150 Article content As per the consolidated statements of cash flows of the Company's Q2 2025 unaudited condensed interim consolidated financial statements. As per note 5 of the Company's Q2 2025 unaudited condensed interim consolidated financial statements. As per the 'non-recurring items' section on page 7 of the Company's Q2 2025 management's discussion and analysis. Article content Conversion of tonnes to pounds, 1 tonne = 2,204.62 pounds or lbs. Article content 2 Article content Fastmarkets Metal Bulletin. Article content The cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, Adjusted EBITDA, Mining operations adjusted EBITDA, revenues per pound per pound sold are reported on a non-GAAP basis. Refer to the 'Non-GAAP Measures' section of this press release. Revenues per pound sold are calculated based on the quantity of V2O5 sold during the stated period. Article content Global recovery is the product of crushing recovery, milling recovery, kiln recovery, leaching recovery and chemical plant recovery. Article content Article content Article content Article content Article content Contacts Article content For further information, please contact: Article content
Yahoo
7 days ago
- Business
- Yahoo
Australia's exchange operator flags higher costs from ASIC probe, shares slump
(Reuters) -ASX, the operator of Australia's stock exchange, warned on Thursday of elevated operating costs in fiscal 2026 tied to an inquiry by the domestic corporate regulator, sending its shares tumbling to a four-month low. The stock dropped as much as 11.1% to A$62.5, marking its biggest intraday loss since June 2023. Earlier in the session, shares hit their lowest level since early April. The company expects to incur additional expenses of A$25 million ($16.25 million) to A$35 million in fiscal 2026, following a probe launched in June by the Australian Securities and Investments Commission (ASIC). The regulator is examining ASX's ability to maintain a secure, stable, and resilient market infrastructure. ASX had previously forecast fiscal 2026 expense growth of 8%–11%, with operating costs projected to rise by 4%–7%. The newly disclosed costs add further pressure to the outlook, compounding planned increases related to technology upgrades, software licensing, and expenses under its Accelerate transformation programme. "We remain committed to our five-year strategy and are focused on our technology modernisation and uplifting operational risk management and resilience," Chief Executive Officer Helen Lofthouse said. ASX is currently anticipating operating expense growth to come in at the mid-point of its 4%-7% estimate range for 2025. In a note from Wednesday, analysts at UBS flagged earnings risks with ASIC's review potentially impacting ASX's fiscal 2026 cost outlook. It has a "sell" recommendation on the stock. The Thursday update came just a day after the exchange operator was involved in a glaring mix-up, mistakenly tagging one of Australia's leading internet providers in a takeover announcement unrelated to the company. ($1 = 1.5389 Australian dollars)
BBC News
06-08-2025
- Business
- BBC News
Pub named 'best in Derbyshire' struggles with rising costs
The landlady of a pub named the best in Derbyshire by a national newspaper has called on the government to provide more support to small rural venues dealing with rising operating Dewhurst, who runs The Barley Mow in Bonsall, Derbyshire, said their profit per pint of beer had dropped from 84p in 2009 to 12p British Beer and Pub Association (BBPA) estimates one pub per day is closing in Britain in 2025."There were 13 pubs in the village once. There's only two left now. I'd be devastated to close it really," said Ms Dewhurst. The Barley Mow was recently named the best pub in Derbyshire by The Telegraph and has received international attention for its annual hen-racing Dewhurst, who has been in charge for nearly 17 years, said it was more of a "community centre"."We've had people move to the village because of their love for the pub," she said."It's a small space. It's like stepping back in time."I make people sit with people they don't know. An hour later they're chatting, and another hour later they're dancing together. It's great for that."Colette said VAT and rising energy costs had had the biggest impact, despite her pub being said: "Since Covid, we've had to do nearly all the work. We can't afford a chef and a cleaner. We've gone from doing maybe 65 hours per week to sometimes doing 90 hours per week in order to keep the costs down. "We were paying probably collectively over a month £600 for energy before Covid and now it's £2,500." According to the BBPA the number of pubs in the UK has steadily decreased every year since 2000, with about15,000 pubs closing in that warned in April that changes announced in the Budget, including increasing the National Minimum and Living Wage, would mean pubs would have to charge an extra 21p per pint to maintain "punishingly slim" Dewhurst fears without extra support from the government, more pubs like hers will fold."Specifically for smaller free houses in rural situations they could look at an energy cap. They could look at reducing the VAT," she said."The last thing you want is for people to think you're fleecing them. Really, we don't do it for money. It's a labour of love in a way."It's part of the fabric of England. There's a saying that the pubs are the beating heart of England and it's true. It'd be really sad to see them all close."When you see how many are closing you feel, 'I might be the last landlady here'. 'Eye-watering' costs BBPA chief executive, Emma McClarkin, said: "We know pubs are doing a brisk trade, but for many it's impossible to turn a profit because most of what goes into the till goes straight back out in bills and taxes."We know the government recognises the importance of pubs and it's not too late to turn this around."We're calling on the government to deliver their promised meaningful business rates reform, mitigate eye-watering new employment and EPR [Extended Producer Responsibility] costs, and cut beer duty."A government spokesperson said: "We know the vital importance of pubs to local communities and the wider economy, which is why we are protecting pavement pints and al fresco dining, have cut alcohol duty on draught pints in the pub, and are protecting and extending business rates relief which would have ended without this government's action. "The tax decisions we took at the Budget last year mean that we have been able to deliver on the priorities of the British people, from investing in the NHS to cutting waiting lists and putting more money in their pockets with a wage boost for millions as we deliver on the Plan for Change."
Irish Times
15-07-2025
- Business
- Irish Times
Planned 9.8% increase in non-domestic water charges undermining viability of hotels, says IHF
Non-domestic water charges are set to be increased by 9.8 per cent in October following a decision by the Commission for the Regulation of Utilities (CRU), but hoteliers have expressed 'serious concerns' over the increase. Michael Magner, the IHF president, described the increase as 'yet another example of the relentless increases in operating costs that are eroding Irish competitiveness and undermining the viability of businesses.' The new water and wastewater tariff rates will be effective from October 1st. The move is to 'ensure the recovery of costs of water services' and would aide 'the reliability, efficiency and sustainability of water services,' the CRU said. The decision to increase all charges by the same percentage value was made in the hopes of 'retaining the equity of cost allocation in the 2024 tariffs for all customer types' the CRU said in the decision published on Monday. READ MORE The IHF president said that, over the past two years, the average 70-bedroom hotel in Ireland will have seen an increase of over 40 per cent in its water tariffs. He said the increase is 'unsustainable given the exceptionally challenging environment' for Irish hotels. 'As a big consumer of water services, the hospitality sector is disproportionately impacted by increases in water tariffs, which businesses are unable to absorb.' Mr Magner said the 'cumulative impact of these and other cost increases now poses a serious threat to the viability of many businesses through our wider tourism and hospitality sector.' He said the sector is concerned about potential future annual increases over the next four years and the 'ongoing transfer of unjustifiable costs arising from inefficiencies in the delivery of water services in Ireland' while calling for a 'fairer funding model' to sustain water services and cost competitiveness for businesses.' Uisce Eireann had originally suggested a 13 per cent increase in charges to the CRU, which decides the rate, alongside two alternative increases of 1.7 per cent – in line with the harmonised index of consumer prices for 2025 – and 6.9 per cent – the average growth in Uisce Eireann's approved allowed revenues from 2020 to 2024. During a consultation period on the decision, the CRU received 22 submissions which opposed any increase but it noted that while 'affordability and competitiveness are significant issues for non-domestic customers and the Irish economy', Uisce Eireann is required to run in a 'commercially viable manner'. The regulator noted the increase was 'similar, or lower than' increases in similar percentage increases in UK water utilities. In light of the submissions received, the CRU said the 9.8 per cent increase was 'the most balanced approach'. 'The CRU is aware of the impact of bill increases for certain non-domestic customers and has engaged with Uisce Éireann to ensure that there are measures in place when engaging with customers with financial difficulties.'
Globe and Mail
10-07-2025
- Business
- Globe and Mail
Can Intel Be Leaner & More Agile by Laying Off 529 Employees?
Intel Corporation INTC is reportedly laying off 529 employees across four locations in Oregon to minimize operating costs and reduce organizational complexity to better serve customers. These include software and hardware engineers, developers, managers, scientists and other domain specialists with backgrounds in artificial intelligence (AI) and cloud computing. A lion's share of the job cuts is taking place at Intel's Jones Farm Campus, which focuses on chip design work as well as research and development (R&D). The other facilities that are witnessing job cuts include the Aloha, Hawthorne Farm and Ronler Acres campuses, which support semiconductor research and manufacturing. Oregon boasts the largest number of Intel's facilities and workforce, with about 22,000 employees. By trimming its huge employee base, the company aims to eliminate unnecessary bureaucracy levels and become leaner and more agile, regaining its competitive edge. This follows a similar exercise a few days back, when the company decided to wind up its automotive architecture business as part of a broader restructuring process to trim operating costs and boost liquidity. Intel expects to free up significant resources by winding down this peripheral unit, thereby making more money available for R&D funding in the core PC and data center segments. Intel has been investing in expanding its manufacturing capacity to accelerate its IDM 2.0 (Integrated Device Manufacturing) strategy. Interim management is committed to keeping the core strategy unchanged despite efforts to drive operational efficiency and agility. The company is emphasizing the diligent execution of operational goals to establish itself as a leading foundry. It is focusing on simplifying parts of its portfolio to unlock efficiencies and create value. Other Tech Firms Laying Off Employees Microsoft Corporation MSFT has laid off 6,000-7,000 employees as part of a broader restructuring strategy focused on boosting AI innovation and reducing organizational layers. The job cuts are purportedly aimed at reducing redundancy, particularly in middle management and support functions. Microsoft is reallocating the freed-up resources toward high-growth AI areas like Azure AI, Copilot and custom silicon. In addition to some non-core roles within the Azure cloud, Microsoft laid off employees from its legacy hardware operations and gaming divisions. Meta Platforms, Inc. META has conducted multiple smaller rounds of layoffs this year, affecting around 3,600 employees across departments. A majority of the job cuts occurred in Meta's metaverse division, Reality Labs, as the company trimmed roles in hardware, AR/VR and software development that were deemed non-core. In addition, Meta eliminated various non-essential jobs while prioritizing AI-powered discovery businesses. INTC's Price Performance, Valuation and Estimates Intel shares have declined 30% over the past year against the industry 's growth of 23.5%. Going by the price/sales ratio, the company's shares currently trade at 1.97 forward sales, lower than 14.95 for the industry. Earnings estimates for 2025 have decreased 6.7% to 28 cents per share over the past 60 days, while the same for 2026 have declined 6.3% to 74 cents. Intel stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Higher. Faster. Sooner. Buy These Stocks Now A small number of stocks are primed for a breakout, and you have a chance to get in before they take off. At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We've combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month. You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days. Download the report free now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report
