Largo Announces $10 Million Factoring Facility to Accelerate Receivables and Support Working Capital
Under the terms of the Facility, LUSA may sell eligible accounts receivable to the Factor for receipts of up to $10 million. The Factor will advance 85% of the invoice value, with commission rates ranging from 0.51% for invoices up to 30 days, to 1.37% for those up to 90 days, depending on customer payment terms. All factored invoices are on a non-recourse basis, with the Factor assuming credit risk. The Company is working with the Factor to establish similar receivables purchase facilities for Largo Inc. and Largo Commodities Trading Ltd., which is expected to increase the overall size of the Facility, subject to the inclusion of additional customers and credit approvals. The Facility has an initial term of two years, and the Factor may terminate it with 90 days' prior written notice or immediately in the event of default.
Daniel Tellechea, Interim CEO of Largo stated: "This Facility allows us to access liquidity more quickly by monetizing receivables tied to vanadium shipments, which can take between 30 and 90 days to convert to cash. Improving working capital efficiency is a necessary step as we work through our operational turnaround plan.' He continued : 'This Facility is expected to better align cash inflows with expenditures and ensures we have additional flexibility to support day-to-day operations while continuing our efforts to stabilize production and improve sales.'
CIRQUE Capital, Inc. acted as the Company's financial advisor and arranger in connection with the Facility and will receive certain custodial fees pursuant to the terms of the Facility.
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 tariffs; 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
22 minutes ago
- Globe and Mail
Contra Guys: It can be advantageous to cast a wide – and global
How much of your portfolio is invested overseas? This is an important question, especially in a year such as this one, when many European stock indexes are beating North American benchmarks, including the S&P/TSX Composite Index. Though many Canadians are overweight in Canadian stocks, we remain true to our contrary roots and try to avoid home-country bias. Investing in our home market can have certain tax advantages, and avoids foreign exchange rate volatility, but it can also reduce diversification, increase risk and impact returns. Ultimately, it is a big world out there, and it can be advantageous to cast a wide net. This is why we make a habit of investing in exchange-traded funds and equities that do business around the globe. One such ETF is the Global X MSCI Greece ETF GREK-A, which tracks the performance of the MSCI All Greece Select 25/50 Index. Here at Contra the Heard Investment Newsletter, we took a stake in GREK in October, 2015. Back then, the Greek financial crisis was rumbling into its seventh year and few investors wanted to touch the country. The government had just negotiated its third bailout package, introduced capital controls and then-Prime Minister Alexis Tsipras had won a surprise re-election. These actions tempered the surging value of credit default swaps and yields on government debt, but the nation remained on the cusp of default. Gross domestic product had fallen from US$352.1-billion in 2008 to US$194.6-billion in 2015, the unemployment rate was around 25 per cent and the banking sector was on life support, as roughly 47 per cent of all loans were non-performing. To illustrate just how bad the Hellenic banking crisis was, during the peak of the 2008-09 U.S. financial crisis, America's non-performing loans were only 7.5 per cent. Amid these economic depression-like conditions, the Greek stock market sank to one of the cheapest in the world and we took a stake. Not only was it inexpensive, but we figured the Troika (a decision-making group composed of the European Commission, European Central Bank and International Monetary Fund) would not let Greece fail. The Troika had already bailed out the country three times and, within the context of the European Union, Greece was too big to fail. Once the ETF was in our portfolio, we practised patience. While corporate turnarounds take time, national ones can take even longer. In 2023, I wrote about the Greek ETF for The Globe and Mail. At the time, I argued the ETF was still cheap and the country was performing well thanks to a series of reforms that had cut the national debt, streamlined regulations, reduced tax avoidance, digitized government processes and put the banks back on their feet. Earlier: Greece's stock market is on a tear - and this ETF tracking it is poised for even more gains Fast forward to the present day and the turnaround has turned into a growth story. Greece regained an investment-grade credit rating in late 2023, the country's debt-to-GDP ratio has fallen from more than 200 per cent to 153.6 per cent and it produced a budgetary surplus of 1.3 per cent of GDP in 2024. By contrast, the euro zone average was a deficit of 3.1 per cent. The Greek government surplus is even more impressive given that most European countries have been spending just over 2 per cent of GDP on defence while Greece spent approximately 3.1 per cent last year. This should serve Greece well as the North Atlantic Treaty Organization alliance moves toward a new 5-per-cent target. Aside from government finances, the rest of Greece's economy is doing well too. The unemployment rate has fallen to under 8 per cent, the household-debt-to-GDP ratio has fallen from nearly 67 per cent to 39 per cent since the financial crisis and the financial sector's non-performing loan balance now stands at under 4 per cent. The banks have done so well that they now account for more than half of the GREK ETF versus around a quarter a decade ago. Despite all the success, Greece is not without risk. The debt-to-GDP ratio is still high, the nation continues to score poorly on the Corruption Perception Index despite recent advances and it has continuing problems with its neighbours in Turkey. The legal system is also a congested and inefficient mess. According to the EU Justice Scoreboard, it takes Greek courts over 600 days to conclude civil and commercial cases. By contrast, Denmark takes less than 20 days and most European countries take around 100 days. This means it can take years for a trial to reach a conclusion – assuming there is no appeal. These timelines slow down business, drive away foreign investment and leave parties impacted by court cases in a state of limbo. At its core, Greece faces poor demographics as well. The nation's fertility rate is roughly 1.3 births per woman, it suffered years of net emigration during the financial crisis and the median age, currently in the mid-40s, is climbing fast. This means that Greece's population, which peaked over a decade ago, is expected to fall in the decades ahead. Moreover, Greek society will get materially older; this will leave fewer working-age people to support retirees, health care infrastructure and pensions. All in all, however, Greece has more going for it than against it, and the turnaround over the past decade has been a resounding success. The outlook is positive and the GREK ETF could rally much further. We recently trimmed our position in GREK for a 109.2-per-cent gain. Locking in this profit recouped our initial investment but leaves plenty of skin in the game to benefit from future price appreciation. Today, GREK sports a yield of over 4 per cent and blends strong momentum with low stock valuations. These are excellent characteristics, especially when coupled with the underlying economic conditions. Our plan is to let the ETF run, look for valuations to increase further and sell the rest of our stake in slices. Once it is sold entirely, we will continue to avoid home-country bias, deploy the winnings in a new overseas investment and, with any luck, repeat the success. Philip MacKellar is the general manager at Contra the Heard Investment Newsletter.
Globe and Mail
22 minutes ago
- Globe and Mail
American Express Declares Dividend on Series D Preferred Stock
The Board of Directors of American Express Company (NYSE: AXP) declared a quarterly dividend on the Company's 3.550% Fixed Rate Reset Noncumulative Preferred Shares, Series D, of $9,072.22 per share (which is equivalent to $9.07222 per related Depositary Share). The dividend is payable on September 15, 2025, to shareholders of record on September 1, 2025. ABOUT AMERICAN EXPRESS American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services and experiences that enrich lives and build business success. Founded in 1850 and headquartered in New York, American Express' brand is built on trust, security, and service, and a rich history of delivering innovation and Membership value for our customers. With over a hundred million merchant locations across our global network, we seek to provide the world's best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations. For more information about American Express, visit and
Globe and Mail
22 minutes ago
- Globe and Mail
Seven stocks with growing dividends that will benefit from rate cuts
What are we looking for? Canadian dividend-growing stocks that will benefit from future Bank of Canada interest rate cuts. The screen After holding its policy rate steady at 2.75 per cent in June, the Bank of Canada may be compelled to cut rates later this year. With inflation cooling and economic growth under threat from U.S. tariffs, some major banks such as Toronto-Dominion Bank (TD-T) are forecasting two rate cuts by year end. Falling rates tend to boost demand for income-generating assets, making this an opportune moment to revisit dividend stocks. Lower bond yields push investors toward equities that pay steady and growing dividends. Using FactSet's screening tool, I identified Canadian dividend growers with a proven track record by applying the following criteria: The seven companies that passed were ranked by their dividend yield. What we found CT Real Estate Investment Trust (CRT-UN-T), a Canadian REIT with a portfolio of essential properties that includes Canadian Tire, ranked first on our screen with a 6-per-cent dividend yield and a conservative payout ratio of 49.6 per cent. Its properties maintain a strong occupancy rate above 99 per cent, adding a layer of predictability to its robust cash flows. Recent financing moves, including a $200‑million debenture offering, help support further development initiatives. With long-term leases, minimal tenant turnover risk and rates poised to drop, CT REIT is well positioned as a dependable income name in a lower-rate environment. Investors should stay tuned for further updates on CT REIT's earnings call on Aug. 6. Cogeco Communications Inc. (CCA-T), a telecom and broadband provider that operates across Canada and the United States, offers a 5.6-per-cent dividend yield and low payout ratio of 43.4 per cent. Despite reporting a recent 2.7-per-cent decline in quarterly revenues year-over-year, the company delivered a 63-per-cent surge in free cash flow driven by lower capital expenditures and restructuring costs. That said, Cogeco's core business is cable, which is in a long-term decline. It's a steady, income-focused name that may appeal more to conservative investors in a falling-rate environment. The information in this article is not investment advice. The author assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained above. Arjun Deiva, CFA, is an MBA Candidate at the University of California, Berkeley, Haas School of Business.
