Sequans Communications reports second quarter revenue flat at $8.1 million
Investing.com - H.C. Wainwright has reiterated its Buy rating and $3.70 price target on Largo Resources Ltd. (NASDAQ:LGO), representing a potential 203% upside from the current price of $1.22, following the company’s operational update released on June 25. According to InvestingPro data, the stock has declined over 29% year-to-date.
The company reported significant production improvements in May, with vanadium pentoxide (V2O5) output increasing 75% to 835 tonnes compared to 401 tonnes in April. Ilmenite concentrate production also showed strong growth, rising 65% to 3,025 tonnes from 1,833 tonnes in the previous month.
Largo attributed these production gains to improved access to disseminated ore from the Maracás Menchen Mine’s 200-level, supplemented by additional feed from the 110 and 120 levels near the bottom of the mine. The company noted that production drilling met its monthly targets during this period.
H.C. Wainwright views these results as a significant step forward in Largo’s operational turnaround efforts, which have focused on improving production rates for both V2O5 and ilmenite concentrate.
The research firm expects the operational benefits from improved mine access and drilling efficiencies to establish a strong foundation for production growth in the second half of 2025 and beyond.
In other recent news, Largo Resources reported first-quarter revenue of $28.2 million, resulting in a net loss of $9.2 million, or $0.14 per share. This represents a decline from the previous year, where the company achieved $42.2 million in revenue and a net loss of $13.0 million, or $0.20 per share. H.C. Wainwright adjusted its price target on Largo Resources to $3.70 from $3.90, while maintaining a Buy rating, citing the company’s ongoing cost-cutting measures as a positive step. Despite a 25% decrease in vanadium equivalent production, H.C. Wainwright highlighted an increase in overall mining activity and improved recovery rates. The firm anticipates that these operational improvements will enhance production levels in the future. Additionally, Largo’s annual revenue dropped to $124.9 million with a net loss of $50.6 million, compared to $198.7 million in revenue and a net loss of $32.4 million the previous year. The decrease in revenue was largely due to lower production and vanadium prices. H.C. Wainwright remains optimistic about Largo’s strategic cost reduction initiatives and their potential to improve the company’s financial health, maintaining a Buy rating and raising the price target back to $3.90.
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