Six Flags stock rises after appointing John Reilly as new CEO
TORONTO - Vanadium producer Largo Inc. (TSX:LGO) (NASDAQ:LGO) has appointed J. Alberto Arias and Daniel Tellechea as co-Chief Executive Officers, effective immediately, according to a company press release. The company's stock currently trades at $1.10, down nearly 60% from its 52-week high of $2.70.
Arias, who has been Largo's Non-Executive Chairman since 2019, will transition to Executive Chairman. The company also announced that Diogo Silva will become Chief Financial Officer on December 5, 2025, replacing David Harris, who is stepping down after more than 10 years with the company.
The leadership changes come as Largo focuses on reducing costs, diversifying revenues, and refinancing its debt. The company recently completed a financing on October 22, 2025. According to InvestingPro data, Largo carries a total debt of $95.07 million with a concerning current ratio of 0.51, indicating short-term obligations exceed liquid assets. The company's financial health score is rated as WEAK by InvestingPro analysts, who do not anticipate profitability this year.
Arias, who has over 30 years of industry experience, is the founder and portfolio manager of Arias Resource Capital Management. Investment funds managed by Arias Resource Capital, together with Arias personally, represent approximately 37.9% of Largo's basic shares outstanding following the recent financing. With a market capitalization of just $91.58 million, Largo has seen its stock decline by 46.34% over the past year.
Silva, who has been with Largo for 14 years, currently serves as Finance Director of the company's subsidiary, Largo Vanádio de Maracás S.A. The company noted that Silva has been instrumental in negotiations with lenders to defer debt principal payments until September 2026. These negotiations are critical as InvestingPro data shows Largo is quickly burning through cash, with negative free cash flow of $34.19 million in the last twelve months.
Largo operates the Maracás Menchen Mine in Brazil and describes itself as one of the world's largest primary vanadium producers. The company supplies vanadium and ilmenite products to industries including steel, aerospace, defense, chemical, and energy storage sectors.
The company also holds a 50% ownership stake in Storion Energy, a joint venture focused on vanadium flow battery energy storage solutions in the U.S.
In other recent news, Largo Inc. has successfully raised $17.4 million through a registered direct offering of 14,262,309 common shares at $1.22 per share. Additionally, the company secured $23.4 million to address its working capital needs and meet equity contribution requirements for a debt rollover agreement with its senior lenders. This financing effort includes both a registered direct offering and a concurrent private placement, comprising common shares and warrants. The warrants are exercisable immediately at $1.22 per share and will expire in five years. Furthermore, Largo has reached an agreement with Brazilian banks to defer $84.2 million in principal debt repayments for its subsidiary, Largo Vanádio de Maracás S.A. The principal repayments have been pushed to March 18, 2026, with a possible extension to September 18, 2026, contingent on raising C$30 million by November 17, 2025. Despite facing production challenges, Largo reported sustained production levels in the third quarter of 2025, producing 931 tonnes of vanadium pentoxide in August and 856 tonnes in July. The company also produced 4,141 tonnes of ilmenite concentrate in July and 3,298 tonnes in August. These developments reflect Largo's ongoing efforts to navigate financial and operational hurdles.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.