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Investing.com -- Largo Inc (TSX:LGO) (NASDAQ:LGO) stock rose 4.4% following the company’s announcement of improved second-quarter vanadium production as its operational turnaround plan shows progress.
The Canadian vanadium producer reported quarterly production of 2,256 tonnes of vanadium pentoxide (V₂O₅) equivalent in Q2 2025, representing a significant improvement from the 1,297 tonnes produced in the first quarter, though still below the 2,689 tonnes produced in the same period last year. Sales for the quarter reached 1,807 tonnes, down slightly from 1,841 tonnes in Q2 2024.
"Our second quarter results reflect steady progress under the Company’s operational turnaround plan, with improved production volumes, higher recoveries, and enhanced mine access to support future production," said Daniel Tellechea, Interim CEO of Largo.
The company reported a global recovery rate of 84.9% for the quarter, showing steady improvement from 79.3% in April to 88.0% in June. Monthly production also demonstrated consistent growth, rising from 481 tonnes in April to 940 tonnes in June.
Total (EPA:TTEF) material mined increased by 32% YoY to 4.3 million tonnes, while the effective ore grade of 0.51% was 26% lower than the previous year but 24% higher than Q1 2025.
Largo also highlighted progress at its Storion Energy joint venture, which secured a supply agreement with TerraFlow Energy for vanadium electrolyte and stacks, as well as an electrolyte lease for a 48 MWh vanadium flow battery project in Texas. The lease, expected to commence in early 2027, leverages Largo Physical Vanadium’s leasing platform, which aims to reduce upfront capital costs for energy storage customers.
Despite the production improvements, the company acknowledged ongoing challenges, noting it is "addressing liquidity constraints stemming from lower production in the first quarter by working closely with suppliers and service providers" while continuing efforts to reduce costs and improve margins.
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