TORONTO, April 22, 2019 /CNW/ - Largo Resources Ltd.
("Largo" or the "Company") (TSX: LGO)
(OTCQX: LGORF) announces that its Q1 2019 financial results
will be significantly impacted by the decline in the price of
vanadium pentoxide ("V2O5") since the
start of 2019 and the impact of the remeasurement of trade
receivables under the Glencore off-take agreement during the
quarter, as previously discussed in its fourth quarter and full
year 2018 production results press release on March 26, 2019 and in the Company's annual
filings.
Under the terms of the Company's off-take agreement, vanadium
prices are provisionally set at the time revenue is recognized
based upon market V2O5 prices. Revenue, and a
trade receivable, is recognized at the time of shipment. Changes in
the measurement of the trade receivable, which is remeasured once
the date that final selling prices will be determined has been set
by the Company's off-take partner, Glencore International AG, are
also recognized as a component of revenues in the period in which
the final price is determined. Variations can occur between the
price recorded on the date of revenue recognition and the actual
final price under the terms of the contract due to changes in
market V2O5 prices. The Company anticipates
that the remeasurement adjustment will range from CDN$55 million to CDN$60
million. Consequently, the Company anticipates that its net
income (loss) for the quarter will be in approximately breakeven
range.
The Company will release its first quarter 2019 financial
results on Tuesday, May 14, 2019
after the close of market trading and will host a conference call
the following day on Wednesday, May 15,
2019 at 12:00 p.m. EST.
Conference Call Details:
Date:
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Wednesday, May 15,
2019
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Time:
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12:00 p.m.
EST
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Dial-in
Number:
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Local /
International: +1 (416) 764-8688
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North American Toll
Free: (888) 390-0546
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Brazil Toll
Free: 08007621359
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Conference
ID:
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63330688
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Replay
Number:
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Local /
International: + 1 (416) 764-8677
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North American Toll
Free: (888) 390-0541
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Replay Passcode:
496092#
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Website:
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To view press
releases or any additional financial information, please visit our
Investor Relations section of the Largo Resources website
at: www.largoresources.com/investors
|
A playback recording will be available on the Company's website
for a period of 60-days following the conference call.
Vanadium Price
The most recent European Metal Bulletin price range quotation
for V2O5 posted as of April 19, 2019 was US$10.50-$11.50/lb.
About Largo Resources
Largo is a Toronto-based strategic mineral company focused
on the production of vanadium flake, high purity vanadium flake and
high purity vanadium powder at the Maracás Menchen
Mine located in Bahia State, Brazil. The Company's
common shares are principally listed on the Toronto Stock
Exchange under the symbol "LGO". For more information
on Largo, please visit our website
at www.largoresources.com.
Neither the Toronto Stock Exchange (nor its regulatory
service provider) accepts responsibility for the adequacy or
accuracy of this press release.
Cautionary Notes:
Metal Bulletin Pricing:
Readers are cautioned that Metal Bulletin pricing should be
considered only as indicative pricing for the global vanadium
market. Metal Bulletin pricing does not directly reflect the price
realized by the Company for a corresponding period.
Future Oriented Financial Information:
Any financial outlook or future oriented financial
information contained in this press release, as such term is
defined by applicable securities laws, has been approved by
management of Largo as of the date hereof and is provided for the
purpose of providing information about management's current
expectations and plans relating to the Company's Q1 2019 financial
results. Readers are cautioned that any such future oriented
financial information contained herein should not be used for
purposes other than those for which it is disclosed herein. The
Company and its management believe that the prospective financial
information as to the Company's anticipated Q1 2019 financial
results has been prepared on a reasonable basis, reflecting
management's best estimates and judgments. However, because this
information is highly subjective, it should not be relied on as
necessarily indicative of future results.
Forward-looking Information:
This press release contains forward-looking information under
Canadian securities legislation, some of which may be considered
"financial outlook" for the purposes of application Canadian
securities legislation ("forward-looking statements").
Forward‐looking information in this press release
includes, but is not limited to, statements with respect to
management's assessment of the cause of the remeasurementof the
trade receivables, the quantum of the remeasurement adjustment, and
the anticipated impact of the remeasurement adjustment on the
Company's net income (loss) for the period . 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". All information
contained in this news release, other than statements of current
and historical fact, is forward looking information.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the 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 SEDAR 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&As which also apply.
SOURCE Largo Resources Ltd.