On Thursday, H.C. Wainwright adjusted its price target for Largo Resources Ltd. (NASDAQ:) shares to $4.70, down from the previous $4.80, while maintaining a Buy rating on the company’s stock. The change follows Largo’s recent announcement of its second-quarter production results for 2024.
Largo Resources reported on Wednesday that it produced 2,689 tonnes of vanadium equivalent during the second quarter of 2024, marking a 2% year-over-year increase and a significant 56% improvement over the first quarter of 2024. The company successfully met its quarterly production guidance, which ranged between 2,400 to 2,900 tonnes.
Despite the positive production figures, Largo experienced a decline in ore grades, which dropped by 20% year-over-year to 0.69%. However, this decrease was counterbalanced by a 16% increase in the total ore mined, reaching 568,588 tonnes. The company had also completed planned kiln refractory maintenance in the first quarter, which contributed to improved production rates in the following quarter.
Further contributing to Largo’s performance was the ramp-up of its ilmenite concentrate production, which achieved 8,625 tonnes. The firm’s focus on operational efficiencies has been highlighted as a key factor in its ability to navigate the current environment, which is characterized by softer vanadium prices.
The analyst emphasized Largo’s commitment to operational efficiencies and its capability to meet production guidance as reasons for reiterating the Buy rating, despite the minor adjustment in the price target to $4.70 from $4.80.
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