Largo Inc. press release

Largo Reports Fourth Quarter and Full Year 2025 Financial Results Reflecting the Impact of U.S. Tariffs on Q4 2025 Sales; Stronger Operating Momentum with Further Positive Copper-Platinum Group Metals Flotation Test Results and Benefit from Recent U.S. Tariff Relief Entering 2026

2026-04-01

TSX - Toronto Stock Exchange · Vanadium · Titanium · Iron · Platinum · Palladium · Gold · Tungsten · Molybdenum · Canada · Corporate Finance

All amounts expressed are in U.S. dollars, denoted by "$".

Toronto, Ontario--(Newsfile Corp. - April 1, 2026) - Largo Inc.(TSX: LGO) (NASDAQ: LGO) ("Largo" or the "Company") today announces financial and operating results for the three months and year ended December 31, 2025.

Mr. Daniel Tellechea, Co-Chief Executive Officer of Largo, stated: "2025 was a year of several challenges but also of operational improvements at Maracás Menchen mine. We finished the year with stronger production momentum and improved mine access, which helped us reach our annual production and sales within our guidance ranges. The progress achieved through our turnaround initiatives, together with higher ore availability and improved operating stability in the second half of the year, provides a stronger foundation as we enter 2026. Our focus remains on disciplined execution of the mine plan, cost control, and continued operational consistency."

Mr. J. Alberto Arias, Co-Chief Executive Officer of Largo, added: "In addition to the stronger operating base, we are encouraged by recent developments in the vanadium market and by the progress in evaluating the addition of copper and precious group metals as potential near future by-products of our operations using our existing ore processing infrastructure. The strengthening of ferrovanadium prices in the U.S. and Europe in early 2026, together with the recent reduction in U.S. tariff barriers on Brazilian products, has supported a more constructive commercial outlook. Largo remains well-positioned to benefit from these trends after demonstrating its reliability as a Western-aligned primary vanadium producer during the severely depressed market conditions of 2025."

Q4 2025 and Full Year 2025 Highlights

Operation Highlights

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Total ore mined of 665,953 tonnes in Q4 2025 vs. 476,742 tonnes in Q4 2024, a 40% increase, reflecting improved mine access and stronger mine sequencing during the second half of 2025. The effective grade of ore mined improved to 0.53% from 0.49%.

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Q4 2025 Vanadium Pentoxide production of 2,961 tonnes represented a 67% increase over the 1,775 tonnes in Q4 2024 and a 12% increase over the 2,636 tonnes in Q3 2025. Production continued to improve throughout the second half of 2025, supported by enhanced access to the 180 bench in the western basin of the mine and improved operational coordination. For the full year 2025, production was 9,150 tonnes, within the Company's annual production guidance range of 9,000 - 11,000 tonnes.

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During 2025, Largo also advanced the installation of additional flotation cell circuits to increase ilmenite concentrate production capacity to 115,000 tonnes annually from 42,000 tonnes annually and resumed ilmenite circuit operations in November 2025.

Commercial Highlights

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Sales volume totaled 2,396 tonnes of Vanadium Pentoxide in Q4 2025, including 780 tonnes related to the Company's inventory supply agreement. This volume decreased 21% compared to 3,033 tonnes sold in Q4 2024 due to the impact of U.S. tariffs, which made sales of high purity vanadium, one of Largo's highest premium products, uneconomical in the U.S., contributed to order and contract cancellation, and led to an inventory buildup in excess of 300 tonnes in bonded warehouses in Baltimore, MD. The disruption also required the Company to shift volumes toward standard-grade material, which in turn supported the fulfillment of previously delayed contractual deliveries following lower production earlier in the year. Full year 2025 sales of 8,686 tonnes of Vanadium Pentoxide were 10% lower than 9,600 tonnes in 2024.

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Sales of Ilmenite concentrate, a by-product of the vanadium operation, totaled 12,930 tonnes in Q4 2025 vs. 10,570 tonnes in Q4 2024; full year 2025 ilmenite concentrate sales amounted to 33,959 tonnes compared to 42,916 tonnes in 2024, due to the temporary shutdown of the plant during Q4 2025 to expand its flotation circuit capacity.

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Vanadium market conditions remained mixed through Q4 2025, particularly in Europe, where uneven demand across key steel and alloy end markets persisted. Vanadium pentoxide ("V2O5") pricing remained below historical levels, with the average benchmark price at $5.86/lb in Q4 2025 vs. $5.34/lb in Q4 2024, and $5.89/lb as at year-end 2025 vs. $5.37/lb a year earlier. Ferrovanadium ("FeV") pricing remained under pressure, reflecting softer demand from the steel sector and continued global supply availability, with the average benchmark price at $23.85/kg in Q4 2025 vs. $26.04/kg in Q4 2024, and $23.83/kg as at year-end 2025 vs. $25.38/kg a year earlier.

Financial Highlights

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Revenues of $22.3 million in Q4 2025 vs. revenues of $24.3 million in Q4 2024, an 8% decrease; full year 2025 revenues of $109.9 million vs. $124.9 million in 2024, a 12% decrease. Revenues in Q4 2025 were affected by lower sales volumes due to the 50% U.S. import tariff on Brazil, which impacted Largo's high purity vanadium products used primarily in the aerospace and defense industries.

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Revenues per lb sold of V2O5equivalent reached $5.78 in Q4 2025 vs $5.70 in Q4 2024, and $6.07 in 2025 vs. $6.40 in 2024.

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Adjusted cash operating costs excluding royalties1were $3.22/lb sold in Q4 2025 vs. $3.05/lb sold in Q4 2024; full year 2025 adjusted cash operating costs excluding royalties were $3.32/lb sold, an 18% improvement over $4.05/lb sold in 2024, reflecting the Company's operating cost reduction strategy and efficiency improvements.

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Cash provided before working capital items1was negative $3.9 million in Q4 2025, compared with positive $5.8 million in Q4 2024. For the full year 2025, cash used before working capital items was $2.8 million, compared with cash provided before working capital items of $3.2 million in 2024.

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Q4 2025 adjusted EBITDA1was negative $6.6 million, compared to positive $2.3 million in Q4 2024, while Mining Operations Adjusted EBITDA was negative $3.6 million, compared to positive $4.5 million in Q4 2024. For the full year 2025, adjusted EBITDA was negative $7.4 million, and Mining Operations Adjusted EBITDA was positive $2.3 million.

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Net loss of $17.2 million for Q4 2025 (including a net gain of $40 thousand in non-recurring items), compared to a net loss of $13.0 million in Q4 2024 (including a net loss of $2.5 million in non-recurring items). This change was mainly due to an 8% decline in revenues, partially offset by a 15% reduction in operating costs. For the full year 2025, the Company posted a net loss of $68.7 million (including $33.3 million in non-recurring items), compared to a net loss of $50.6 million in 2024 (including $18.7 million in non-recurring items), primarily driven by a 12% decrease in revenues.

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Basic loss per share of $0.22 in Q4 2025 (including less than $0.01 per share in non-recurring items) vs. $0.19 (including $0.04 per share in non-recurring items) in Q4 2024; full year 2025 basic loss per share of $1.01 (including $0.49 per share in non-recurring items) vs. $0.78 in 2024 (including $0.29 per share in non-recurring items).

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The Company ended 2025 with a cash balance of $9.7 million and debt of $107.1 million. During 2025, Largo amended Brazilian debt facilities and deferred principal repayments to September 2026. After year-end, the Company continued to pursue additional financing flexibility, including its ATM program.

Financial and Operational Results - Highlights

| thousands of U.S. dollars, except as otherwise stated | | Q4 2025 | | | Q4 2024 | | | Change | | | Revenues | | 22,271 | | | 24,268 | | | -8.2% | | | Operating costs | | (25,792 | ) | | (30,194 | ) | | -14.6% | | | Net loss | | (17,165 | ) | | (12,990 | ) | | 32.1% | | | Basic loss per share | | (0.22 | ) | | (0.19 | ) | | 15.8% | | | Adjusted EBITDA1 | | (6,475 | ) | | 2,337 | | | -377.0% | | | Mining operations adjusted EBITDA1 | | (3,540 | ) | | 4,466 | | | -181.3% | | | Cash provided (used) before working capital items | | (3,913 | ) | | 5,759 | | | -167.9% | | | Cash operating costs excl. royalties1 ($/lb) | | 3.31 | | | 3.67 | | | -9.3% | | | Adjusted cash operating costs excl. royalties1 ($/lb) | | 3.22 | | | 3.05 | | | 6.6% | | | Cash | | 9,716* | | | 22,106 | | | -56.1% | | | Debt | | 107,066* | | | 92,280 | | | 16.0% | | | Total mined - dry basis (tonnes) | | 2,867,587 | | | 3,673,416 | | | -21.9% | | | Total ore mined (tonnes) | | 665,953 | | | 476,742 | | | 39.7% | | | Effective grade2of ore mined (%) | | 0.53 | | | 0.49 | | | 8.2% | | | V2O5equivalent produced (tonnes) | | 2,961 | | | 1,775 | | | 66.8% | | | V2O5equivalent sales (tonnes) | | 2,396 | | | 3,033 | | | -21.0% | | | Ilmenite concentrate produced (tonnes) | | 7,328 | | | 10,292 | | | -28.80% | | | _* As of December 31, 2025. As of December 31, 2024_ | | | | | | | | | | | 1 The cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, Adjusted EBITDA, Mining operations adjusted EBITDA, revenues per pound per pound sold are reported on a non-GAAP basis. Refer to the "Non-GAAP Measures" section of this press release. Revenues per pound sold are calculated based on the quantity of V2O5sold during the stated period. 2 Effective grade represents the percentage of magnetic material mined multiplied by the percentage of V2O5in the magnetic concentrate | | | | | | | | | | | thousands of U.S. dollars, except as otherwise stated | | 2025 | | | 2024 | | | Change | | | Revenues | | 109,887 | | | 124,920 | | | -12.0% | | | Operating costs | | (132,640 | ) | | (145,818 | ) | | -9.0% | | | Net loss | | (68,738 | ) | | (50,565 | ) | | 35.9% | | | Basic loss per share | | (1.01 | ) | | (0.78 | ) | | 29.5% | | | Adjusted EBITDA1 | | (7,264 | ) | | (2,076 | ) | | 254.3% | | | Mining operations adjusted EBITDA1 | | 2,403 | | | 7,976 | | | -71.0% | | | Cash provided (used) before working capital items | | (2,803 | ) | | 3,234 | | | -186.7% | | | Cash operating costs excl. royalties1($/lb) | | 4.53 | | | 4.84 | | | -6.2% | | | Adjusted cash operating costs excl. royalties1($/lb) | | 3.32 | | | 4.05 | | | -18.0% | | | Cash | | 9,716* | | | 22,106 | | | -56.1% | | | Debt | | 107,066* | | | 92,280 | | | 16.0% | | | Total mined - dry basis (tonnes) | | 14,928,193 | | | 13,949,665 | | | 7.0% | | | Total ore mined (tonnes) | | 2,209,355 | | | 2,249,759 | | | -1.8% | | | Effective grade2of ore mined (%) | | 0.50 | | | 0.63 | | | -20.6% | | | V2O5 equivalent produced (tonnes) | | 9,150 | | | 9,264 | | | -1.2% | | | V2O5 equivalent sales (tonnes) | | 8,686 | | | 9,600 | | | -9.5% | | | Ilmenite concentrate produced (tonnes) | | 30,282 | | | 44,863 | | | -32.5% | | | _* As of December 31, 2025. As of December 31, 2024_ | | | | | | | | | | | _1 The cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, Adjusted EBITDA, Mining operations adjusted EBITDA, revenues per pound per pound sold are reported on a non-GAAP basis. Refer to the "Non-GAAP Measures" section of this press release. Revenues per pound sold are calculated based on the quantity of V2O5 sold during the stated period. 2 Effective grade represents the percentage of magnetic material mined multiplied by the percentage of V2O5 in the magnetic concentrate_ | | | | | | | | | |

Subsequent Events

Impact of the 50% U.S. Tariff Relief in February 2026

Since the elimination of the 50% tariffs in February 2026, Largo has been able to sell its high-purity vanadium inventory accumulated since 2025 in bonded warehouses in Baltimore, MD. Largo is now restarting its high-purity vanadium production, which had been temporarily halted as a result of the unfavorable tariff events in Q3 and Q4 2025.

Largo is now increasing its sales in the U.S. following the import tariff reduction to benefit from the significant price premium for FeV in the U.S. relative to other regions.

ATM Financing Update and Added Financial Flexibility

Subsequent to year-end, Largo established an ATM program under which it may issue common shares for aggregate gross proceeds of up to $60.0 million. As of March 27, 2026, the Company had issued 13,630,989 common shares under the ATM Program, generating total net proceeds of $19.5 million, at an average price of $1.48 per share, providing the Company with financial flexibility to reduce working capital constraints and implement further operational improvements.

Renegotiation of Promissory Note with ARG

On January 12, 2026, the Company extended its promissory note with ARG International AG in the principal amount of $6 million until February 2027, under the same terms announced in the August 11, 2025 press release, plus a 1% extension fee.

Storion Investment

During the first quarter of 2026, Storion raised $10 million through the issuance of approximately 6.1 million preferred units. As a result of this capital raise, Largo's ownership and percentage interest in Storion decreased from 50% to approximately 37%. Additionally, the Company's board representation was reduced from two nominees to one.

Further Positive Copper and Platinum Group Metals Flotation Test Results

The Company continues to assess the potential for copper and precious metals concentrate production potential with tests using part of its flotation plant circuits. Concentrate results from these tests, analyzed externally at a certified laboratory, yielded 17% Copper, 14.3 grams per ton ("gpt") Gold, 16.2 gpt Platinum, 13.2 gpt Palladium, 69 gpt Silver, 0.8% Nickel, and 0.7% Cobalt. This new data is based on four days of continuous industrial-scale operation using current mine feed from the Maracas Menchen mine and indicates significantly higher values than the prior tests Largo reported in its February 5, 2026 press release, which were based on a composite of the top 12 results out of 45 conventional laboratory flotation test results. Largo's operating team is currently preparing technical reports to quantify the reserves of these new elements, along with an economic analysis of the potential addition of these elements as by-products of Largo's existing operations.

Vanadium Market Update

Vanadium market conditions have improved materially since our update of February 23, 2026, with U.S. FeV prices continuing to strengthen and European FeV prices also increasing. Structural supply constraints remain critical in the U.S. market, including limited conversion capacity and trade-related restrictions.

Year to date, U.S. FeV prices have increased 89% and European FeV prices have increased 23%.

More broadly, key drivers of this price upturn are strong demand from vanadium flow battery projects, especially in China, regulatory changes on the vanadium content of steel products in India, and signs of market improvement in Chinese steel demand prospects, based on our recent visit to Asian customers. European demand remains soft.

Largo remains a western-aligned primary vanadium producer capable of supplying both ferrovanadium and high-purity vanadium products, essential to the aerospace and defense industries. With lower tariff constraints, Largo is well-positioned to add more primary units to the U.S. market and enhance supply security for U.S. customers.

2026 Guidance

Largo is reiterating its 2026 vanadium guidance as previously disclosed on February 5, 2026. The Company continues to expect annual V2O5 equivalent production of 10,500 to 12,000 tonnes, annual V2O5 equivalent sales of 7,500 to 9,500 tonnes, and adjusted cash operating costs excluding royalties of $3.50/lb to $4.50/lb sold.

The Company's 2026 guidance is presented on a business-as-usual basis and reflects management's current expectations for improved mine access, higher ore availability, and the continued impact of operational enhancements implemented during 2025. The Company has also committed a significant portion of its expected monthly production in 2026 to sales of its VPURE+® and VPURE® products, as well as FeV produced from VPURE®. Sales guidance does not include purchased products or any sold material related to the Company's vanadium inventory supply agreement.

| | | 2026 Guidance | | | | | | Annual V2O5equivalent production | | tonnes | | | 10,500 - 12,000 | | | Annual V2O5equivalent sales1 | | tonnes | | | 7,500 - 9,500 | | | | | | | | | | | Adjusted cash operating costs excluding royalties per pound2 | | $/lb | | | 3.50 - 4.50 | |

| Vanadium | Q1 | Q2 | Q3 | Q4 | 2026 | | | | | | | | Low | High | Low | High | Low | High | Low | High | Low | High | | Production (tonnes V2O5) | 2,400 | 2,700 | 2,500 | 3,000 | 2,600 | 3,100 | 3,000 | 3,200 | 10,500 | 12,000 | | | | | | | | | | | | | | Sales1 (tonnes V2O5) | 1,500 | 2,000 | 2,000 | 2,500 | 2,000 | 2,500 | 2,000 | 2,500 | 7,500 | 9,500 |

1. Sales guidance does not include purchased products or any sold material related to the Company's vanadium inventory supply agreement. 2. Adjusted cash operating costs excluding royalties per pound is a non-GAAP ratio with no standard meaning under IFRS, and may not be comparable to similar financial measures disclosed by other issuers. Refer to the "Non-GAAP Measures" section of this press release.

The Company continues to monitor market conditions, geopolitical developments, and trade-related uncertainties, including the potential impact of new tariffs on imports from Brazil to the U.S., the rising energy costs particularly oil on the company's production costs and may revise its guidance if operating assumptions or market conditions materially change.

The information provided within this release should be read in conjunction with Largo's annual consolidated financial statements for the years ended December 31, 2025 and 2024 and its management's discussion and analysis ("MD&A") for the year ended December 31, 2025, which are available on the Company's website and on its profiles on SEDAR+ and the Securities and Exchange Commission.

About Largo

Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in Brazil. As one of the world's largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The Company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.

Largo is also strategically invested in the clean energy storage sector through its 37.4% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S.

The Company also holds a 100% interest in the Northern Dancer Tungsten-Molybdenum property located in the Yukon Territory, Canada, and 100% interest in the Currais Novos Tungsten Tailing Project near Natal, Brazil. Preliminary economic assessments were completed for each asset in 2011.

Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com.

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For further information, please contact:

Investor Relations Vera Abdo Investor Relations Consultant +1.640.223.6956 largoir@mzgroup.com

Cautionary Statement Regarding Forward-looking Information:

This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. Forward‐looking information in this press release may include, but is not limited to, the ability of the Company to continue as a going concern, the ability of the Company to keep the Maracás Menchen Mine operating, the timing and amount of estimated future production and sales; the future price of commodities; Company's positioning to supply FeV to the U.S. market pending potential tariff developments; the impact of reduced tariffs on the U.S. vanadium market and the Company's ability to capitalize on such reduction; the future of FeV prices and the Company's ability to benefit from the strengthening of those prices; the Company's ability to explore and commercialize copper and PMGs concentrates; the Company's 2026 guidance; the Company's future strategy; the Company's ability to benefit from reductions in U.S. tariff barriers; and management's expectations for improved mine access, higher ore availability and the impact of operational enhancements implemented during 2025.