Largo Generates $4.7 Million in Copper and Byproduct Concentrate Sales at Margins Above 90%
Key Facts
Largo said recent sales of copper and platinum group metals concentrate generated revenue of about $4.7 million, with an operating profit margin above 90%, highlighting a new path to diversify a business whose production has been tied mainly to vanadium. In a statement issued on September 23, the company said the concentrate had become its highest-margin product. It began producing copper and platinum group metals as byproducts on August 7, after receiving approval from the relevant mining authority. This comes as Largo continues to restructure its commercial bank debt, with agreements announced so far covering about 48% of nearly $82 million in senior debt. LGO shares closed at $0.373 on October 29, according to EL7 data.
Largo began producing copper and platinum group metals at the Campbell mine. These metals are byproducts of copper in the concentrate the company produces. In its second-quarter report, the company estimated initial concentrate production at about 300 to 400 tonnes per month, with an expected average copper grade of about 15%. Those figures were announced guidance for initial production, while the company later reported that completed concentrate sales generated revenue of about $4.7 million. The move from starting production to completing commercial sales marks progress in its product diversification. The announced guidance did not include an achieved production figure for the third quarter.
Largo linked its focus on concentrate to a strategy of pursuing higher-margin products, saying the product currently leads its portfolio by margin. The company is considering a cost-efficient expansion that could double concentrate production capacity during 2027. It has not announced a final decision to proceed with the expansion in the available information, describing it as an option under evaluation. This path gives copper and byproduct metals commercial importance alongside its vanadium business. The company also said in its September update that it expects high-purity vanadium products to account for a larger share of its sales mix in 2027 than in 2026.
The diversification strategy comes as Largo faces pressure on the vanadium side. On September 14, the company forecast that 2026 vanadium production would be near the low end of its previous guidance, while maintaining its annual production guidance for copper and platinum group metals concentrate. It attributed cost-cutting initiatives to higher input prices, including diesel and sulfuric acid. The company said it was temporarily reducing mining rates and processing previously mined ore stockpiles. In the second quarter, vanadium pentoxide equivalent production rose 28.5% to 2,900 tonnes, compared with 2,256 tonnes in the corresponding period of 2025; these are second-quarter figures, not third-quarter results.
Revenue improved in the second quarter alongside higher vanadium production, rising 68.5% to $43.999 million from $26.117 million a year earlier. But the company recorded a net loss of $22.735 million, compared with a loss of $5.752 million in the second quarter of 2025. The results highlight a divergence between revenue growth and a wider net loss during the period. As it seeks to improve its product mix, the company said high-purity products represented only about 4% of vanadium production in the first half of 2026. A process optimization study indicated that this share could rise to about 68% of total vanadium production.
On debt, Largo signed definitive agreements with Banco do Brasil and Caixa Econômica Federal covering about 48% of its nearly $82 million in senior trade debt. The company said it was working to finalize agreements with the remaining banks, according to its September update. This puts restructuring at the center of its financial efforts, alongside addressing operating costs and developing additional revenue sources. On the mining front, the company received an environmental permit on October 8 to develop Brazil’s open-pit GAN deposit, which it described as the second mine in its proposed mining sequence. It said development of the pit is expected to extend production for multiple years and increase operating flexibility by diversifying ore sources.
The GAN deposits also contain copper, gold and platinum group metals, according to the company, similar to the byproducts from the Campbell pit since August 2026. Under its vanadium production optimization plan, Largo expects vanadium pentoxide output to move toward about 876 tonnes per month, compared with about 1,000 tonnes per month at the upper end of current guidance. These estimates are consistent with the company’s expectation that 2026 production will be near the low end of its previous range. GAN development and a potential expansion of copper and platinum group metals concentrate production remain among the steps in the company’s future plans. Largo also maintained its 2026 concentrate production guidance, while targeting a larger share for high-purity products in its sales mix in 2027.