Q: Any hope for better days ahead for Largo?
5i Research Answer:
There has been no company news for some time. A loss is expected when 2024 results come in, but it is expected to make money (14c EPS) this year. With $64M debt, it is still quite leveraged considering fairly weak cash flow. The stock has not done much, and is still going to be sensitive to China and overall demand for steel. Lower rates should help sentiment. Arias Resource Capital owns 43%, making trading fairly thin and perhaps turning off some potential investors or corporate buyers. We would consider it generally OK but would not expect miracles here and would temper expectations for big gains in the next 12 months.