Largo Inc. (NASDAQ:LGO) reported its first production of copper, gold, platinum and palladium concentrates during the third quarter of 2026, marking a significant step in diversifying output from its Maracás Menchen Mine in Brazil.
The company also reported lower quarterly vanadium production, revised its full-year production and cost forecasts, and made further progress on restructuring its commercial bank debt.
Vanadium Production Declines as Sales Remain Stable
Vanadium pentoxide (V₂O₅) production declined to 2,093 tonnes in the third quarter, compared with 2,636 tonnes a year earlier, reflecting the company’s strategy to reduce inventories and prioritise higher-margin products.
However, production for the first nine months of 2026 increased 23% year over year to 7,609 tonnes.
Quarterly vanadium sales remained broadly unchanged at 2,428 tonnes, compared with 2,417 tonnes in the corresponding period of 2025.
First Copper, Gold and PGM Output Recorded
Following regulatory approval, Largo began full-scale production of polymetallic by-product concentrates in August 2026.
Third-quarter output included 108 tonnes of copper, 289 ounces of gold, 166 ounces of platinum and 291 ounces of palladium, all contained in concentrates.
The concentrates were sold to three commodity traders and one European smelter, although no by-product metal sales volumes were recorded during the quarter.
The new production streams are expected to generate additional revenue opportunities alongside Largo’s established vanadium operations.
Full-Year Production Forecast Lowered
Largo reduced its 2026 V₂O₅ production guidance to between 9,500 and 10,500 tonnes, down from its previous forecast of 10,500 to 12,000 tonnes.
The company maintained its full-year vanadium sales guidance of 7,500 to 9,500 tonnes.
Adjusted cash operating cost guidance was increased to $5.00–$6.00 per pound of V₂O₅, reflecting higher diesel and sulphuric acid expenses.
Largo estimates that credits from copper, gold and platinum group metal by-products could reach approximately $1.2 million to $1.8 million per month, equivalent to around $0.78–$1.00 per pound of V₂O₅.
Debt Restructuring Agreements Reach 58.4% Coverage
Largo also announced a definitive debt restructuring agreement with Banco Santander (Brasil) S.A.
Combined with earlier agreements involving Banco do Brasil S.A. and Caixa Econômica Federal, approximately 58.4% of the company’s commercial bank senior debt is now covered by restructuring arrangements.
The agreed framework establishes a final maturity date of March 2030, including a six-month grace period on principal repayments followed by 36 months of quarterly amortisation.
The introduction of additional metal production provides Largo with potential new sources of cash flow, although the reduced vanadium production outlook and higher operating cost forecasts remain important considerations for investors.