09:00 AM EDT, 09/29/2025 (MT Newswires) -- Largo was at last look up more than 1% in US premarket trade after announcing Monday an operational update, adjustments to its U.S. sales strategy amid ongoing tariff measures, and a financing update.

This comes after the company disclosed in interim financial statements and MD&A released on August 12, 2025, that it will require additional financing to repay its liabilities, support its working capital to fund operating activities, and continue to operate as a going concern. The company said Monday it is actively pursing financing options to raise additional capital. "There is no assurance that these initiatives will be successful, timely or sufficient," it added.

In a vanadium production update Monday, the company reported sustained production levels during Q3 2025. In August 2025, the company produced 931 tonnes of vanadium pentoxide Z equivalent, an improvement from 856 tonnes of V2O5 produced in July 2025. It said these results "further reflect the progress of the operational turnaround program initiated earlier this year, which continues to deliver improvements in mine planning, equipment availability, and overall plant performance."

Meanwhile, Largo produced 4,141 tonnes of ilmenite concentrate in July 2025 and 3,298 tonnes in August 2025 with TiO2 grades above 46%. In September 2025, the company started the installation of additional flotation cell circuits to increase its capacity to 115,000mt from 42,000mt of ilmenite concentrate annually. It said the ilmenite circuit stopped production in September 2025 for the equipment installation and is currently expected to resume operations in November 2025, with a ramp up to the expanded production levels currently expected to occur by year end. Annual guidance of 25,000mt to 35,000mt of ilmenite production for 2025 is maintained.

In a U.S. sales strategy update, the company noted it finances all of its inventory during transit and ferrovanadium conversion. The company has recently been unable to deliver vanadium products under certain contracts due to its limited working capital. To address this situation, the company had discussions with affected customers and is evaluating various other short-term financing solutions.

On July 30, 2025, Largo noted an Executive Order increased tariffs on imports from Brazil to the U.S. from 10% to 50%, effective August 6, 2025. This tariff increase did not affect Largo's ferrovanadium sales in the U.S., but is impacting Largo's high purity vanadium sales contracts in the U.S. As a result of the tariffs and the short-term liquidity issues, the company is seeking to renegotiate affected contracts and has resulted in delayed shipments and some defaults to U.S. customers. The company said it has been actively lobbying the U.S. government to exempt vanadium products from tariffs on the basis that Largo's high purity vanadium products are sold to customers in the titanium alloys and chemical industries, which are of critical strategic importance for the U.S. aerospace and defense industries.

Also, the company is evaluating opportunities to unlock its ownership in tungsten projects, given that tungsten is deemed a critical material by multiple jurisdictions, including the U.S. and Canada. Largo owns 100% of the Northern Dancer tungsten-molybdenum project in Yukon, Canada as well as its Currais Novos tungsten project in Brazil. Preliminary economic assessments were completed for Northern Dancer and Currais Novos in 2011. The company said it is evaluating strategic alternatives for these assets to potentially unlock value.

Largo believes Cirque Capital LLC is in default of its payment obligations to the company in connection with certain factoring transactions. The Ccmpany is seeking an amicable resolution of the default but "reserves all its legal remedies".

Due to the current liquidity issues, Largo said its operation is at risk of operating disruptions given the accounts payables owed to its mining contractor and other suppliers. The company is evaluating several financing alternatives in the near-term to address this issue.

Daniel Tellechea, Interim CEO of Largo, said: "The company continues to navigate its current liquidity issues and challenging market conditions following the implementation of Executive Order 14323 and the resulting 50% tariff on imports from Brazil affecting our high purity vanadium supply which is of critical importance for the U.S. aerospace and defense industries. While these tariffs and our current liquidity issues have resulted in delayed shipments and/or some defaults on certain vanadium sales contracts, we are actively evaluating options to increase liquidity and continue negotiating payment plans with our suppliers and contractors."

He added: "Our operational turnaround initiatives are delivering results with sustained production of vanadium pentoxide of 931 tonnes in August after 856 tonnes in July, reflecting the progress made in strengthening mine and plant performance."