08:12 AM EDT, 05/16/2024 (MT Newswires) -- Largo (LGO.TO) was at last look up 1.85% in US premarket on Thursday as the company said it expects improvement over the second half of fiscal 2004, even after reporting its net loss widened year over year in the first quarter.

"Having navigated challenges in the first quarter, such as an extended maintenance period which led to increased costs, and a sharp decline in vanadium prices, our focus remains on restoring profitability at Largo," interim CEO and director Daniel Tellechea said in a statement. "While we anticipate elevated costs in the first half of the year, we expect improvements in the second half as the full effects of our previously announced productivity initiatives and cost reduction measures materialize at our Maracas Menchen mine."

The vanadium producer booked a net loss of US$13.0 million, or a loss of US$0.20 per basic share, including $4.4 million in non-recurring items. This swelled from a loss of US$1.2 million, or a loss of US$0.02 per share, which included $0.1 million in non-recurring items.

Revenue dropped to US$42.2 million from US$57.4 million. It said lower revenues were driven by a "significant" decrease in vanadium prices. Revenues per pound sold of $6.91 in Q1 2024 compared to $9.14 in Q1 2023

Adjusted EBITDA swung to negative US$3.626 million from a gain of near US$9.6 million.

Largo produced 1,729 tonnes of vanadium, falling from 2,111 tonnes. Ilmenite concentrate output totaled 9,563 tonnes. Sales of vanadium were down year over year.

The company said it produced 9,563 tonnes of ilmenite concentrate in Q1 2024, an increase of 7% from Q4 2023, and sold 513 tonnes of ilmenite concentrate in Q1 2024. It added Ilmenite sales were below Q1 2024 guidance due to operational and administrative delays.