11:49 AM EDT, 08/19/2024 (MT Newswires) -- Largo (LGO.TO) on Monday reported a US$6.7 million write down linked to its produced vanadium products for the second quarter.

Largo noted that the write-down is non-recurring and when excluded, its adjusted cash operating costs excluding royalties per pound amount to US$4.20 per pound, declining from US$5.18 a year ago.

The company said the lower costs were driven by cost reduction activities at the Maracas Menchen mine in Brazil.

Largo said it also booked write-downs of US$4.5 million in the first quarter and US$2.2 million in the fourth quarter of 2023. Adjusted cash operating costs excluding royalties stood at US$5.04 per pound in the fourth quarter of 2023 and US$5.33 per pound in the first quarter.

"We believe it is important to communicate to our stakeholders that the company's ongoing efforts to streamline operations and reduce costs are beginning to bear fruit, as evidenced by the declining trend in our unitary cash costs at the Maracas Menchen mine," said Interim CEO Daniel Tellechea. "Despite the impact of non-recurring items in recent quarters, our team remains laser-focused on achieving further efficiencies, ensuring that Largo is well-positioned to navigate current market challenges and deliver long-term value to our shareholders."

Largo's shares were last seen up $0.10 to $2.49 on the Toronto Stock Exchange.

Price: 2.49, Change: +0.10, Percent Change: +4.18