The Globe and Mail reports in its Wednesday edition that RBC analyst Andrew Wong has assigned a new "speculative risk" qualifier to his "outperform" ranking for Largo, pointing to lower vanadium prices and delayed construction of the vanadium-titanium Maracas Menchen operation in Brazil. The Globe's David Leeder writes that Mr. Wong cut his share target by a loonie to $4. Analysts on average target the shares at $4.63. Mr. Wong says in a note: "Vanadium pricing remains suppressed, but potentially hovering near bottom: Largo reiterated continued headwinds in the European and Chinese markets, driven by reduced steel and infrastructure demand as well as an oversupply from producers in both China and Russia. Given potential global macro headwinds driven by a broadening trade war, we see significant uncertainty in a near-term vanadium price recovery. We flag that although the vanadium market remains opaque, prices have historically bottomed near Chinese steel rebar break-even. Potential upside for Largo shares under (the right) vanadium prices: We assume benchmark vanadium prices of $7/lb in 2026 with an average realized price to Largo of $7.53/lb in 2025 due to the benefit of high-purity vanadium sales (40 per cent of volume)."
© 2025 Canjex Publishing Ltd. All rights reserved.