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Largo Resources

TSX:LGO
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LGO
TSX
CA$1B
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

Largo Resources Ltd., a natural resource development and exploration company, engages in the acquisition, exploration, and development of mining and exploration properties located in Brazil and Canada. The last earnings update was 127 days ago. More info.


Add to Portfolio Compare Print
  • Largo Resources has significant price volatility in the past 3 months.
LGO Share Price and Events
7 Day Returns
-3%
TSX:LGO
-2.1%
CA Metals and Mining
0.3%
CA Market
1 Year Returns
67.2%
TSX:LGO
-5.9%
CA Metals and Mining
0.7%
CA Market
LGO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Largo Resources (LGO) -3% -10% -22.2% 67.2% 578.8% -17%
CA Metals and Mining -2.1% 1.4% 13.1% -5.9% 8.9% -22%
CA Market 0.3% 2% 13.2% 0.7% 16.6% 5.6%
1 Year Return vs Industry and Market
  • LGO outperformed the Metals and Mining industry which returned -5.9% over the past year.
  • LGO outperformed the Market in Canada which returned 0.7% over the past year.
Price Volatility
LGO
Industry
5yr Volatility vs Market

LGO Value

 Is Largo Resources undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Largo Resources to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Largo Resources.

TSX:LGO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:LGO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.18
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.181 (1 + (1- 26.5%) (13.76%))
1.201
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.201 * 5.96%)
9.11%

Discounted Cash Flow Calculation for TSX:LGO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Largo Resources is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:LGO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 9.11%)
2019 319.00 Analyst x1 292.38
2020 276.00 Analyst x1 231.86
2021 257.00 Analyst x1 197.88
2022 180.00 Analyst x1 127.03
2023 161.00 Analyst x1 104.14
2024 149.37 Est @ -7.22% 88.55
2025 142.69 Est @ -4.47% 77.53
2026 139.06 Est @ -2.55% 69.25
2027 137.40 Est @ -1.2% 62.71
2028 137.05 Est @ -0.25% 57.33
Present value of next 10 years cash flows CA$1,308.67
TSX:LGO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$137.05 × (1 + 1.95%) ÷ (9.11% – 1.95%)
CA$1,951.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$1,951.85 ÷ (1 + 9.11%)10
CA$816.58
TSX:LGO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$1,308.67 + CA$816.58
CA$2,125.25
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$2,125.25 / 529.08
CA$4.02
TSX:LGO Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$4.02
Current discount Discount to share price of CA$2.24
= -1 x (CA$2.24 - CA$4.02) / CA$4.02
44.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Largo Resources is available for.
Intrinsic value
44%
Share price is CA$2.24 vs Future cash flow value of CA$4.02
Current Discount Checks
For Largo Resources to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Largo Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Largo Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Largo Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Largo Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:LGO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in CAD CA$0.41
TSX:LGO Share Price ** TSX (2019-03-20) in CAD CA$2.24
Canada Metals and Mining Industry PE Ratio Median Figure of 115 Publicly-Listed Metals and Mining Companies 12.49x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.78x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Largo Resources.

TSX:LGO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:LGO Share Price ÷ EPS (both in CAD)

= 2.24 ÷ 0.41

5.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Largo Resources is good value based on earnings compared to the CA Metals and Mining industry average.
  • Largo Resources is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Largo Resources's expected growth come at a high price?
Raw Data
TSX:LGO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
-1%per year
Canada Metals and Mining Industry PEG Ratio Median Figure of 35 Publicly-Listed Metals and Mining Companies 0.7x
Canada Market PEG Ratio Median Figure of 253 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

TSX:LGO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.51x ÷ -1%

-5.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Largo Resources earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Largo Resources's assets?
Raw Data
TSX:LGO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in CAD CA$0.50
TSX:LGO Share Price * TSX (2019-03-20) in CAD CA$2.24
Canada Metals and Mining Industry PB Ratio Median Figure of 1,080 Publicly-Listed Metals and Mining Companies 1.44x
Canada Market PB Ratio Median Figure of 2,349 Publicly-Listed Companies 1.58x
TSX:LGO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:LGO Share Price ÷ Book Value per Share (both in CAD)

= 2.24 ÷ 0.50

4.45x

* Primary Listing of Largo Resources.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Largo Resources is overvalued based on assets compared to the CA Metals and Mining industry average.
X
Value checks
We assess Largo Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Largo Resources has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LGO Future Performance

 How is Largo Resources expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Largo Resources expected to grow at an attractive rate?
  • Largo Resources's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Largo Resources's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • Largo Resources's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:LGO Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:LGO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts -1%
TSX:LGO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts -5.7%
Canada Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 33.3%
Canada Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:LGO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:LGO Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 341 1
2022-12-31 353 1
2021-12-31 454 1
2020-12-31 593 291 241 2
2019-12-31 540 347 274 3
2018-12-31 515 334 314 3
TSX:LGO Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-09-30 393 246 208
2018-06-30 297 141 150
2018-03-31 229 79 45
2017-12-31 168 59 -10
2017-09-30 150 25 -22
2017-06-30 117 17 -60
2017-03-31 101 3 -56
2016-12-31 81 -16 -56
2016-09-30 57 -23 -80
2016-06-30 37 -26 -105
2016-03-31 18 -21 -95
2015-12-31 8 -8 -130

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Largo Resources's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Largo Resources's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:LGO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Largo Resources Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:LGO Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.37 0.37 0.37 1.00
2019-12-31 0.42 0.42 0.42 1.00
2018-12-31 0.48 0.48 0.48 1.00
TSX:LGO Past Financials Data
Date (Data in CAD Millions) EPS *
2018-09-30 0.41
2018-06-30 0.30
2018-03-31 0.09
2017-12-31 -0.02
2017-09-30 -0.05
2017-06-30 -0.14
2017-03-31 -0.13
2016-12-31 -0.14
2016-09-30 -0.24
2016-06-30 -0.38
2016-03-31 -0.44
2015-12-31 -0.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Largo Resources is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Largo Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Largo Resources has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LGO Past Performance

  How has Largo Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Largo Resources's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Largo Resources has delivered over 20% year on year earnings growth in the past 5 years.
  • Largo Resources has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Largo Resources has become profitable in the last year making it difficult to compare the CA Metals and Mining industry average.
Earnings and Revenue History
Largo Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Largo Resources Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:LGO Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 392.87 207.70 19.46
2018-06-30 296.92 149.77 17.81
2018-03-31 229.39 45.15 15.40
2017-12-31 167.72 -10.41 13.56
2017-09-30 150.21 -21.77 12.78
2017-06-30 117.46 -59.97 13.71
2017-03-31 100.61 -55.74 14.12
2016-12-31 81.23 -55.63 13.38
2016-09-30 57.35 -79.94 12.74
2016-06-30 36.59 -105.24 11.02
2016-03-31 17.65 -94.90 12.94
2015-12-31 7.60 -129.96 13.03
2015-09-30 -125.42 14.12
2015-06-30 -95.65 13.50
2015-03-31 -101.14 11.32
2014-12-31 -52.62 12.78
2014-09-30 -25.61 10.20
2014-06-30 -5.43 9.39
2014-03-31 -6.31 7.44
2013-12-31 -11.58 5.13
2013-09-30 -13.12 4.95
2013-06-30 -13.99 4.27
2013-03-31 -17.84 3.77
2012-12-31 -25.21 3.55
2012-09-30 -19.84 2.99
2012-06-30 -19.90 2.78
2012-03-31 -11.80 3.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Largo Resources made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Largo Resources used its assets more efficiently than the CA Metals and Mining industry average last year based on Return on Assets.
  • Largo Resources has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Largo Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Largo Resources has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LGO Health

 How is Largo Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Largo Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Largo Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Largo Resources's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Largo Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Largo Resources Company Filings, last reported 5 months ago.

TSX:LGO Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 263.50 163.08 128.06
2018-06-30 199.42 395.18 84.19
2018-03-31 120.32 236.47 50.18
2017-12-31 74.36 241.01 54.73
2017-09-30 40.23 265.16 16.05
2017-06-30 24.84 271.83 12.40
2017-03-31 34.11 280.17 11.10
2016-12-31 26.83 276.28 0.76
2016-09-30 38.44 264.00 1.68
2016-06-30 56.88 259.48 3.78
2016-03-31 62.69 242.86 16.11
2015-12-31 32.94 219.97 2.87
2015-09-30 67.92 217.20 18.06
2015-06-30 126.16 216.09 41.52
2015-03-31 112.47 232.38 3.61
2014-12-31 95.41 221.03 11.42
2014-09-30 169.98 210.75 4.38
2014-06-30 195.83 204.65 18.38
2014-03-31 201.40 188.38 15.78
2013-12-31 187.06 162.10 17.01
2013-09-30 174.82 151.22 1.70
2013-06-30 177.54 92.58 2.93
2013-03-31 190.45 73.72 4.71
2012-12-31 180.21 50.18 2.14
2012-09-30 176.36 50.66 3.30
2012-06-30 108.94 14.30 3.47
2012-03-31 110.19 15.42 18.42
  • Largo Resources's level of debt (61.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (86.5% vs 61.9% today).
  • Debt is well covered by operating cash flow (151.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.9x coverage).
X
Financial health checks
We assess Largo Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Largo Resources has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LGO Dividends

 What is Largo Resources's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Largo Resources dividends. Estimated to be 0% next year.
If you bought CA$2,000 of Largo Resources shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Largo Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Largo Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:LGO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Canada Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 1.2%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:LGO Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00
2018-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Largo Resources has not reported any payouts.
  • Unable to verify if Largo Resources's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Largo Resources's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Largo Resources has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Largo Resources's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Largo Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Largo Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Largo Resources has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LGO Management

 What is the CEO of Largo Resources's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Smith
COMPENSATION CA$526,437
AGE 59
TENURE AS CEO 3.9 years
CEO Bio

Mr. Mark Allan Smith, P.E., Esq., has been the Chief Executive Officer of Largo Resources Ltd., since April 1, 2015; and was the President of Largo Resources Ltd. since April 1, 2015 till October 2018. Mr. Smith has been the Chief Executive Officer of NioCorp Developments Ltd. since September 23, 2013, has been its President since May 31, 2015 and has been its Executive Chairman since July 1, 2016. Mr. Smith served as the President of MolyCorp Minerals, LLC and served as its Chief Executive Officer from October 2008 to 2012. Mr. Smith served as the President and Chief Executive Officer of Molycorp, Inc. since March 2010 and since October 2008 respectively. He served as the President and Chief Executive Officer of Chevron Mining Inc. from August 2005 to October 2008. Mr. Smith held numerous engineering, environmental and legal positions within Unocal and later Chevron. He served as the Vice President of Chevron Mining Inc. from August 2005 to April 2006. He served as the Vice President of Unocal Corporation from June 2000 to April 2006. He managed the real estate, remediation, mining and carbon divisions of Unocal Corporation from May 1984 to August 2005. He worked for Unocal for over 22 years. Mr. Smith has 36 years of experience in operating, developing and financing mining and strategic materials projects in the Americas and abroad. He serves as Chairman of Infinite Harvest, Inc. He served as the Chairman of Alloycorp Mining Inc. until May 8, 2015 and served as its Director since November 5, 2009 until May 8, 2015. He has been a Director of Neo Material Technologies Inc. since May 2012 and Largo Resources Ltd. since April 1, 2015. He has been an Independent Director at IBC Advanced Alloys Corp. since May 25, 2016, and serves as its Board Chair. Mr. Smith has been a Non-Executive Director at Talison Lithium Limited since August 4, 2010 and served the same position from November 10, 2009 to March 3, 2010. He has been a Director of NioCorp Developments Ltd. since September 23, 2013 and served as its Member of Advisory Board from February 2013 to September 23, 2013. Mr. Smith also served as a Director of Companhia Brasileira de Metalurgia e Mineracao (CBMM), part of the Moreira Salles Group. He served as a Director of Molycorp, Inc. since October 2008. He served as a Director of Molycorp Minerals, LLC from October 2008 to 2012. He is a Registered Professional Engineer and is an Active Member of the State Bar of California and Colorado. Mr. Smith received his Bachelor of Engineering Degree in Agricultural Engineering from Colorado State University in 1981 and his Juris Doctor, cum laude, from Western State University, College of Law, in 1990.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year.
  • Mark's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Largo Resources management team in years:

4.7
Average Tenure
59
Average Age
  • The tenure for the Largo Resources management team is about average.
Management Team

Mark Smith

TITLE
CEO & Director
COMPENSATION
CA$526K
AGE
59
TENURE
3.9 yrs

Paulo Misk

TITLE
COO & President
COMPENSATION
CA$496K
TENURE
0.4 yrs

Ernest Cleave

TITLE
Chief Financial Officer
COMPENSATION
CA$326K
AGE
49
TENURE
5.5 yrs

Andy Campbell

TITLE
Vice President of Exploration
COMPENSATION
CA$247K
TENURE
15.3 yrs

Nilson Chaves

TITLE
Vice President of Finance & Administration - Brazil
COMPENSATION
CA$428K
TENURE
2.9 yrs

Kurt Menchen

TITLE
COMPENSATION
CA$792K
AGE
67
TENURE
12 yrs
Board of Directors Tenure

Average tenure and age of the Largo Resources board of directors in years:

3.9
Average Tenure
59
Average Age
  • The tenure for the Largo Resources board of directors is about average.
Board of Directors

Mark Smith

TITLE
CEO & Director
COMPENSATION
CA$526K
AGE
59
TENURE
3.9 yrs

David Brace

TITLE
Independent Director
COMPENSATION
CA$67K
TENURE
6.8 yrs

Koko Yamamoto

TITLE
Independent Director
COMPENSATION
CA$65K
TENURE
3.7 yrs

Jesus Arias

TITLE
Independent Director
COMPENSATION
CA$90K
AGE
51
TENURE
7.9 yrs

Daniel Tellechea

TITLE
Independent Director
COMPENSATION
CA$73K
AGE
71
TENURE
3.7 yrs
Who owns this company?
Recent Insider Trading
  • Largo Resources insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
17. Jan 19 Sell Alberto Beeck Individual 10. Jan 19 10. Jan 19 -356,900 CA$3.10 CA$-1,106,390
18. Dec 18 Sell Alberto Beeck Individual 13. Dec 18 14. Dec 18 -608,000 CA$3.16 CA$-1,896,231
14. Dec 18 Sell Mark Smith Individual 11. Dec 18 11. Dec 18 -93,242 CA$3.16 CA$-294,551
14. Dec 18 Sell Ernest Cleave Individual 11. Dec 18 11. Dec 18 -28,620 CA$3.16 CA$-90,411
27. Nov 18 Buy Mark Smith Individual 27. Nov 18 27. Nov 18 10,000 CA$2.86 CA$28,565
15. Oct 18 Sell Alberto Beeck Individual 12. Oct 18 12. Oct 18 -8,000,000 CA$2.71 CA$-21,684,250
11. Oct 18 Sell Arias Resource Capital Management LP Company 09. Oct 18 09. Oct 18 -13,864,406 CA$2.70 CA$-37,373,714
01. Aug 18 Sell Mark Smith Individual 24. Jul 18 24. Jul 18 -2,300,000 CA$1.40 CA$-3,219,999
01. Aug 18 Sell Alberto Beeck Individual 24. Jul 18 24. Jul 18 -33,350,000 CA$1.40 CA$-46,689,987
27. Jul 18 Sell Arias Resource Capital Management LP Company 24. Jul 18 24. Jul 18 -33,350,000 CA$1.40 CA$-46,689,987
X
Management checks
We assess Largo Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Largo Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LGO News

Simply Wall St News

Boasting A 75% Return On Equity, Is Largo Resources Ltd (TSE:LGO) A Top Quality Stock?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Over the last twelve months Largo Resources has recorded a ROE of 75%. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Largo Resources Ltd (TSE:LGO) Attractive At This PE Ratio?

Largo Resources Ltd (TSE:LGO) trades with a trailing P/E of 23.6x, which is higher than the industry average of 10.9x. … While this makes LGO appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio. … View our latest analysis for Largo Resources

Simply Wall St -

Should You Buy Largo Resources Ltd (TSE:LGO) Now?

Largo Resources appears to be overvalued according to my relative valuation model. … Since Largo Resources’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. … LGO’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

Is Largo Resources Ltd's (TSE:LGO) Balance Sheet A Threat To Its Future?

Given that LGO is not presently profitable, it’s vital to evaluate the current state of its operations and pathway to profitability. … With this rise in debt, LGO's cash and short-term investments stands at CA$758.00K for investing into the business. … Looking at LGO’s most recent CA$94.08M liabilities, the company is not able to meet these obligations given the level of current assets of CA$32.21M, with a current ratio of 0.34x below the prudent level of 3x.

Simply Wall St -

Want To Invest In Largo Resources Ltd (TSE:LGO)? Here's How It Performed Lately

After reading Largo Resources Ltd's (TSX:LGO) latest earnings update (30 September 2017), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … See our latest analysis for Largo Resources Did LGO's recent earnings growth beat the long-term trend and the industry? … For Largo Resources, its latest trailing-twelve-month earnings is -CA$21.77M, which, in comparison to the prior year's level, has become less negative.

Simply Wall St -

Should You Be Content With Largo Resources Ltd's (TSX:LGO) 80% Earnings Growth?

After reading Largo Resources Ltd’s (TSX:LGO) latest earnings update (30 September 2017), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … I prefer to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … For Largo Resources, the most recent earnings -CA$22M, which, in comparison to the previous year’s figure, has become less negative.

Simply Wall St -

Why Largo Resources Ltd's (TSX:LGO) Investor Composition Impacts Your Returns

This level of insider ownership has been found to have a negative impact on companies with consistently low PE ratios (underperformers), while it has been positive in the case of high PE ratio firms (outperformers). … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … Institutional ownership level and composition in LGO is not high nor active enough to significantly impact its investment thesis.

Simply Wall St -

LGO Company Info

Description

Largo Resources Ltd., a natural resource development and exploration company, engages in the acquisition, exploration, and development of mining and exploration properties located in Brazil and Canada. The company primarily explores for vanadium, iron, tungsten, molybdenum, chromite, palladium, and platinum group metals. Its flagship project is the Maracás Menchen Mine that consists of 18 concessions covering an area of 17,690.45 hectares located in Bahia State, Brazil. The company was formerly known as Consolidated Kaitone Holdings Ltd. and changed its name to Largo Resources Ltd. in June 2004. Largo Resources Ltd. was incorporated in 1988 and is headquartered in Toronto, Canada.

Details
Name: Largo Resources Ltd.
LGO
Exchange: TSX
Founded: 1988
CA$1,185,142,421
529,081,438
Website: http://www.largoresources.com
Address: Largo Resources Ltd.
55 University Avenue,
Suite 1101,
Toronto,
Ontario, M5J 2H7,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX LGO Common Shares The Toronto Stock Exchange CA CAD 09. Mar 1990
OTCPK LGOR.F Common Shares Pink Sheets LLC US USD 09. Mar 1990
DB LR81 Common Shares Deutsche Boerse AG DE EUR 09. Mar 1990
DB LR81 NPV (POST REVERSE SPLIT) Deutsche Boerse AG DE EUR 20. Mar 2019
Number of employees
Current staff
Staff numbers
339
Largo Resources employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:35
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/13
Last earnings filing: 2018/11/13
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.