Largo Inc.

Good morning, ladies and gentlemen. Welcome to Largo's second quarter 2026 earnings call. This conference is being recorded and the replay will be available at the company's website at largolinc.com. We would like to inform that all attendees will be listening only mode on the conference during the presentation. Questions must be submitted in writing using the Q&A function on the webcast platform. A company will be reviewing the questions received and select a number for management to address. Thank you very much. and MJ&A. Presenting this conference, we have Mr. Alberto Arias, Executive Chairman and Co-Chief Executive Officer, and Mr. Jim Ballantyne, Co-Chief Executive Officer. Now, I will turn the conference over to Mr. Arias and Mr. Ballantyne. Please, you may begin your conference.

Thank you and good afternoon, everyone, and thank you for joining us today. The second quarter show us the work underway across Largo is gaining real momentum. We produced more, sold more, grew revenue, and returned to positive adjusted EBITDA. Just as importantly, the progress we made since the quarter end across our balance sheet, our U.S. commercial position, and our copper PGM initiative has strengthened the business and broadened the opportunities ahead. Let's start with our second quarter operating results. All availability improved during the quarter. Total ore mine increased 46.6% year over year to 712,198 tons, reflecting better mine access and continued improvement in execution. The better ore availability together with improved plant stability helped lift vanadium production 28.5% to 2,900 tons, near the upper end of our quarterly guidance range. For the first half of the year, production reached 5,516 tons at 55.2% from the same period last year. Importantly, our commercial performance kept pace with the improvement in production. Vanadium sales increased 53% to 2,773 tons of vanadium pentoxide equivalent. Elmenite concentrate sales also performed well, increasing 67% to 10,059 tons. The market backdrop also became more supportive. European vanadium pentoxide benchmark averaged $6.03 per pound Up 17.5% year-over-year, European Ferrovanadium prices increased 15.6%, while the average U.S. Ferrovanadium benchmark also rose 45.8%. The stronger pricing flow through our realized revenue per pound sold, which increased to 6.96% from 5.80% in the first quarter and 6.39% a year ago. The combination of higher volumes and better pricing translated directly into our financial results. Revenue increased 68.5% to $44 million, including $42 million from Vanadium and $1.4 million from Illuminate.

Jim? Thanks, Alberto. This is Jim. On the financial front, Adjusted EBITDA returned to positive territory at $2.7 million compared with $34,000 a year ago. Mining operations adjusted EBITDA increased 64.8% to $4.4 million. Cash generation improved as well. Cash provided before working capital items more than tripled to $6.6 million from $2.2 million in the prior year period. Turning to costs, the quarter reflected a combination of higher input prices and increased operating activity as sales volumes grew. Cash operating costs excluding royalties were $5.10 per pound sold, compared with $4.63 a year ago. On an adjusted basis, cash operating costs excluding royalties were $4.12 per pound Thank you very much. and the form of disciplined execution, stable plant performance, and tighter cost management. As production and sales strengthen, our goal is to convert that momentum into better unit economics, margins, and cash generation. On the bottom line, we reported a net loss of $22.7 million. It is important that that result in context. The quarter included significant non-cash items, principally a write-down of vanadium assets and a deferred income tax expense. It also included higher operating, professional, and finance costs. We don't minimize the reported loss, but the return to positive adjusted EBITDA and the improvement in cash provided before working capital adjustments show that the underlying business moved in the right direction.