Largo Warns Iron Ore Deal May Collapse as U.S. Ferrovanadium Prices Surge on Supply Strains
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Largo Resources ( (TSE:LGO) ) just unveiled an update.
On February 12, 2026, Largo Inc. reported that the purchaser in its previously announced US$56 million iron ore calcine sale has failed to make the initial US$2.9 million payment, originally due January 30 and deferred to the week of February 9, as well as a subsequent US$1.9 million payment due February 16. Largo has issued a notice of non-compliance, granted a cure period to February 20, 2026, and warned it will terminate the agreement and pursue legal remedies if payment is not received, while stressing it has sufficient cash and may seek alternative commercialization options for the material.
The company also highlighted a sharp divergence in global ferrovanadium pricing, noting U.S. FeV prices have jumped about 30% over the past month to roughly $17 per pound, far outpacing a 7–8% increase in Europe and creating a significant U.S. premium driven by structural supply tightness. Largo emphasized that tariffs of 50% on Brazilian-origin vanadium and FeV constrain its ability to ship directly to the U.S., forcing reliance on Canadian conversion capacity under USMCA, and argued that easing these tariffs would let it better supply U.S. steel and high-purity defense markets amid growing demand and constrained alternative supply.
The most recent analyst rating on (TSE:LGO) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Largo Resources stock, see the TSE:LGO Stock Forecast page.
Spark’s Take on TSE:LGO Stock
According to Spark, TipRanks’ AI Analyst, TSE:LGO is a Neutral.
The score is primarily held back by weak financial performance, including ongoing losses and cash flow challenges. Technicals are moderately supportive with positive trend signals, but overbought momentum readings raise near-term risk. Valuation remains constrained by negative earnings and the absence of a dividend yield.
To see Spark’s full report on TSE:LGO stock, click here.
More about Largo Resources
Largo Inc. is a globally recognized producer of high-quality vanadium and ilmenite, sourced from its Maracás Menchen Mine in Brazil, supplying critical materials to steel, aerospace, defense, chemical and energy storage industries. The company is vertically integrated, trades on Nasdaq and the TSX under “LGO,” holds tungsten-related assets in Canada and Brazil, and owns 50% of U.S.-focused vanadium flow battery venture Storion Energy.
Average Trading Volume: 122,308
Technical Sentiment Signal: Sell
Current Market Cap: C$191.6M
Find detailed analytics on LGO stock on TipRanks’ Stock Analysis page.
