Largo Inc (LGO) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to Largo's Third Quarter 2024 Financial Results Conference Call. (Operator Instructions)

您好，感謝您的支持。歡迎參加 Largo 2024 年第三季財務業績電話會議。（操作員指令）

I would now like to hand the conference over to your speaker today, Alex Guthrie, Director of Investor Relations. Please go ahead.

現在，我想將會議交給今天的發言人、投資者關係總監 Alex Guthrie。請繼續。

Thank you, operator, and thanks to everyone who has joined us for Largo's Third Quarter Financial Results Conference Call. Our Q3 2024 financial statements related MD&A and most recent AIF are available on our website at largoinc.com, as well as on SEDAR+ and EDGAR.

謝謝接線員，也感謝所有參加 Largo 第三季財務業績電話會議的人。我們的 2024 年第三季財務報表相關 MD&A 和最新的 AIF 可在我們的網站 largoinc.com 以及 SEDAR+ 和 EDGAR 上查閱。

Before we proceed, please note that some information discussed today will include forward-looking statements and non-IFRS measures. Please refer to the cautionary notes and non-GAAP section of the company's latest MD&A, financial statements, and AIF, which are all available online. Additionally, all figures mentioned are in US dollars, unless otherwise stated.

在我們繼續之前，請注意今天討論的一些資訊將包括前瞻性陳述和非國際財務報告準則指標。請參閱該公司最新的 MD&A、財務報表和 AIF 中的警示說明和非 GAAP 部分，這些內容均可在線上查閱。此外，除非另有說明，所有提及的數字均為美元。

Today's speakers include Daniel Tellechea, Interim CEO and Director; Celio Pereira, CEO of Largo Brazil; David Harris, CFO; and Francesco D'Alessio, CEO and President of Largo Clean Energy.

今天的發言者包括臨時執行長兼董事 Daniel Tellechea； Largo Brazil 執行長 Celio Pereira；大衛‧哈里斯（David Harris），財務長；以及 Largo Clean Energy 執行長兼總裁 Francesco D'Alessio。

Following the prepared remarks, we will open the call to questions. Please limit your questions to two and requeue if you have further inquiries to allow everyone a chance to participate.

準備好的發言結束後，我們將開始提問。請將您的問題限制為兩個，如果您還有其他疑問，請重新排隊，以便每個人都有機會參與。

I will now turn the call over to Daniel.

現在我將電話轉給丹尼爾。

Thank you, Alex, and good morning, everyone. Thank you for joining us today to discuss our third quarter results. In Q3, Largo continued to make positive strides on several fronts, and I am pleased to highlight a few areas where we are seeing real progress.

謝謝你，亞歷克斯，大家早安。感謝您今天加入我們討論我們的第三季業績。在第三季度，Largo 在多個方面繼續取得積極進展，我很高興地強調我們看到真正進展的幾個領域。

First, we delivered our highest quarterly vanadium production in seven quarters, producing 3,072 tonnes, up 42% from Q3 last year. Additionally, we saw another strong quarter in ramping up our ilmenite production, contributing to our efforts in diversifying revenues at Largo.

首先，我們實現了七個季度以來的最高季度釩產量，產量為 3,072 噸，比去年第三季增長 42%。此外，我們在本季度又實現了鈦鐵礦產量的強勁成長，為我們在拉爾哥實現收入多元化的努力做出了貢獻。

Largo's cost improvements have been equally important during the quarter. We reduced our operating cost by 31%, allowing us to maintain a competitive position within the vanadium sector. And as announced, our vanadium supply agreement, which unlocks approximately $23.5 million of additional liquidity from our vanadium inventories upon delivery, now enables us to strategically manage our inventory while delivering, still meeting our ongoing and future sales commitments -- sorry.

本季度，Largo 的成本改進同樣重要。我們將營運成本降低了31％，從而讓我們在釩行業保持競爭地位。正如宣布的那樣，我們的釩供應協議在交貨時從我們的釩庫存中解鎖了約 2,350 萬美元的額外流動資金，現在使我們能夠在交貨的同時戰略性地管理我們的庫存，同時仍然履行我們當前和未來的銷售承諾 - 抱歉。

In terms of our commercial strategy, we have taken decisive steps to realign our sales approach to better navigate together a challenging market environment. In September, Francesco D'Alessio was promoted to Chief Commercial Officer, bringing a wealth of industry experience and strategic vision to our sales leadership. With Francesco's expertise, we are implementing a refreshed sales strategy aimed at optimizing inventory, following stronger customer relationships, and position in Largo as a trusted and reliable supplier in both the vanadium and the ilmenite market.

在商業策略方面，我們已採取果斷措施重新調整銷售方式，以更好地共同應對充滿挑戰的市場環境。9月，Francesco D'Alessio 晉升為首席商務官，為我們的銷售領導層帶來了豐富的行業經驗和策略眼光。憑藉 Francesco 的專業知識，我們正在實施全新的銷售策略，旨在優化庫存，建立更牢固的客戶關係，並在拉哥成為釩和鈦鐵礦市場值得信賴和可靠的供應商。

Looking forward, our recently announced technical report highlights update supports Largo's long-term potential with a 67% increase in mineral reserves and a 64% increase in mineral resources, expanding our mine life to 2054. This strengthened resources base paired with our production and cost initiatives sets the stage for future value creation going forward.

展望未來，我們最近發布的技術報告重點更新支持 Largo 的長期潛力，礦產儲量增加 67%，礦產資源增加 64%，將我們的礦山壽命延長至 2054 年。加強的資源基礎與我們的生產和成本措施相結合，為未來的價值創造奠定了基礎。

With that, I will hand it over to Celio to discuss our operational progress in more detail.

說完這些，我將交給 Celio 更詳細地討論我們的營運進度。

Thank you, Daniel, and good morning, everyone. This quarter, our team's hard work paid off as we reached a significant production milestone. In Q3, we produced 3,072 tonnes for the of V2O5 equivalent, a testament to the effectiveness of the operational enhancements we put in place earlier this year.

謝謝你，丹尼爾，大家早安。本季度，我們團隊的辛勤工作得到了回報，因為我們達到了一個重要的生產里程碑。第三季度，我們生產了 3,072 噸五氧化二釩，證明了我們今年稍早實施的營運改善措施的有效性。

Our global V2O5 recovery rate also improved to 81.1%, up from 76.9% last year. On the mining side, we achieved a 34% increase in total ore mined compared to Q3 2023, reaching 600,000 tonnes. Those improvements highlight the changes we've made to enhance processing efficiencies and address variability in magnetic and V205 ore grades.

我們的全球 V2O5 回收率也從去年的 76.9% 提高到 81.1%。在採礦方面，與 2023 年第三季相比，我們的礦石開採總量增加了 34%，達到 60 萬噸。這些改進凸顯了我們為提高加工效率和解決磁性和 V205 礦石品位的變化而做出的改變。

Our operations are as efficient as possible while maintaining high safety environmental standards. Ilmenite production also saw strong gains, reaching 16,383 tonnes in Q3, an increase of 90% over the previous quarter.

我們的營運盡可能高效，同時維持高安全環境標準。鈦鐵礦產量也大幅成長，第三季達到 16,383 噸，較上一季成長 90%。

Finally, to maintain optimal operational continuity, we've moved our annual kiln maintenance to Q4 to coincide with the upcoming rainy season, minimizing the impact of any weather-related disruptions. And consequently, Q4 production is expected to be impacted by the maintenance period, resulting in lower production levels and higher operating costs for the quarter. However, we remain confident in our ability to meet our full year 2024 guidance for production, costs, and sales.

最後，為了保持最佳的營運連續性，我們將年度窯爐維護移至第四季度，以配合即將到來的雨季，最大限度地減少任何與天氣相關的干擾的影響。因此，預計第四季度的生產將受到維護期的影響，導致本季的生產水準下降和營運成本上升。不過，我們仍有信心實現 2024 年全年的生產、成本和銷售目標。

Before concluding, I'd like to highlight that our third quarter results reflect substantial progress in production and cost management; however, we remain focused on further optimizing our vanadium and ilmenite operations. Largo is still in the process of a broader turnaround initiative aimed at driving consistent improvements across the mine. This includes enhancing operational efficiency, advancing silica control measures, and continuing recovery optimizations in our ilmenite plant. While we have made meaningful strides, we remain committed to further progress as we work towards fully realizing our operational goals and fostering a culture of continuous improvement across our team.

最後，我想強調一下，我們的第三季業績反映了生產和成本管理的重大進展；然而，我們仍然專注於進一步優化我們的釩和鈦鐵礦業務。拉爾哥目前仍處於更廣泛的轉型計畫之中，旨在推動整個礦場的持續改善。這包括提高營運效率、推進矽控制措施、以及繼續優化我們的鈦鐵礦工廠的回收率。雖然我們已經取得了有意義的進步，但我們仍致力於取得進一步的進步，努力全面實現我們的營運目標並在整個團隊中培養持續改進的文化。

With that, I will now pass it over to David Harris for the financial results.

說完這些，我現在將財務結果交給戴維哈里斯 (David Harris)。

In Q3 2024, Largo reported revenues of $29.9 million, including $27.2 million from vanadium sales and $2.7 million from ilmenite sales. Revenue was impacted by lower vanadium prices and reduced sales volumes with the average benchmark price per pound of V205 in Europe down to $5.71 compared to $8.03 in Q3 2023.

2024 年第三季度，Largo 報告的收入為 2,990 萬美元，其中釩銷售收入 2,720 萬美元，鈦鐵礦銷售收入為 270 萬美元。收入受到釩價下跌和銷售量下降的影響，歐洲 V205 每磅平均基準價格從 2023 年第三季的 8.03 美元降至 5.71 美元。

Operating costs decreased from $44 million in Q3 2023 to $29.5 million this quarter, a 31% reduction from Q3 2023. Cash operating costs, excluding royalties, were $3.12 per pound sold, a 43% reduction from last year. As Celio highlighted just now, these results underscore our continued focus on cost management, and I'd like to recognize the hard work from our teams who played a crucial role in realizing these savings.

營運成本從 2023 年第三季的 4,400 萬美元減少至本季的 2,950 萬美元，比 2023 年第三季減少了 31%。不包括特許權使用費的現金營運成本為每磅 3.12 美元，比去年減少了 43%。正如 Celio 剛才強調的那樣，這些結果強調了我們對成本管理的持續關注，我要感謝我們的團隊的辛勤工作，他們在實現這些節約方面發揮了關鍵作用。

The net loss for Q3 was $10.1 million, including nonrecurring items of $3.3 million, which is an improvement over the net loss of $11.9 million in Q3 2023. Adjusted EBITDA for our mining operations was $2.4 million in Q3 2024 compared to $2.7 million in Q3 2023, reflecting the impact of the vanadium market conditions, but also highlighting ongoing cost management efforts.

第三季的淨虧損為 1,010 萬美元，其中包括 330 萬美元的非經常性項目，較 2023 年第三季的 1,190 萬美元淨虧損有所改善。2024 年第三季度，我們採礦業務的調整後 EBITDA 為 240 萬美元，而 2023 年第三季為 270 萬美元，這反映了釩市場狀況的影響，同時也凸顯了持續的成本管理工作。

At the close of the quarter, we had a cash balance of $30.4 million and a net working capital surplus of $46.7 million. While the recently announced vanadium supply agreement is expected to contribute approximately $23.5 million upon delivery of material between Q4 this year and Q1 next year. We continue to focus on managing liquidity carefully to support Largo's financial flexibility.

截至本季末，我們的現金餘額為 3,040 萬美元，淨營運資本盈餘為 4,670 萬美元。而最近宣布的釩供應協議預計將在今年第四季至明年第一季之間交付材料時貢獻約 2,350 萬美元。我們將繼續專注於謹慎管理流動性，以支持 Largo 的財務彈性。

In addition, we are working closely with a group of banks to explore restructuring options for our existing loan facilities. These discussions are aimed at optimizing our capital structure to ensure that we're well prepared to navigate current market conditions with a continued focus on managing liquidity carefully to support Largo's financial flexibility.

此外，我們正在與一些銀行密切合作，探討現有貸款的重組方案。這些討論旨在優化我們的資本結構，以確保我們做好充分準備應對當前的市場狀況，並繼續專注於謹慎管理流動性，以支持 Largo 的財務靈活性。

Before I hand it over to Francesco, I'll reiterate that we remain committed to achieving sustained cost improvements at the Maracas Menchen Mine. We are closely monitoring all operational expenses as part of our broader strategy to optimize performance and enhance profitability, and we look forward to updating you on our continued progress in the quarters to come.

在將其交給弗朗西斯科之前，我要重申，我們仍然致力於實現 Maracas Menchen 礦場的持續成本改進。作為優化績效和提高盈利能力的更廣泛策略的一部分，我們正在密切監控所有營運費用，我們期待在未來幾季向您通報我們的持續進展。

With that, I'll turn it over to Francesco for an update on our sales and commercial activities.

接下來，我將把主題轉交給 Francesco，以報告我們的銷售和商業活動的最新情況。

Thank you, David, and welcome, everyone, to the call. It's a privilege to join today as Largo's Chief Commercial Officer and provide an update on our commercial activities for Q3 2024, along with a brief update on Largo Clean Energy.

謝謝你，大衛，歡迎大家參加電話會議。今天，我很榮幸能夠以 Largo 首席商務官的身份加入我們的團隊，並提供我們 2024 年第三季商業活動的最新情況以及 Largo 清潔能源的簡要更新。

In Q3 '24, we recorded V2O5 equivalent sales of 1,961 tonnes, which includes 124 tonnes of purchased material. This represents an 18% decrease from Q3 2023, driven primarily by softer spot demand in key markets, particularly Asia and Europe, where we continue to face significant headwinds affecting vanadium demand, especially within the steel sector.

24 年第三季度，我們記錄的 V2O5 當量銷售量為 1,961 噸，其中包括 124 噸購買材料。這比 2023 年第三季下降了 18%，主要原因是主要市場（尤其是亞洲和歐洲）的現貨需求疲軟，我們繼續面臨影響釩需求的重大阻力，尤其是在鋼鐵業。

Low prices and an oversupply in the Chinese market have contributed to a more challenging supply-demand balance, pressuring prices across regions. The average benchmark price per pound of V2O5 in Europe was $5.71 in Q3, down from $8.03 in the same period last year, reflecting these ongoing market challenges. In response to these conditions, we're refining our sales approach to strengthen direct sales to end users and expand our reach, particularly in North America.

中國市場的低價和供應過剩導致供需平衡更加困難，對各地區價格造成壓力。歐洲第三季每磅五氧化二釩的平均基準價格為 5.71 美元，低於去年同期的 8.03 美元，反映出持續存在的市場挑戰。為了應對這些情況，我們正在改進銷售方式，加強對最終用戶的直接銷售並擴大我們的覆蓋範圍，特別是在北美。

With the recent appointment of Randy Doyle, an industry leader with deep vanadium experience to our commercial team, we're enhancing our sales efforts and building closer customer relationships, solidify Largo's position as a trusted supplier of vanadium and ilmenite products. Our recent contract campaign for both high purity and ferrovanadium products has been successful, reinforcing our strategy to grow market share and secure stable long-term partnerships.

我們最近任命了具有豐富釩經驗的行業領袖 Randy Doyle 加入我們的商業團隊，這將加強我們的銷售力度並建立更緊密的客戶關係，鞏固 Largo 作為釩和鈦鐵礦產品值得信賴的供應商的地位。我們最近針對高純度和釩鐵產品的合約活動取得了成功，強化了我們擴大市場份額和建立穩定的長期合作夥伴關係的策略。

Additionally, given current geopolitical factors, our increased presence in North America further positions Largo as a key supplier to this market, which is becoming increasingly crucial amidst shifting global dynamics. While we continue to see softness in demand in Europe and expect this to extend into 2025, we are encouraged by early signs of recovery in the US market, which has been less affected by low-priced vanadium supply from China. This trend is reflected in the growing interest from US-based end users, particularly in sectors such as aerospace and defense, where demand is rising for reliable and secure sources of vanadium supply. These factors, along with the narrowing production supply gap globally, position Largo favorably in the current environment.

此外，考慮到當前的地緣政治因素，我們在北美的業務不斷增加，進一步使 Largo 成為該市場的關鍵供應商，而這在全球局勢不斷變化的情況下變得越來越重要。儘管我們看到歐洲的需求持續疲軟，並預計這種趨勢將持續到 2025 年，但我們對美國市場復甦的早期跡象感到鼓舞，美國市場受中國低價釩供應的影響較小。這一趨勢反映在美國終端用戶日益增長的興趣上，特別是航空航太和國防等領域，這些領域對可靠和安全的釩供應來源的需求正在上升。這些因素加上全球生產供應缺口的縮小，使得拉爾哥在當前環境下處於有利地位。

On the ilmenite front, we achieved a strong performance in Q3 with sales totaling 19,572 tonnes, a 60% increase over Q2 2024. Demand for ilmenite continues to grow, and we remain optimistic that this trend will support revenue growth as we build a stable diversified revenue stream alongside our vanadium business.

在鈦鐵礦方面，我們在第三季取得了強勁的業績，總銷量達到 19,572 噸，比 2024 年第二季成長了 60%。鈦鐵礦的需求持續成長，我們仍然樂觀地認為，隨著我們在釩業務的同時建立穩定的多元化收入來源，這一趨勢將支持收入成長。

Turning to Largo Clean Energy. We're advancing discussions with Striton Energy towards a potential joint venture. This partnership will leverage Largo's expertise of vanadium flow battery technology alongside Striton manufacturing and market reach, positioning us strongly within the energy storage sector, particularly in North America where demand for grid-scale solutions is expanding.

轉向 Largo 清潔能源。我們正在與 Striton Energy 推進建立合資企業的討論。此次合作將利用 Largo 在釩液流電池技術方面的專業知識以及 Striton 的製造和市場覆蓋範圍，使我們在能源儲存領域佔據強勢地位，特別是在對電網規模解決方案的需求不斷擴大的北美。

We remain focused on maximizing LCE's role in Largo's overall growth strategy, ensuring that our technology aligns with the rising demand for reliable and sustainable energy storage solutions. While we recognize the challenges in the vanadium market, we're optimistic about future demand prospects, bolstered by recent regulatory developments, a recovering US market, and increasing demand from key sectors. Our team's strategic focus on efficient production and sales management keeps us well-positioned to meet these emerging opportunities.

我們將繼續專注於最大限度地發揮 LCE 在 Largo 整體成長策略中的作用，確保我們的技術滿足對可靠和永續能源儲存解決方案日益增長的需求。雖然我們認識到釩市場面臨的挑戰，但我們對未來的需求前景持樂觀態度，這得益於近期監管發展、美國市場的復甦以及關鍵行業需求的不斷增長。我們團隊的策略重點是高效的生產和銷售管理，這使我們能夠很好地應對這些新興機會。

With that, I'll turn it back to Daniel for closing remarks.

最後，我將請丹尼爾作最後發言。

Thank you, Francesco. As we head into Q4, Largo remains committed to improving operational efficiency, reducing costs, and diversifying our revenue streams. Despite the current headwinds in the vanadium prices, our recent technical report update and strategic agreements position us to well deliver value in the quarters ahead.

謝謝你，弗朗西斯科。進入第四季度，Largo 仍致力於提高營運效率、降低成本並實現收入來源多元化。儘管目前釩價格面臨阻力，但我們最近的技術報告更新和策略協議使我們能夠在未來幾季實現價值。

Thank you to our entire team for their efforts and our shareholders for their support. We look forward to sharing our continued progress in the future.

感謝我們整個團隊的努力和股東的支持。我們期待未來分享我們不斷取得的進步。

With that, we will now open the call for questions.

現在，我們將開始提問。

(Operator Instructions) Heiko Ihle, H.C. Wainwright.

(操作員指示) Heiko Ihle，H.C.溫賴特。

You state that recent data indicated that the oversupply gap is gradually narrowing and that there is some early indications of maybe a touch more favorable market dynamics. Where exactly is this demand coming from? I mean earlier on this call, you mentioned the Americas, if I heard you correctly. And we're now halfway through Q4. Is this impact going to be showing up in the Q4 results? Or is this something that's maybe more of a 2025 thing?

您表示，最近的數據表明，供應過剩的差距正在逐步縮小，而且有一些早期跡象表明市場動態可能略微有利。這個需求到底來自哪裡？我的意思是，如果我沒聽錯的話，在這次通話早些時候，您提到了美洲。現在我們已經度過了第四季的一半時間。這個影響會在第四季的業績中反映出來嗎？或者這也許更像是 2025 年的事？

Francesco, can you --

弗朗西斯科，你能--

Yes. Yes. So it's going to mainly show in next year's contracts, right? We're in the midst of contract season right now. We're seeing the demand from both -- from mainly the aerospace sector. As you probably know, the US market has several restrictions, and depending on the origin of the products, there's antidumping on Chinese ferrovanadium, antidumping on the South African ferrovanadium, and high duties on Korean ferrovanadium, which puts Largo's ferrovanadium in advantageous position for freight contracts for the steel sector in the US. And then in addition to that, there is high demand -- much higher demand from the forecast that we're receiving from our aerospace customers, which will be reflected in 2025 contracts for next year.

是的。是的。所以這主要會體現在明年的合約中，對嗎？我們現在正處於合約季。我們看到了來自兩方面的需求——主要來自航空航太領域。您可能知道，美國市場有多項限制，根據產品的原產地，中國釩鐵面臨反傾銷，南非釩鐵面臨反傾銷，而韓國釩鐵則面臨高額關稅，這使得 Largo 的釩鐵在美國鋼鐵業的貨運合約中處於有利地位。除此之外，需求也很高——根據我們從航空航太客戶那裡得到的預測，需求要高得多，這將反映在明年的 2025 年合約中。

Got it. And then just a clarification on that supply -- that vanadium supply agreement that you signed a couple of weeks ago. I mean, it's going to sound like a fairly large-scale thing. Just talk to me a little bit about in your experience, how are prices for these agreements when compared to spot pricing? Is this a bit like in the uranium space where these agreements tend to trade at a premium since people want to ensure supply? Or is this just more or less market-based? Maybe not even the specific agreement just in general?

知道了。然後只是對供應進行澄清——幾週前簽署的釩供應協議。我的意思是，這聽起來像是一件規模相當大的事情。請根據您的經驗跟我談談這些協議的價格與現貨價格相比如何？這是否有點像鈾領域，由於人們想確保供應，這些協議往往以溢價交易？還是這或多或少是基於市場的？也許甚至沒有具體的協議，只是一般性的協議？

You mean the agreement we signed recently for $23.5 million?

您是指我們最近簽署的價值 2,350 萬美元的協議嗎？

Yes. I mean that's obviously one agreement, but there is presumably more of those coming.

是的。我的意思是，這顯然是一項協議，但可能會有更多協議。

Well, at this particular time, this is the only agreement we have planned for something like this. And this will complement our shipments for Q4, where out of the 2,100 tonnes in this agreement, we're planning to ship a good chunk of that quantity during the fourth quarter. And the rest -- so that will complement our sales and shipments for the fourth quarter. And this is -- Heiko, this is the only agreement we have in place now. The rest of the agreements for 2025 will be standard sales to the steel industry and defense and aerospace industries. It will be normal agreement. Will that respond your question?

嗯，在目前這個特定時期，這是我們為這樣的事情計劃的唯一協議。這將補充我們第四季度的出貨量，在該協議規定的 2,100 噸數量中，我們計劃在第四季度出貨其中的很大一部分。其餘的—這將補充我們第四季的銷售和出貨量。這是——Heiko，這是我們目前唯一的協議。2025 年的其餘協議將針對鋼鐵業、國防和航空航太工業進行標準銷售。這將是正常的協議。這能回答你的問題嗎？

Yes. No, that's pretty good. And with that, I think I will get back in queue.

是的。不，那非常好。說完這些，我想我會重新回到隊列中。

Andrew Wong, RBC Capital Markets.

加拿大皇家銀行資本市場部的 Andrew Wong。

Can you just provide maybe a bit of an outlook on where you think prices could land in 2025, given some of the improvements that you've worked on?

考慮到您所進行的一些改進工作，您能否對 2025 年的價格可能達到的水平進行一些預測？

Francesco, can you take that question?

弗朗西斯科，你能回答這個問題嗎？

Yes, I can take that, Daniel. Look, it's obviously a tricky question talking about pricing forecasts, right? If we had a crystal ball, obviously -- but for sure, prices in the market, for sure, you're going to see a 2-tiered market. You're going to see higher prices in the US for the reasons that I mentioned earlier, right, mainly driven by the fact that it's limited in terms of origins that can come into the US market. So that is already being reflected.

是的，我可以接受，丹尼爾。看，談論價格預測顯然是一個棘手的問題，對吧？如果我們有一個水晶球，顯然——但可以肯定的是，市場價格肯定會，你會看到一個兩層市場。正如我之前提到的原因，你會看到美國的價格上漲，主要是因為進入美國市場的原產地有限。這已經反映出來了。

If you look at the current CRU index versus Metal Bulletin index, you're seeing a disparity between the two markets. And then obviously, the bulk of the aerospace volume is obviously done at a premium to the industry, right? So we are expecting a faster recovery in prices in the US vis-a-vis Europe or the rest of the world, right?

如果您查看目前的 CRU 指數與金屬導報指數，您會發現兩個市場之間存在差異。那麼顯然，航空航天產量的大部分顯然是以高於行業的價格完成的，對嗎？所以我們預計美國的價格復甦速度會比歐洲或世界其他地區更快，對嗎？

And a little bit on costs for 2025, given some of the operational efficiencies, improvements that you've worked on?

考慮到您所進行的一些營運效率和改進工作，您能談談 2025 年的成本嗎？

Celio, can you take that question?

Celio，你能回答這個問題嗎？

Yes, for sure. We keep moving our turnaround and increasing our efficiencies at the mine. We are now having a very strong look at logistics and good supply. So we expect that the average cost of 2025 should be having the lower direction based -- compared to this year.

是的，當然。我們不斷改善礦井狀況並提高效率。我們現在非常重視物流和良好的供應。因此，我們預計 2025 年的平均成本應該會比今年更低。

Andrew, on the cost side, we will continue with this trend of trying to finalize analysis of each of the contracts, concentrating ourselves on logistics. So there is still a way to go in this turnaround process that we started months ago. So we expect that the cost of production will continue to take the benefits of those adjustments and those analysis for next year.

安德魯，在成本方面，我們將繼續這種趨勢，嘗試完成對每個合約的分析，並專注於物流。因此，我們幾個月前開始的這個扭轉局面的過程還有很長的路要走。因此，我們預計明年生產成本將繼續受益於這些調整和分析。

Okay. And just looking out a little bit here, when we look at the mine plan and the resources and like what the deposits look like longer term, the grades come down, Campbell Pit is a lot higher grade. So the best material, I think, that you have in your resource inventory. Does it still make sense to be depleting your best resource at relatively minimal profitability and prices today?

好的。稍微看一下，當我們查看礦山規劃和資源，以及礦床的長期前景時，品位會下降，而坎貝爾礦坑的品位要高得多。所以我認為，最好的材料是你的資源清單中擁有的。如今以相對最低的獲利能力和價格消耗你最好的資源仍然有意義嗎？

Can you take that question, Celio?

你能回答這個問題嗎，西利奧？

Yes. Thank you, Daniel. So we have added two new pits to our reserve base that we didn't have before. Campbell is our current pit that we mine. Of course, we have seen weaker prices in this last year. But our operational -- our mining plan for Campbell goes until 2031, 2032. So it's a world-class asset with very high grades for V2O5. And we believe that it's strategic to keep mining Campbell for now and for the next years until we are prepared to move to the lower-grade assets and reserves pits that we have in Maracas.

是的。謝謝你，丹尼爾。因此，我們在儲備基地增加了兩個以前沒有的新坑。坎貝爾是我們目前開採的礦坑。當然，去年我們看到價格有所下跌。但我們對坎貝爾的採礦計畫將持續到 2031 年、2032 年。所以它是一項世界級的資產，V2O5 的品味非常高。我們認為，現在和未來幾年繼續開採坎貝爾具有戰略意義，直到我們準備好轉移到馬拉卡斯的低品位資產和儲量礦坑。

Gordon Lawson, Paradigm Capital.

戈登·勞森（Gordon Lawson），Paradigm Capital。

Sorry, I was on mute. So the beat on cash cost this quarter was pretty significant and really stands out. What should we expect for -- you've already talked about what to expect in terms of beating this year, but how much should we add to cost for the ilmenite production on a per pound basis?

抱歉，我把音量調至靜音了。因此，本季現金成本的超出預期相當顯著，而且確實引人注目。我們應該期待什麼——您已經談到了今年的預期，但是我們應該在每磅鈦鐵礦生產成本上增加多少？

Celio, can you take that question?

Celio，你能回答這個問題嗎？

Yes. If we consider that ilmenite is a new revenue stream that we still in the ramp-up phase and optimizing recoveries and production. I believe when we reach our full capacity at ilmenite and optimize all of this process, I think we'll be talking -- we'll be seeing $0.30 to $0.50 range in terms of vanadium production costs.

是的。如果我們認為鈦鐵礦是一個新的收入來源，我們仍然處於上升階段並優化回收和生產。我相信，當我們的鈦鐵礦產能達到最大，並優化整個流程時，我們將看到釩生產成本在 0.30 美元到 0.50 美元之間。

That's quite cheap. So on that front then, the $22 million investment to double the production of ilmenite seems like a rather low threshold. So what parameters are behind the sanctioning decision going in terms of lining up customers versus return on investment?

那真是相當便宜。因此從這個方面來看，投資 2,200 萬美元使鈦鐵礦產量翻倍似乎是一個相當低的門檻。那麼，從吸引客戶和投資回報的角度來看，批准決定背後的參數是什麼？

Celio, can you take that question? And most of this is in the technical reporting. So we can get the information from that.

Celio，你能回答這個問題嗎？其中大部分內容都包含在技術報告中。所以我們可以由此獲取資訊。

Yes. Sorry, I didn't understand the investment side of the question. Can you please repeat?

是的。抱歉，我不明白問題的投資面。您能再說一次嗎？

Well, it seems rather inexpensive to double the production. So I'm just wondering if this is an issue of lining up customers for the product or whether there's more to it beyond a simple ROI?

嗯，看來將產量增加一倍是相當便宜的。所以我只是想知道這是否是為產品吸引客戶的問題，或者除了簡單的投資回報率之外還有其他問題？

Yes. The strategy to double the production is linked with the vanadium side as well because the ilmenite is produced from our non-magnetic tailings from our current milling that produces the vanadium concentrate. So the strategy is linked with a 20% -- actually, it's 33% expansion in our current kiln happening first.

是的。產量翻番策略也與釩有關，因為鈦鐵礦是從我們目前生產釩精礦的磨礦中產生的非磁性尾礦中產出的。因此該策略與 20% 相關 — — 實際上是先將我們目前的窯爐擴大 33%。

And then we will have, of course, an upgrade in the milling and crushing together with this kiln expansion. And after that, we will have more material to process and do the full expansion of the ilmenite. So that's more because of the vanadium strategy, we also link this ilmenite strategy ramp-up and expansion in the future.

然後，我們當然會隨著窯爐的擴建，對銑削和破碎進行升級。此後，我們將有更多的材料進行加工，並對鈦鐵礦進行全面擴張。所以這更多的是因為釩策略，我們也將這項鈦鐵礦策略的提升與未來的擴張連結起來。

So the grades of the -- hits beyond the Campbell Pit? That's obviously playing much more of a role than lining up the customers as I stated?

那麼，坎貝爾礦坑以外地區的礦石品質如何？這顯然比我所說的排隊顧客發揮的作用更大？

Yes, correct.

是的，正確。

(Operator Instructions) Gary Bryck, Northern Insights Asset Management.

(操作員指示) Gary Bryck，Northern Insights Asset Management。

Could you tell me how much debt on the balance sheet is attributable to the Majorca storage facility? Could you discuss how it's working and whether you're generating any revenue from it? And could you compare that vanadium technology to other battery technologies that you may be competing with? And I have one other question, which I've asked for the last five years. Could you discuss the elasticity of demand for vanadium?

您能告訴我資產負債表上有多少債務歸因於馬略卡島儲存設施嗎？您能否討論一下它是如何運作的以及您是否從中獲得收入？您能否將釩技術與您可能競爭的其他電池技術進行比較？我還有一個問題，這個問題我過去五年來一直在問。您能討論一下釩的需求彈性嗎？

Can you take that one, Francesco?

你能接受這個嗎，弗朗西斯科？

Yes. So elasticity for demand for vanadium, are you referring to a specific industry? Or what would you like me to elaborate on?

是的。那麼，您提到的釩需求彈性是指某個特定的產業嗎？或者您希望我詳細說明什麼？

Well, if you understand elasticity, maybe you could explain how prices would change if you, for example, reduced your production of vanadium.

好吧，如果你了解彈性，也許你可以解釋一下如果你減少釩的產量，價格會如何變化。

Well, most of the vanadium market pricing, obviously driven by the two largest producing countries, right, which is Russia and China. So you can understand, obviously, the current geopolitical situation has affected one of those origins and then the current softness of the market in China has caused the price to drop this year, right?

嗯，大部分釩市場定價顯然是由兩個最大的生產國推動的，也就是俄羅斯和中國。因此，您顯然可以理解，當前的地緣政治局勢已經影響其中一個產地，而當前中國市場的疲軟又導致今年的價格下跌，對嗎？

The exports from China have drastically increased. So if you look at the supply/demand dynamics are drastically affected by the exported units from the Chinese market, right? But our strategic positioning within the US market is why we've diversified our strategy in going after a region that is not subject to those effects of the Chinese units, right?

中國的出口大幅成長。所以如果你看一下供應/需求動態，你會發現中國市場出口單位的銷售量極大地影響了供應/需求，對嗎？但是，我們在美國市場內的策略定位就是為什麼我們要採取多元化策略，選擇不受中國企業影響的地區，對嗎？

Maybe we can take this question offline. I don't think you understand it. Could you discuss how much debt is on your balance sheet attributable to the Majorca storage facility? Could you discuss how it's functioning? Could you discuss whether you're generating any revenue from it, whether you're generating any potential sales of new storage facilities? And could you discuss your vanadium storage technology to other storage technologies?

也許我們可以將這個問題離線。我想你沒明白。您能否討論一下您的資產負債表上有多少債務歸因於馬略卡島儲存設施？你能討論一下它是如何運作的嗎？您能否討論一下您是否從中獲得了任何收入，是否創造了任何新儲存設施的潛在銷售？您能討論一下您的釩儲存技術與其他儲存技術的差異嗎？

Yes. I'll take the first part of the question --

是的。我來回答問題的第一部分--

I'll take the second one.

我要第二個。

Yes. Just on the debt. There's no debt on the balance sheet that relates to the battery storage facility in Majorca. That's all been self-funded. So there's no debt attributable to that. In terms of the project --

是的。只是關於債務。資產負債表上沒有與馬略卡島電池儲存設施相關的債務。這些都是自籌資金的。因此不存在由此產生的債務。從專案角度來看--

Didn't you borrow $95 million to buy the technology in the first place?

你一開始不是藉了 9500 萬美元來購買這項技術嗎？

No, that's not correct.

不，這不正確。

What is correct?

什麼是正確的？

The IP that we have that was acquired, that was acquired for approximately just over $4 million in 2020, and that was sort of a share in noncash purchase that was done at the time. Any other one -- has just been funding the LCE activities as a whole.

我們擁有的智慧財產權是在 2020 年以約 400 萬美元多一點的價格收購的，這是當時非現金購買的一部分。任何其他人——都只是在為整個 LCE 活動提供資金。

In terms of the delivery of the project, I mean, as you'll note in our MD&A, the final tests and the commissioning activities has not been completed. So the project has not been delivered and such that we have not recognized revenue from delivery of that project as of this time. But perhaps Francesco, you can just comment a bit more in terms of the status of the ramp-up and commissioning of P&L projects.

就專案交付而言，我的意思是，正如您在我們的 MD&A 中註意到的那樣，最終測試和調試活動尚未完成。因此該項目尚未交付，因此截至目前為止我們尚未確認該項目交付的收入。但是，弗朗西斯科，也許您可以就損益項目的提升和調試狀況再多發表一些評論。

Sure. So we replaced the inverter and the transformer. So those activities have been completed, and we're now undergoing the final FAT, factory accepted testing, for the final commissioning of the battery system. So we're in the final stages of final hard commissioning of the system.

當然。因此我們更換了逆變器和變壓器。這些活動已經完成，我們現在正在進行最終的FAT，工廠驗收測試，以進行電池系統的最終調試。因此，我們正處於系統最終硬調試的最後階段。

Okay. I'm sorry, I thought you had this facility running two years ago. So it's a good update for me.

好的。抱歉，我以為你們兩年前就已經運行這個設施了。所以這對我來說是一個很好的更新。

There are no further questions. I will turn the call back over to Alex Guthrie for closing comments.

沒有其它問題了。我將把電話轉回給 Alex Guthrie 進行最後發言。

Thank you, operator. This concludes our Q&A session of the quarterly call. Thank you, everyone, and have a great day. Bye now.

謝謝您，接線生。我們的季度電話會議問答環節到此結束。謝謝大家，祝大家有個愉快的一天。再見了。

Ladies and gentlemen, this concludes the conference for today. We thank you for participating, and we ask that you please disconnect your lines.

女士們、先生們，今天的會議到此結束。感謝您的參與，並請您斷開線路。