LARGO TERMINATES PREVIOUSLY ANNOUNCED IRON ORE CALCINE COMMERCIAL AGREEMENT, ADVANCING DISCUSSIONS WITH ALTERNATIVE POTENTIAL BUYERS, AND PROVIDES TARIFFS AND VANADIUM MARKETS UPDATE
Largo Inc. has terminated its previously disclosed iron ore calcine sale agreement and has provided an update on recent developments related to United States tariff authority and on continuing strength across vanadium markets. All amounts expressed are in U.S. dollars.
Highlights
* Iron ore calcine sale agreement terminated following non-receipt of the required initial payment. Largo retains full ownership of the 4.5 million tonnes of calcine iron ore inventory and is advancing discussions with alternative potential buyers. The termination is not expected to have a material impact on the company’s financial position, liquidity or continuing operations.
* Largo is assessing recent developments relating to U.S. tariff authority and assessing its operational flexibility, including its bonded inventories in United States ports, to respond efficiently to potential changes in trade conditions.
* U.S. ferrovanadium prices have continued to strengthen since the company’s Feb. 12 update, further widening the premium over Western Europe.
* Structural supply constraints remain in the U.S. market, including limited conversion capacity and trade-related restrictions affecting certain regions.
Update on iron ore calcine transaction
As previously disclosed in the company’s Feb. 5 and Feb. 12, 2026, press releases, the definitive agreement announced on Jan. 20, 2026, for the sale of up to 4.5 million tonnes of iron ore calcine material was subject to receipt of an initial payment of $2.9-million (U.S.), which was originally due by Jan. 30, 2026.
The company agreed to defer the initial payment until Feb. 9, 2026. Since the payment was not received, the company issued formal notice of non-compliance and provided the counterparty with a cure period through Feb. 20, 2026, to satisfy the outstanding payment obligation.
As the required payment was not received within that cure period, the agreement has been terminated in accordance with its terms. Largo intends to pursue its rights and remedies under the agreement against the counterparty.
No iron ore calcine was delivered under the agreement. Largo retains full ownership of the material, a valuable byproduct generated by its vanadium operations at the Maracas Menchen mine in Brazil. The company is re-engaging with other interested parties.
The termination is not expected to have a material impact on the company’s financial position, liquidity or continuing operations.
Assessment of recent U.S. Supreme Court decisions on tariff authority
Largo is actively assessing the implications of the recent U.S. Supreme Court decision regarding the scope of executive tariff authority and how potential adjustments may affect Brazilian-origin vanadium products, including vanadium pentoxide (V2O5) and ferrovanadium (FeV).
Largo was subject to a 50-per-cent tariff on direct Brazilian imports into the United States, which was struck down by the Supreme Court decision. Recent media reporting has suggested that tariff rates on certain products could be reimposed at rates of 10 to 15 per cent, pending legal and administrative processes.
Even a slight reduction in tariff levels could quickly and significantly affect the U.S. vanadium market. Reducing tariff barriers would improve the competitiveness of Largo’s Brazilian-origin material, boost Largo’s supply flexibility in the United States and help address tight market conditions.
Readiness of vanadium through Largo’s bonded vanadium inventory in U.S. ports
Largo currently has high-purity vanadium units stored in a bonded warehouse within the United States which have not yet been imported in the U.S. thereby increasing Largo’s working capital tied to unsold inventories due to high U.S. tariffs. Assuming the implementation of the Supreme Court’s decision, tariffs will be modified or reduced, which could allow these units to be quickly released and supplied broadly to the company’s customers in the U.S.
This positioning enables Largo to respond rapidly to any change in tariff conditions, potentially increasing near-term availability of both FeV and V2O5 for steel, aerospace, defence, and specialty alloy applications. The presence of bonded inventory in U.S. Ports enhances the immediacy of Largo’s potential market impact as tariff constraints are eased.
Continued price acceleration since Feb. 12, 2026, market update
Since Largo’s last market update issued on Feb. 12, 2026, vanadium prices have continued to strengthen materially across both FeV and V2O5 markets.
Since that date of the Feb. 12 press release, European FeV prices have increased from approximately $25.6/kilogram to approximately $27.7/kg currently, reflecting continued upward momentum.
U.S. FeV prices have increased from around $17 to 18.5/pound in mid-February to over $21/lb now, with recent trades near $23/lb. This represents a notable acceleration and a widening premium over European markets.
Notably, V2O5 prices have also moved upward for the first time since the beginning of the year and are now above $5.5/lb, following sustained strength in FeV markets. This upward movement may signal tightening fundamentals across the broader vanadium value chain.
Positioning to support U.S. supply security
Largo remains a Western-aligned primary producer capable of supplying both FeV and high-purity vanadium products. As tariff constraints are modified or reduced, the company believes it is well positioned to contribute additional primary units to the U.S. market and to provide improved supply security for U.S. customers.
About Largo Inc.
Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracas Menchen mine in Brazil. As one of the world’s largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defence, chemical and energy storage sectors. The company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.
Largo is also strategically invested in the clean energy storage sector through its 50-per-cent ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S.
The company also holds a 100-per-cent interest in the Northern Dancer tungsten-molybdenum property located in the Yukon Territory, Canada, and 100-per-cent interest in the Currais Novos tungsten tailing project near Natal, Brazil. Preliminary economic assessments were completed for each asset in 2011.
Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol LGO.
