Largo (TSX:LGO) Is Up 30.1% After Upbeat 2026 V2O5 Output Guidance From Maracás Menchen

Simply Wall St

Wed, February 11, 2026 at 12:14 PM GMT+9 3 min read

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Earlier in February 2026, Largo Inc. reported 2025 production and sales from its Maracás Menchen Mine, showing higher V2O5 output in the fourth quarter but lower full-year V2O5 and ilmenite sales versus 2024.

The company also issued 2026 guidance that points to materially higher V2O5 equivalent production, supported by improved ore availability and processing capacity upgrades, including increased kiln throughput and milling feed.

We will now examine how the planned uplift in V2O5 equivalent production shapes Largo’s investment narrative after its recent share price gains.

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What Is Largo’s Investment Narrative?

For Largo to make sense in a portfolio, you need to believe the Maracás Menchen mine can translate its higher V2O5 equivalent production into more consistent sales and, eventually, narrower losses, without eroding shareholder value through ongoing dilution. The latest Q4 and 2025 numbers show a mixed picture: stronger vanadium output late in the year, but softer full year V2O5 and ilmenite sales, reinforcing that volume alone is not solving the earnings problem yet. The 2026 guidance, with a sizeable planned uplift in V2O5 equivalent production supported by better ore availability and processing upgrades, is now a key short term catalyst, especially after the sharp share price recovery. At the same time, recent equity raises, past underperformance and listing compliance pressures keep funding risk and execution missteps very much in focus.

However, the funding and dilution risk behind Largo’s turnaround story is something investors should not overlook. Largo’s shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

TSX:LGO 1-Year Stock Price Chart

The single Simply Wall St Community fair value estimate of CA$7.47 per share contrasts sharply with Largo’s recent trading history, reminding you how far individual views can diverge. Set against the company’s plan for materially higher 2026 V2O5 equivalent production and its recent share price jump, this gap brings both execution risk and balance sheet resilience into sharper focus. It is worth weighing several community viewpoints before forming your own stance.

Explore another fair value estimate on Largo - why the stock might be worth just CA$7.47!

Build Your Own Largo Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

Story Continues  

A great starting point for your Largo research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Our free Largo research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Largo's overall financial health at a glance.

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_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include LGO.TO.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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