Largo Inc. (LGO:TSX; LGO:NASDAQ) could produce copper, and potentially platinum group metals (PGMs), as byproducts at its Maracás Menchen Complex in Brazil, reported H.C. Wainwright & Co. (HCW) Analyst Heiko Ihle in a Jan. 14 research note. HCW raised its target price on the Canadian vanadium producer by 7% to reflect rolling forward HCW's discounted cash flow model by a year.
"Ongoing metallurgical tests (which assess copper recovery rates using the standard flotation technique) have yielded promising initial results, while PGM grades are still pending as their assays take longer to process," Ihle wrote.
152% Return Implied
HCW's new target price on Largo is US$3.10 per share (US$3.10/share), up from US$2.90/share previously, noted the analyst. The company was trading at about US$1.23/share at the time of Ihle's report, in comparison. From there, the return to target is 152%.
Largo remains a Buy.
The company has 83.3 million shares outstanding. Its market cap is US$102 million (US$102M). Its 52-week range is US$0.85–2.70/share.
Rerating Potential
Ihle highlighted that if Largo produced copper and PGMs as byproducts to its vanadium output, a key result would be more economic operations and eventually lower cash costs. The shift would improve the company's net cash cost profile and, at the same time, provide a hedge against low vanadium prices.
"If successful, Largo would no longer represent a pure vanadium play and instead become a diverse critical mineral company," he wrote. "This should also provide [the company] with the potential for a future rerating."
About the Copper
Regarding copper, mineralization is present throughout all deposits of the resource rather than in a single area, noted Ihle. Grades of the copper in Largo's database of 351 drill holes and 1,063 samples range from 0.1–0.5% and average 0.153%.
"We believe that Largo has significant potential to structurally transform operations by introducing a consistent byproduct copper stream, thereby potentially lowering cash costs going forward," Ihle wrote.
Earlier this year, the company began various geological studies to assess the continuity of copper mineralization at its Maracás Menchen Complex. Subsequently, it commenced metallurgical studies to assess the recoveries of both copper and PGMs as byproducts. (Largo knew PGMs were also present at the project from the results of drilling and tailing pond sampling dating back to March 2024.)
US$56M Order Received
In other news, Ihle reported, earlier this year, Largo received a US$56M binding term sheet for the purchase of 4,500,000 tons of iron ore calcine. The company has been amassing this material at Maracás Menchen for 11 years, but the market never paid the stockpile any attention. The funds from this could improve the company's balance sheet and operations significantly, the analyst wrote.
Looking ahead, a final sale, which has not happened, "would likely reduce future stockpile infrastructure needs and disposal costs, thereby allowing management to prioritize vanadium production," Ihle added.
Expectations for 2026
HCW expects Largo's cash costs to continue decreasing as the company targets higher-grade ore zones throughout this year. HCW also expects the company to see stronger cash flows eventually. In the meantime, if Largo needs to access capital, it can, through its US$60M at-the-market equity offering program.
Further out, HCW expects Largo's Storion joint venture, formed to manufacture vanadium electrolyte and components for long-duration energy storage, to "play a significant role in the North American vanadium flow battery sector," Ihle wrote.
"This valuable asset still receives very little value from investors and could therefore prove to be a meaningful catalyst for the company and its shareholders," he added.
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Disclosures for H.C. Wainwright & Co., Largo Inc., January 14, 2026
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Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months. Distribution of Ratings Table as of January 12, 2026 IB Service/Past 12 Months Ratings Count Percent Count Percent Buy 574 86.84% 147 25.61% Neutral 62 9.38% 8 12.90% Sell 1 0.15% 0 0.00% Under Review 24 3.63% 4 16.67% H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer. I, Heiko F. Ihle, CFA , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies. None of the research analysts or the research analyst’s household has a financial interest in the securities of Largo Inc. (including, without limitation, any option, right, warrant, future, long or short position). As of December 31, 2025 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Largo Inc..
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