Largo Inc. (NASDAQ: LGO, TSX: LGO) is a publicly traded Canadian mining company, owner of one of the world's largest reserves of high-purity vanadium.
Vanadium is a strategic mineral with applications in the construction, infrastructure, civil and military aviation, defense systems, aerospace, and chemical industries.
Gynga developed a financial model for Largo Inc. that replicates the functioning of the company's operations, taking into account all stages of the production process, from extraction to transformation and the sale of final products.
We estimated the cost of capital and the capital structure of the company, understanding the main macroeconomic and financial variables and their impacts on financing and investment decisions, which resulted in an interactive valuation of the operation.
As a result, the company gained agility and efficiency in financial planning and in simulating operational and economic scenarios, through a digital copy of its operation translated into important numbers and metrics.
The study and analysis of new projects became more complete and detailed, enabling the evaluation of projects and new operational scenarios by the firm's directors and managers.
We also developed business and operational applications for calculating the cost of goods sold (COGS), projecting cash flows from sales contracts, and managing various administrative and operational processes.
As a result, we reduced the complexity of routine processes, allowing the company's employees to focus on what is important. We contributed to the modernization of financial management processes through business intelligence solutions, digitizing and automating financial and operational reports.
We integrated data from ERP systems with market data and the company's budgeting process. This way, it became possible to monitor the company's finances in real time and track strategic goals.
