Largo (NASDAQ:LGO) has terminated its previously announced agreement to sell 4.5 million tonnes of iron ore calcine, a move that comes as the company pivots to address shifting U.S. trade policies and a surge in vanadium prices.
The Toronto-based miner ended the contract—originally valued at more than $56 million—after the unnamed counterparty failed to deliver an initial $2.9 million payment.
Largo had extended the payment deadline to February 20, but issued the termination notice Monday after the cure period expired without receipt of funds.
The company maintains full ownership of the inventory and is currently in discussions with alternative buyers.
The deal’s collapse coincides with significant price action in the vanadium market.
U.S. ferrovanadium (FeV) prices have strengthened significantly since mid-February, trading near $23/lb, while European benchmarks rose to $27.7/kg.
Prices for vanadium pentoxide have also climbed above $5.5/lb, reflecting structural supply constraints in North America.
The company is also assessing its operational strategy following recent U.S. Supreme Court decisions regarding executive tariff authority.