SCHEDULE: Arias Capital Boosts Largo Inc. Stake to 43.15%

Arias Resource Capital and its affiliates, led by J. Alberto Arias, have disclosed a combined beneficial ownership of 43.15% in Largo Inc.'s common shares.

Summary

• Arias Resource Capital and its affiliated entities, along with J. Alberto Arias, collectively beneficially own 38,221,704 Common Shares of Largo Inc., representing 43.15% of the class.
• The percentage of ownership is calculated based on 83,313,022 Common Shares outstanding as of November 11, 2025, and assumes the exercise of reported options and warrants.
• J. Alberto Arias holds sole voting and dispositive power over 9,898,599 Common Shares, which include 4,918,033 shares held by ARC Fund III and 4,918,033 shares issuable upon exercise of warrants held by ARC Fund III.
• J. Alberto Arias also holds shared voting and dispositive power over 28,323,105 Common Shares.
• Arias Resource Capital Fund II L.P. beneficially owns 26,468,209 Common Shares, representing 31.77% of the class, with shared voting and dispositive power.
• Arias Resource Capital GP II Ltd., as the general partner of Arias II Fund and Arias II (Mexico) Fund, beneficially owns 27,969,940 Common Shares, representing 33.57% of the class, with shared voting and dispositive power.
• Arias Resource Capital Fund II (Mexico) L.P. beneficially owns 1,501,731 Common Shares, representing 1.80% of the class, with shared voting and dispositive power.
• Arias Resource Capital Management LP and Arias Resource Capital GP LLC each beneficially own 346,618 Common Shares, representing 0.41% of the class, which are issuable upon exercise of options held by Mr. Arias and Mr. Jonathan Lee (a Director of Largo Inc.).
• Arias Resource Capital GP Ltd. beneficially owns 6,547 Common Shares, representing 0.01% of the class, with shared voting and dispositive power.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, as a significant and concentrated ownership by a sophisticated resource investor like Arias Resource Capital suggests strong conviction in Largo Inc.'s long-term value and strategic direction.

Positives

• The significant and concentrated beneficial ownership by Arias Resource Capital, a sophisticated resource-focused investment group, may signal strong long-term conviction in Largo Inc.'s value and strategic direction.
• A large institutional stake can provide stability and potentially align interests between a major shareholder and the company's long-term goals.

Negatives

• A highly concentrated ownership structure, while potentially stable, could reduce the influence of minority shareholders in corporate decisions.

Industry Context

StockSavvy.ai notes that a significant beneficial ownership stake by a resource-focused investment group like Arias Resource Capital often signals long-term conviction in the issuer's underlying assets or strategic direction, particularly in the mining or materials sector where Largo Inc. operates. This level of commitment from a specialized investor can be viewed positively by the market.

Comparison to Industry Standards

• StockSavvy.ai observes that a 43.15% beneficial ownership by a single group, including options and warrants, represents a highly concentrated stake. This level of ownership is substantial compared to typical institutional holdings in publicly traded companies, where stakes rarely exceed 10-20% for non-controlling investors.
• For example, major diversified institutional investors like BlackRock or Vanguard typically hold smaller percentage stakes in individual companies. A stake of this magnitude suggests a more active, potentially strategic, or even controlling interest, akin to a private equity firm's involvement in a portfolio company, rather than a purely passive investment.

Related Party Transactions

• The beneficial ownership structure involves multiple entities (Arias Resource Capital GP Ltd., Arias Resource Capital Fund II L.P., Arias Resource Capital Fund II (Mexico) L.P., Arias Resource Capital GP II Ltd., Arias Resource Capital Management LP, Arias Resource Capital GP LLC, and J. Alberto Arias) that are interconnected and ultimately controlled or managed by J. Alberto Arias.
• J. Alberto Arias is identified as the sole member of Arias Resource Capital GP LLC, the sole director of Arias Resource Capital GP Ltd. and Arias Resource Capital GP II Ltd., and the sole partner of Arias Resource Capital Fund III L.P., demonstrating a high degree of control and influence across the reporting entities.
• Common Shares issuable upon exercise of options held by Mr. Arias and Mr. Jonathan Lee (who serves as a Director of Largo Inc.) are managed by Arias Resource Capital Management LP and Arias Resource Capital GP LLC, both controlled by J. Alberto Arias, indicating a direct link between the reporting persons and Largo Inc.'s management.

Stakeholder Impact

• Shareholders: The high concentration of ownership by Arias Resource Capital means that a significant portion of voting power resides with this group, potentially leading to more stable long-term strategic direction but also potentially less influence for minority shareholders.
• Management: J. Alberto Arias's significant stake and his roles within the Arias entities, coupled with Mr. Jonathan Lee's directorship and option holdings, indicate a strong influence of Arias Resource Capital on Largo Inc.'s management and strategic decisions.

Key Dates

Recommendation

The filing confirms a substantial and concentrated beneficial ownership by Arias Resource Capital, led by J. Alberto Arias, in Largo Inc. This level of ownership (43.15%) by a sophisticated resource investor suggests a strong, long-term conviction in the company's value proposition. While not a direct indicator of immediate operational performance, such a significant stake by a knowledgeable party can instill confidence and potentially reduce perceived risk. However, without additional operational or financial updates, a 'hold' recommendation is appropriate, acknowledging the strong insider backing while awaiting further catalysts for a 'buy' or 'sell' decision.

Keywords

Largo Inc, SEC filing, Schedule 13G, beneficial ownership, Arias Resource Capital, institutional investor, equity stake, J. Alberto Arias, common shares, resource investment