NMG Provides a Quarterly Update and Releases its Annual Report – Disciplined Execution of the Company’s Business Plan
Nouveau Monde Graphite Inc. (NYSE: NMG) has made significant progress in its Phase-1 coating module, targeting commissioning by mid-2022 for a 2,000-tpa capacity anode material production. The Phase-2 Bécancour Battery Material Plant and Matawinie Mine feasibility study is ongoing, with updates expected in Q2-2022. With a year-end cash position of $62.3M, NMG is securing financing and has received letters of interest from Export Credit Agencies. The company holds a 2.61 OSHA rate and has a A2 Sustainability Rating from Moody’s.
- Progress on Phase-1 coating module construction, with commissioning targeted for mid-2022.
- Ongoing 43-101-compliant feasibility study for Phase-2 Bécancour Battery Material Plant and Matawinie Mine, expected updates by Q2-2022.
- Year-end cash position of $62.3M, indicating strong liquidity.
- Interest from top-tier battery manufacturers for qualification sampling.
- Positive ESG credentials with an A2 Sustainability Rating from Moody's.
- None.
+ Major deliveries have been completed for NMG’s Phase-1 coating module; construction is advancing towards the planned commissioning target before the end of H1-2022 for the Company’s 2,000-tpa-capacity anode material value chain.
+ The integrated 43-101-compliant feasibility study prepared by BBA is progressing for the Phase-2 Bécancour
+ Preparatory works have resumed at the
+ Thanks to its Phase-1 production, NMG is currently actively engaged in qualification sampling with selected battery manufacturers, now providing A & B samples. Sustained interest from top-tier potential customers is supported by sample quality checks, site visits and requests for information.
+ NMG is advancing with the structuring and securing of project financing for the construction and development of the Phase-2 Bécancour
+ NMG continues to demonstrate the ESG-credentials of its business model through an A2 Robust Sustainability Rating from Moody’s and release of its Climate Action Plan.
+ Year-end
+ Year-end cash position of
On
Arne H Frandsen, Chair of NMG, commented: “We are making significant progress on our objectives at a time when the market is feeling the pressure of limited supply options, rising prices and complicated logistics. I am confident that the ESG-minded team at NMG can capitalize on our exclusive ecotechnologies and industry-leading practices to position the Company as a Western World’s trailblazer for competitive, sustainable, and local graphite advanced materials production.”
Battery Material Plant
NMG is advancing with the deployment of its coated spherical purified graphite production with the construction of its Phase-1 coating line. This last process step will complete the Company’s graphite-based product range for the EV and renewable energy sectors by having a production capacity of up to 2,000 tpa of anode material. Although some have been delayed due to the worldwide logistics disturbances, deliveries have arrived at the Company’s demonstration plant over Q4-2021 and Q1-2022. All major deliveries have now been received. Construction is underway, and on budget, for a targeted commissioning before the end of H1-2022.
Construction of the coating module at NMG’s facility.
NMG is also expecting the delivery of its second commercial-scale shaping module at its facilities in Q2-2022 which would allow it to triple its spherical graphite production capacity. The construction and equipment commissioning is scheduled to be carried out by the end of H1-2022 for a production start and ramp up during Q3-2022. This addition to NMG’s Phase-1 advanced manufacturing line will enable the Company to provide customers with a broader and more comprehensive range of specs.
NMG’s Phase-1 purification plant continues the production of battery-grade SPG volumes. Positive results obtained by testing the furnaces’ optimal capacity and the validation of operational parameters have enabled NMG to refine the engineering of the Phase-2 Bécancour Battery Material Plant.
Indeed, the Front-End Loading feasibility engineering analysis (“FEL-3”) for the Company’s Phase-2 operations is progressing and on budget, with a
In
The detailed engineering and procurement packages of the Matawinie mine and concentrator continue to progress with SNC-Lavalin,
NMG has put forward advanced standards for design criteria of tailings management at the
As for its electrification strategy, the Company’s technical team is highly engaged with Caterpillar for the planning and development of a zero-emission fleet for the
The Company’s Phase-1 operations continue to support technical marketing and product qualification efforts in the lithium-ion battery, traditional and niche sectors. Production at the Phase-1 facilities and testing at NMG’s new state-of-the-art laboratory enable the supply of graphite products in various specifications to meet the manufacturer's individual requirements.
Samples have been and continue to be provided to potential customers as part of sales discussions. NMG has advanced into the qualification process with several battery manufacturers, now providing A & B samples. Sustained interest from top-tier potential customers is supported by quality checks, site visits to the Company’s Phase-1 operations and requests for information.
In addition, the Company is actively strengthening its quality assurance and quality control with the implementation of an ISO 9001-compliant system.
Electric vehicles outsold diesel cars in
In fact, the lithium-ion battery market expansion is driving growth in demand for natural graphite with a global anode capacity projection of 8,391,550 tonnes per annum by 2031, a
These market dynamics create a favorable setting for NMG’s development of a local turnkey supply of green anode material.
Corporate and ESG
NMG conducted its operations guided by its Zero-Harm Philosophy. The Company reports a year-end
The Company embedded leading ESG principles in its business model alongside carbon-neutral operations and traceability of its value chain. In an independent assessment of the Company’s sustainability performance, Moody’s ESG Solutions provided a Sustainability Rating of A2 (‘Robust’), the second-highest grade on its rating scale, to NMG.
As part of its carbon-neutrality commitment, NMG released its Climate Action Plan detailing efforts around transparent reporting, reduction of the Company’s embedded emissions, transition to Net Zero, research and development for low-carbon materials and activities, as well as industry leadership. The Company has also purchased verified carbon credits to offset its 2021 carbon balance.
NMG is currently completing a lifecycle analysis for its graphite products portfolio to support its marketing and sustainability efforts.
The Company is advancing with the structuring and securing of project financing for the construction and development of the Phase-2 Bécancour Battery Material Plant and the
In 2021, the Company raised over
At
About Nouveau Monde
Nouveau Monde is striving to become a key contributor to the sustainable energy revolution. The Company is working towards developing a fully integrated source of carbon-neutral battery anode material in
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Cautionary Note Regarding Forward-Looking Information
All statements, other than statements of historical fact, contained in this press release including, but not limited to those describing the intended results of the Company’s development plans, the timeline and progress of the initiatives described in this press release, future graphite supply and demand, the benefits of the Company’s de-risking strategy, the impact of the foregoing on the project economics, the Company’s intended production capacity of carbon-neutral anode material, the growth of the lithium-ion battery and EV markets, the Company’s commitments and performance with respect to its ESG initiatives, including the intended electrification of the
Forward-looking information and statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking information and statements. Risk factors that could cause actual results or events to differ materially from current expectations include, among others, delays in the scheduled delivery times of the equipment, the ability of the Company to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability of financing or financing on favorable terms for the Company, the dependence on commodity prices, the impact of inflation on costs, the risks of obtaining the necessary permits, the operating performance of the Company’s assets and businesses, competitive factors in the graphite mining and production industry, changes in laws and regulations affecting the Company’s businesses, political and social acceptability risk, environmental regulation risk, currency and exchange rate risk, technological developments, the impacts of the global COVID-19 pandemic and the governments’ responses thereto, and general economic conditions, as well as earnings, capital expenditure, cash flow and capital structure risks and general business risks. Unpredictable or unknown factors not discussed in this Cautionary Note could also have material adverse effects on forward-looking statements.
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
The market and industry data contained in this press release is based upon information from independent industry publications, market research, analyst reports and surveys and other publicly available sources. Although the Corporation believes these sources to be generally reliable, market and industry data is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data-gathering process and other limitations and uncertainties inherent in any survey. The Corporation has not independently verified any of the data from third-party sources referred to in this press release and accordingly, the accuracy and completeness of such data is not guaranteed.
Neither the
Further information regarding the Company is available in the SEDAR database (www.sedar.com), and for
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VP Communications & ESG Strategy
+1-450-757-8905 #140
jpaquet@nmg.com
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