NMG Provides Operational Update and Files 2022 Financial Reports: Progress in Developing what is Planned to Be North America’s Largest Integrated Source of Natural Graphite Materials for the Energy Transition
Nouveau Monde Graphite (NYSE: NMG) reports significant progress in its integration of graphite-based solutions for energy transitions. Key advancements include a multi-year offtake agreement with Panasonic Energy, groundwork completion at the Matawinie Mine, and active engagement for phase-2 project financing. Notably, a preliminary economic assessment of the Uatnan Mining Project indicates strong returns from an annual production of 500,000 tonnes over 24 years. The company secured CA$3.6 million in grants for R&D, while its cash position stands at $59.9 million. NMG is committed to a carbon-neutral footprint aiming for net-zero emissions by 2030.
- Multi-year offtake agreement with Panasonic Energy enhances market position.
- CA$3.6 million grants received for advanced R&D projects.
- Strong returns projected from Uatnan Mining Project with 500,000 tpa production.
- None.
+ Advancement of technical and commercial parameters for a definitive multi-year offtake agreement with Panasonic Energy covering a significant portion of NMG’s active anode material production from the Company’s “ore-to-anode-material” Phase-2 facilities.
+ 2022 groundwork at
+ Continued advancement of Phase-2 project financing activities through export credit agencies’ due diligence exercises and engagement with governmental branches.
+ Preparation for construction of NMG’s Phase-2 sites through the development of an execution and contracting strategy, a hiring plan and advancement of engineering.
+ Active engagement towards offtake agreements with other potential tier-1 customers in the EV and battery sector via the production of battery-grade samples, site visits, quality checks, commercial discussions, and environmental reviews.
+ Publishing of a preliminary economic assessment of the
+ Securing of CA
+ Deployment of NMG’s Climate Action Plan through reduction efforts, proactive disclosure, and compensation for 2022 emissions in line with the Company’s commitment to transition to Net Zero by 2030.
+ Rapid development of the lithium-ion battery value chain totaling record 8.1 TWh of production capacity projected by 2030, driving demand for graphite up to 10,363,000 tpa (Benchmark,
+ Continued focus on the safe conduct of operational and construction activities with a year-end
+ Year-end cash position of
Caterpillar’s and NMG’s technical teams gathered at Caterpillar’s Immersive Visualization Center to advance electrification plans. (Photo: Business Wire)
Arne H Frandsen, Chair of NMG, declared: “North America and
Integrated Operations &
NMG continues to qualify anode material samples with leading battery and EV manufacturers, as well as purified jumbo flakes for niche applications such as hydrogen fuel cells. Production at Phase-1 facilities and performance tests at NMG’s state-of-the-art laboratory enable the supply of graphite products in a variety of specifications to meet the individual requirements of each manufacturer. A total of 47 samples were produced and supplied to potential customers in 2022 as part of sales discussions. Sustained interest from top-tier manufacturers is supported by product qualification protocols, quality checks, site visits to the Company’s Phase-1 operations, requests for information, and environmental due diligence.
In line with specific client specifications, NMG progresses in optimizing its proprietary purification process. Recent production samples have demonstrated excellent results both at the Company’s laboratory and at a leading third-party facility, indicating effective process and operational parameters.
Testing of the new commercial-scale coating unit and second shaping module also advances at the Company’s Phase-1 plant with the objective of providing a wider range of specialized products and enhancing production performance in terms of yield and throughput.
Piloting at Phase-1 facilities informs process optimization and engineering for NMG’s
Groundwork at the Matawinie site continued up to
Supporting its Phase 3, the Company completed and filed the preliminary economic assessment (“PEA”) for the
Commercial Engagement & Market Outlook
In line with its active marketing and commercialization program, the Company pursues engagement with a series of potential tier-1 customers in the EV and battery sector towards offtake agreements. On the heels of its agreement with Panasonic Energy Co., Ltd. (“Panasonic Energy”), NMG is collaborating with Panasonic Energy’s specialized teams to finalize product qualification and establish a contemplated definitive offtake agreement. Meetings and on-site visits help advance technical and commercial components.
Additional commercial discussions with potential customers for active anode material and graphite-based solutions for niche applications also continue in parallel. These activities are supported by the production of samples at the Company’s Phase-1 plants, site visits, quality checks, and environmental diligence reviews.
Current market conditions remain favorable to NMG due to increased demand for battery minerals, governmental policies for localization of energy/EV industries and restricting sales of internal combustion engines, as well as trade agreements.
Benchmark Mineral Intelligence now tracks 8,148 GWh of global lithium-ion battery production capacity to come into production by 2030 to meet these underlying economic trends. Demand for advanced materials is correspondingly set to increase up to fivefold, with graphite outpacing all other battery metals at 10,363,000 tonnes per annum (“tpa”) (
The Company is ideally located to cater to the North American and European markets with its large graphite deposit, proprietary ecotechnologies, demonstrated production capacity, carbon-neutral profile, as well as preferential jurisdiction advantages including clean hydropower, flexible logistical base and stable fiscal and political environment.
Corporate Development
True to its Zero-Harm Philosophy, the Company is focused on the safe and environmentally responsible conduct of its activities. NMG ended the year with an
Throughout the year, the Company reinforced engagement with communities, First Nations, and stakeholders to collaborate on the development of NMG’s projects, create shared value, and elevate research and development (“R&D”) efforts and industrial collaboration. For instance, NMG obtained grants for an amount of
In parallel, financing efforts for the development of NMG’s fully vertically integrated Phase-2 operations, combining the Bécancour
The Company’s year-end cash position of
2022 Carbon Balance
Taking responsibility for its environmental footprint, the Company is taking concrete steps to avoid, reduce, and fully offset its greenhouse gas (“GHG”) emissions, thus maintaining its carbon-neutral status and transitioning to Net Zero. For 2022, the Company reports GHG emissions of 1,229.1 tonnes of CO2 equivalent associated with carrying out operations at its Phase-1 demonstration plants and corporate offices.
NMG has purchased carbon credits certified to the Verified Carbon Standard (VCS) Program to offset this balance. Credits align with NMG’s Climate Action Plan offsetting strategy, drive investments in developing economies affected by climate change and support the following clean energy and biodiversity projects:
» Construction and operation of a greenfield 20 MW solar photovoltaic power plant in Ambatolampy,
» Preservation of 64,000 hectares of tropical peat swamp forest via the
» Forest plantations on degraded grasslands under extensive grazing in the Guanaré Forest in
NMG voluntarily initiated reporting under the
Furthermore, a dedicated ESG Report to be published in Q2-2023 will provide additional visibility over the extent of the Company’s efforts and performance in 2022 regarding climate action, environmental stewardship, governance, and social engagement.
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Cautionary Note
All statements, other than statements of historical fact, contained in this press release including, but not limited to those describing the timeline and costs of the initiatives and projects described in this press release, the entering into a definitive offtake agreement, the results of the preliminary economic assessment, including the potential development and operation of the Lac Guéret property and the formation of a joint venture, the results of the optimized feasibility study, the intended commercial production of high-performing active anode material with a carbon-neutral footprint, the Company’s commitments and initiatives described in this press release, including those related to ESG, the positive impact of the foregoing on project economics, the Company’s relationship with its stakeholders, market and industry trends, the ability to obtain appropriate and sufficient financing required for the development of the
Forward-looking 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 statements. Risk factors that could cause actual results or events to differ materially from current expectations include, among others, those risks, 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. A further description of risks and uncertainties can be found in NMG’s Annual Information Form dated
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 Company 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 Company 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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MEDIA
VP Communications & ESG Strategy
+1-450-757-8905 #140
jpaquet@nmg.com
INVESTORS
Director, Investor Relations
+1-450-757-8905 #993
mjasmin@nmg.com
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