NextSource Materials Provides Quarterly Update and Investor Conference Call Details
NextSource Materials Provides Quarterly Update
and Investor Conference Call Details
NEWS RELEASE – TORONTO, February 14, 2025
NextSource Materials Inc. (TSX:NEXT ) (OTCQB:NSRCF) (“NextSource” or “the Company”) is
pleased to provide a second quarter activities update for the six months ending December 31, 2024
on its Molo Graphite Mine (the “Molo mine”) in southern Madagascar , and battery anode facility
(“BAF”) development activities.
The Company’s second quarter financials and Management’s Discussion and Analysis (MD&A) are
available to access on SEDAR+ and the NextSource corporate website by end of business on
February 14th, 2025.
Key Points
• For the past two years, the graphite market has experienced oversupply and growing
competition, especially from the synthetic graphite sector. Natural graphite prices declined in
calendar year 2024, driven by weaker-than-expected EV demand and market flooding by China.
The long-term graphite market outlook remains positive, with price recoveries expected over
the next year, driven by rising EV demand and excess supply from China being absorbed.
• Global battery demand is set to surge between 2025 -2030. Benchmark Minerals Intelligence
forecasts 97 new graphite mines needed by 2035, warning of potential shortages lasting up to
20 years without diversified production beyond China. Graphite makes up >95% of a lithium -
ion battery anode, and lithium -ion batteries will remain the dominant technology for the
foreseeable future.
• Despite challenging market conditions that have slowed progress, the Company remains fully
committed to optimizing and expanding its operations. Focus remains on Molo plant
optimization and implementation of automated processes to ensure sustained plant capacity,
reduced production costs and increased economic feasibility of the operation against the
current downward trending price market. The continued ramp -up of the Molo plant will also be
balanced against the build out of sales to responsibly expand with market demand and optimize
working capital.
• The Company is working to achieve the following milestones:
• Ramp-up and optimization of Molo Phase 1 to production capacity of 15,000 - 17,000 tpa
of SuperFlake® graphite concentrate
• Declaration of commercial production, with the focus to balance the optimal output and
quality of its SuperFlake® concentrate
• Continued build out of customers and sales channels
• Secure long-term offtake agreements and strategic OEM partnerships for the production of
spherical, purified graphite (“SPG”) coated SPG (“CSPG”)
• Conclusion of the EIA for the Mauritius BAF and further evaluation of additional BAFs in
the Middle East
• In October 2024, the first container loads of high -quality, on specification, SuperFlake®
graphite concentrate were exported from Madagascar to Germany and the U.S. under existing
sales agreements and into key demand markets for higher value graphite products . These
shipments arrived in late December 2024 and are undergoing verification testing as a
requirement for further commercial sales. The Company has received further Purchase Orders
and expects a continued ramp-up of sales in the coming quarters.
• The Company has been consistently producing SuperFlake® graphite with a fixed carbon
content of over 95% and has completed shipments of qualifying SPG material via its Battery
Anode Facility Technology Partner , who is also currently performing qualifying tests and
conversion into CSPG.
• During fiscal 1H 2025, the Company announced the further strengthening of its management
team to support the next phase of its global growth strategy , with the addition of its new CEO
(Hanré Rossouw), new CFO (Jaco Crouse), and newly created roles of CDO (Craig Scherba)
and EVP of Downstream Operations (Dr. Tilo Hauke).
• Long-lead equipment and the main process equipment for the Company’s initial BAF in
Mauritius, designed for an initial production capacity of 3,600 tpa of SPG and/or CSPG, was
received during Q1 2025. The initiation of construction activities is subject to completing a
formal environmental impact assessment (“EIA”) process and obtaining all necessary permits.
The EIA is still in progress and the Company is working with the relevant authorities to expedite
the process so it can begin construction.
• In June 2024, the Company announced the positive economic results of a conceptual design
and technical study to develop a BAF in the Kingdom of Saudi Arabia, initially producing 20,000
tpa of CSPG and increasing to 100,000 tpa through staged expansions. Ne xtSource is also
evaluating additional locations in the Middle East.
• Once the Molo Mine has met the commercial production threshold, the Company will provide
forward guidance on production volumes, revenues, and operating costs.
Investor Conference Call
Chief Executive Officer Hanré Rossouw, and Chief Financial Officer Jaco Crouse will host a
conference call at 11:00 EST on February 17th, 2025, to comment on the second quarter financials
and MD&A.
To join the webcast, participants should access the following link:
https://www.webcaster4.com/Webcast/Page/3080/52033
To dial in by phone:
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 931526
A recording of the call will also be available on NextSource’s website by the following day.
About NextSource Materials Inc.
NextSource Materials Inc. is a battery materials development company based in Toronto, Canada
that is intent on becoming a vertically integrated global supplier of battery materials through the
mining and value-added processing of graphite and other minerals.
The Company’s Molo graphite project in Madagascar is one of the largest known and highest -
quality graphite resources globally, and the only one with SuperFlake® graphite. The Molo mine
has begun production, with Phase 1 mine operations currently being optimized.
The Company is also developing a significant downstream graphite value -add business through
the staged rollout of Battery Anode Facilities capable of large -scale production of coated,
spheronized and purified graphite for direct delivery to battery and aut omotive customers, outside
of existing Asian supply chains, in a fully transparent and traceable manner.
NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol “NEXT” and
on the OTCQB under the symbol “NSRCF”.
For further information about NextSource, please visit our website at nextsourcematerials.com or
contact us:
Investors: Brent Nykoliation, Executive Vice President +1.416.364.4911
Media: Michael Oke/Andy Mills +44 207 321 0000 [email protected]
Cautionary Note
This press release contains statements that may constitute “forward-looking information” or “forward-looking statements”
within the meaning of applicable Canadian and United States securities legislation. Readers are cautioned not to place
undue reliance on forward-looking information or statements. Forward looking statements and information are frequently
characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “potential”, “possible”
and other similar words, or statements that certain events or conditions “may”, “will”, “could”, or “should” occur. Forward-
looking statements include any statements regarding, among others, timing of commissioning and achievement of
nameplate capacity, including the processing plant, process improvements and mine plant adjustments as well as
production estimates and timing thereof, the rollout of Battery Anode Facilities including the capabilities and the timing
thereof. These statements are based on current expectations, estimates and assumptions that involve a number of risks,
which could cause actual results to vary and, in some instances, to differ materially from those anticipated by the
Company and described in the forward-looking statements contained in this press release. No assurance can be given
that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what
benefits the Company will derive there from. The forward-looking statements contained in this news release are made as
at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of
the forward-looking statements, whether because of new information, future events or otherwise, except as may be
required by applicable securities laws. Although the forward-looking statements contained in this news release are based
on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will
be consistent with them. These forward-looking statements are made as of the date of this news release and are
expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does
not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or
circumstances occurring after the date of this news release.