Northern Graphite Announces May Operating Results
Northern Graphite Announces May Operating
Results
Ottawa, Ontario--(Newsfile Corp. - June 23, 2022) - Northern Graphite Corporation
(TSXV: NGC)
(OTCQB:
NGPHF)
(FSE: ONG) (XSTU: ONG)
(the "
Company
" or "
Northern
") is pleased to
announce the successful integration and corresponding unaudited sales and operating results from its
recently acquired Lac des Iles ("LDI"), Quebec graphite mine in its first month of operations under
Northern's ownership.
Highlights include:
Sales
1
Tonnes Shipped
1,085
Tonnes Sold
965
Sales US$
1,537,356
Average Selling Price US$ per tonne
1,593
Operations
Tonnes Mined (Ore + Waste)
114,391
Tonnes of ore processed
19,701
Tonnes of graphite concentrate produced
1,281
Process plant recovery
89.5%
Process plant utilization rate
87.2%
Other
No lost time accidents
No serious environmental incidents
Agreement reached on new four-year union agreement
1.
All figures are preliminary and may be subject to material, quarter end closing adjustments
During the month of May, Northern shipped 1,085 tonnes and 965 tonnes were sold for total revenue of
US$1,537,356 at an average price of US$1,593 per tonne. Although most of the volume from the Lac
des Iles mine is contracted on an annual basis, in early June, Northern received a spot order for 152
tonnes of its 80x150/95 grade at US$1,900MT to be shipped in July. This shows the market is tightening
for this type of product in North America. Currently Northern has a backlog of orders for 880 tonnes with
a value of US$1,528,000.
At the Lac des Iles mine and processing plant, 19,701 tonnes of ore were processed with a graphite
recovery of 89.5% to produce 1,281 tonnes of final concentrate. The plant currently operates on a 24
hour/day, 5 days/week cycle. In May plant availability was 87.2%, primarily due to shutdowns for the
replacement of the crusher feed bin grizzly and repairs to one of the cleaner flotation circuits. With
improved maintenance, elimination of a few small bottlenecks, and a seven-day operation, Northern
believes the plant can produce up to 25,000 tonnes per year (tpy) of concentrate.
Northern is also pleased to report that the Company has started to explore the area for additional
sources of ore to extend the Lac des Iles mine life.
Although still early, these searches look promising
both on the current mine site and on adjacent properties. Furthermore, the due diligence process
continues at the Mousseau West property, which was optioned earlier this year. It is located 80 kms from
Lac des Iles and within economic trucking distance. Mousseau West already contains a substantial
drilled resource. A decision on exercising the option will be made ahead of schedule in July or early
August.
The average selling price of LDI concentrates has historically been in the order of US$1,500/tonne which
translates into potential annual revenue of US$22.5 million at 15,000tpy and US$37.5 million at
25,000tpy. LDI has traditionally received a premium over published prices due to the high quality of its
flake graphite and by selling smaller quantities to loyal, long-term customers as well as providing a
secure source of local supply with just in time inventory management.
Cost data will be provided when
second quarter results are announced. The Company has recently received multiple spot orders from
non traditional customers at higher prices which indicates a tightening in market supply.
Northern is also pleased to announce that it has reached agreement on a new four-year contract with the
approximately 36 union employees who work at LDI.
The Company provided a significant cost of living
adjustment, defined severance obligations and increased benefit coverage to 100% of costs.
A formal
contract is expected to be signed in the coming weeks.
"It is very encouraging to see how quickly our team has been able to integrate the recently acquired Lac
des Iles mine since the transaction closed on April 29
th
. With a new Union contract, strong production,
shipping and sales data as well as an indication that the market for graphite is tightening, we are poised
for a strong finish to the year," said CEO Hugues Jacquemin.
"The transformation of Northern Graphite
continues and with the first pieces of equipment being ordered for our Namibian facility as well our first
employees starting at the Okorusu processing plant last week, we look forward to continued growth
whilst creating a bright future for our employees and shareholders."
About Northern Graphite
Northern Graphite is a TSX Venture Exchange listed Canadian company focussed on becoming a world
leader in producing natural graphite and upgrading it into high value products critical to the green
economy including anode material for LiBs/EVs, fuel cells and graphene, as well as advanced industrial
technologies.
Northern is the only significant graphite producing company in North America and will become the third
largest non-Chinese producer when its Namibian operations come back online in the first half of 2023.
The Company also has two large scale development projects, Bissett Creek in Ontario and Okanjande
in Namibia, that will be a source of continued production growth in the future.
All projects have "battery
quality" graphite and are located close to infrastructure in politically stable countries.
About Graphite
Graphite is a natural, pure form of carbon.
It is not a carcinogen and because it is not burned, it is not a
source of CO
2
.
Graphite has many industrial uses as a lightweight reinforcement, conductive additive
and fire retardant.
It has come to prominence because it is the largest component of a lithium ion battery
(and an important one in fuel cells), and it requires the largest production increase of any battery mineral
to meet forecast EV demand. And China dominates production and processing.
For these reasons it is
recognized as a critical mineral by the US, EU and Canada.
Qualified Person
Gregory Bowes, B.Sc. MBA P.Geo
is a "qualified person" as defined under NI 43-101 and has reviewed
and approved the content of this news release.
For additional information
Please visit the Company's website at
http://www.northerngraphite.com/investors/presentation/
, the
Company's profile on
www.sedar.com,
our
Social Channels
listed below or contact the Company at
(613) 241-9959.
YouTube
This news release contains certain "forward-looking statements" within the meaning of applicable
Canadian securities laws. 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 in this release include statements regarding,
among others; the Company's market position, its intentions with respect to its operations and
development projects, and sales, revenue and pricing projections. All such forward-looking
statements are based on assumptions and analyses made by management based on their
experience and perception of historical trends, current conditions and expected future developments,
as well as other factors they believe are appropriate in the circumstances. However, these statements
are subject to a variety of risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected including, but not limited to unexpected changes in
laws, rules or regulations, or their enforcement by applicable authorities; the failure of other parties to
perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or
inadequacy of infrastructure and the failure of ongoing and contemplated studies to deliver
anticipated results or results that would justify and support continued studies, development or
operations. Readers are cautioned not to place undue reliance on forward-looking information or
statements.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
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