NMG Provides a Quarterly Update and Releases its Annual Report – Disciplined Execution of the Company’s Business Plan + 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
NMG Provides a Quarterly Update and Releases its Annual Report –
Disciplined Execution of the Company’s Business Plan
+ 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 Battery Material Plant and Matawinie Mine, for a comprehensive
updated economics structure of NMG’s business model to be announced before the end of
Q2-2022.
+ Preparatory works have resumed at the Phase-2 Matawinie Mine ahead of civil works
targeted for the year.
+ 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 Battery Material Plant and
Matawinie Mine, and has received non-binding letters of interest from two Export Credit
Agencies, evidencing a clear expression of the potential support which the ECA may offer.
+ 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 OSHA rate of 2.61 for the Company’s operations and 0 for its contractors, with
no major environmental incident.
+ Year-end cash position of $62.3M.
MONTRÉAL--(BUSINESS WIRE)--March 25, 2022--Nouveau Monde Graphite Inc. (“NMG”,
“Nouveau Monde” or the “Company”) (NYSE: NMG, TSXV: NOU) publishes its year-end
financial results for the twelve-month period ended December 31, 2021 as it advances towards
the final stages of its Phase-1 facilities construction demonstrating the full vertical from mining
to battery market while maintaining an active development program on its Phase-2 commercial
scale up. With the construction of NMG’s coating module well underway, the Company is set to
have a 2,000-tonnes-per-annum (“tpa”) capacity integrated graphite production line of anode
material by mid-year. At the same time, NMG is defining the updated economics model for its
Phase 2 and is engaging with potential customers and financial partners to support the delivery of
its full commercial-scale facilities.
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.”
Eric Desaulniers, Founder, President, and CEO of NMG, added: “Upon the completion of our
coating module as the final stage of our integrated Phase-1 production, we are set to offer a
turnkey solution for the extraction, concentration, value-added transformation and quality
assurance of graphite materials manufacturing. Our Phase-1 facilities accelerate our transition
to the next phase of our development by providing electric vehicle (“EV”) and battery
manufacturers with customized, high-quality, carbon-neutral and low-cost advanced materials,
supporting process optimization and value engineering for our Phase 2, as well as providing a
unique training platform for our team.”
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 48% completion rate and a scheduled
completion by the end of Q2-2022. NMG’s integrated business model will be reflected in this
National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”)-
compliant feasibility study for the Phase-2 Bécancour Battery Material Plant to update planning,
cost projection, and development framework in a unified structure with the Matawinie Mine. In
complement to the engineering efforts, the Company has initiated the permitting planning
process and community outreach for the Bécancour Battery Materials Plant.
Matawinie Mine
In December 2021, NMG completed the construction of the nearly 8-km access road connecting
the mining site to the local highway. Early works were successfully and safely completed, with
no recordable environmental, health or safety incidents. Tree clearing activities are currently
being conducted – before the nesting season to limit impacts to avifauna – in order to prepare the
site for the next phase of civil works.
The detailed engineering and procurement packages of the Matawinie mine and concentrator
continue to progress with SNC-Lavalin, Metso Outotec and NMG’s owner’s team. Optimization
of facilities, preparation of architectural specifications and plans, mechanical engineering, and
equipment selection advance on schedule. The mining plan is also progressing based on the latest
drilling campaign. Overall advancement of engineering is estimated at 55%.
NMG has put forward advanced standards for design criteria of tailings management at the
Matawinie Mine by prioritizing the desulphurization of tailings, dry-stacking, and the co-
disposal of waste rock and tailings. This environmentally sound method involved a recognized
approach and has been approved by government officials following a thorough review. An
experimental cell was built in 2020 to demonstrate in actual conditions the performance of this
proactive environmental method. Field-scale cells were built to calibrate the parameters with
respect to the performance of the tailings co-disposal objectives design, including preventing
sulfide oxidation and mine water contamination. The field test cells are instrumented and
monitored by the Company’s Environment Team. Results from the test cells are positive,
validating the co-disposal technology developed by NMG.
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 Matawinie Mine. At
the beginning of Q1-2022, NMG was awarded Mining Magazine's Future Fleets excellence
award for the intended electrification of its Matawinie Mine.
Products Development and Market
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 Europe for the first time in December 2021. To meet the
soaring demand from consumers, the auto industry is on track to invest half a trillion dollars in
the next five years to transition its fleet towards electrification (New York Times, February
2022). This shift is driving major changes in existing supply chains as original equipment
manufacturers compete to source the raw materials and electronic components and bring to
market enough volume to meet consumers' enthusiasm.
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 13.2% month-
over-month increase for the beginning Q1-2022 (Benchmark Mineral Intelligence, February
2022). Moreover, constrained supply due to mine and factory closures in China have lead to an
upward price pressure for flake graphite (Benchmark Mineral Intelligence, January 2022).
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 Occupational Safety and Health Administration (“OSHA”) Recordable Incident Rate of
2.61 for its facilities and 0 for its contractors. NMG had no major environmental incidents as
defined by the Global Reporting Initiative. Through its work protocols, continuous monitoring,
and environmental program, it responsibly conducted its operations and worked to diligently
address and mitigate any minor incident at its sites.
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
Matawinie Mine. In this regard, the Company has been in discussions with a number of Export
Credit Agencies (“ECA”) to provide credit support for a significant portion of the project
financing, and has received non-binding letters of interest from two ECA, evidencing a clear
expression of the potential support which the ECA may offer.
In 2021, the Company raised over $130M through public offerings, the exercise of warrants,
private placements, and financial levers from governments. Capital allocation emphasized the
advancement of NMG’s projects through engineering, procurement of key equipment and
construction; R&D for the development of new processes and products, and corporate expenses
to support the Company’s growth.
At December 31, 2021, the Company had $63.2M.
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 Québec, Canada for the growing lithium-ion and fuel cell markets. With low-
cost operations and enviable ESG standards, Nouveau Monde aspires to become a strategic
supplier to the world’s leading battery and automobile manufacturers, providing high-performing
and reliable advanced materials while promoting sustainability and supply chain traceability.
www.NMG.com
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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
Matawinie Mine, the interest of potential customers, the ability to structure and obtain sufficient
project financing for the construction and development of the Bécancour Battery Material Plant
and the Matawinie Mine, potential credit support from ECA, the intended results of the
initiatives described above, and those statements which are discussed under the “About Nouveau
Monde” paragraph and elsewhere in the press release which essentially describe the Company’s
outlook and objectives, constitute “forward-looking information” or “forward-looking
statements” within the meaning of Canadian and United States securities securities laws, and
are based on expectations, estimates and projections as of the time of this press release.
Forward-looking statements are necessarily based upon a number of estimates and assumptions
that, while considered reasonable by the Company as of the time of such statements, are
inherently subject to significant business, economic and competitive uncertainties and
contingencies. These estimates and assumptions may prove to be incorrect. Moreover, these
forward-looking statements were based upon various underlying factors and assumptions,
including the current technological trends, the business relationship between the Company and
its stakeholders, the ability to operate in a safe and effective manner, the timely delivery and
installation of the equipment supporting the production, the Company’s business prospects and
opportunities and estimates of the operational performance of the equipment, and are not
guarantees of future performance.
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 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.
Further information regarding the Company is available in the SEDAR database
(www.sedar.com), and for United States readers on EDGAR (www.sec.gov), and on the
Company’s website at: www.NMG.com
Contacts
Julie Paquet
VP Communications & ESG Strategy
+1-450-757-8905 #140