NMG Reports on Quarter Progress on the Heels of Commercial Partnership with Panasonic Energy and Commencement of Expansion Planning, and Appoints Stephanie Anderson to its Board of Directors
NMG Reports on Quarter Progress on the Heels of Commercial Partnership
with Panasonic Energy and Commencement of Expansion Planning, and
Appoints Stephanie Anderson to its Board of Directors
• MoU with Panasonic Energy to confirm intentions for a multi-year offtake
agreement for a significant portion of NMG’s active anode material from the
Company’s “ore-to-anode-material” Phase-2 production facilities.
• US$50 million private placement from Mitsui & Co., Investissement Québec and
The Pallinghurst Group to support the next milestones for the project financing
activities on both the Matawinie Mine Project and the Bécancour Battery Material
Plant Project.
• Preliminary economic assessment on the Lac Guéret Mine project initiated for a
minimum production of 250,000 tpa of graphite concentrate; the study should be
completed in Q1-2023.
• Stephanie Anderson, an international finance executive from the mining sector,
appointed to NMG’s Board of Directors.
• Production at Phase-1 coating line and new shaping module expected to start in Q4-
2022 as commissioning activities come to a close.
• Advancement of Phase-2 project financing with engineering, environmental and
social due diligence exercises conducted at NMG’s sites.
• Continued advancement of the Matawinie Mine through preliminary construction
work at the site, engineering progress (estimated at 68%), advancement of
electrification plans and environmental management.
• Continued focus on the safe conduct of operational and construction activities with
a year-to-date OSHA rate of 1.53 at the Company’s facilities and 0 for contractors’
work, with no major environmental incident.
• Market conditions remain extremely attractive as battery and EV manufacturers
look to secure graphite supplies that comply with the U.S.’ new Inflation Reduction
Act requirements.
• Period-end cash position of CA $14M and CA $81.5 million on a pro-forma basis.
MONTRÉAL--(BUSINESS WIRE)--November 11, 2022--Nouveau Monde Graphite Inc.
(“NMG” or the “Company”) (NYSE: NMG, TSX.V: NOU) provides a progress update on its
business strategy in a quarter that saw the signing of a transformative commercial partnership
with Panasonic Energy Co., Ltd. (“Panasonic Energy”) and Mitsui & Co. (“Mitsui”), steady
advancement of the Company’s Phase 2 projects, and commencement of active planning for its
potential growth through the development of the Lac Guéret graphite property. NMG is
reinforcing its governance and financial expertise with the nomination to its Board of Directors
of Stephanie Anderson. In a market with tight supplies (Benchmark Mineral Intelligence,
October 2022) and increasingly stringent regulation on battery materials sourcing (U.S.
Government, August 2022), NMG is positioning itself as a leading sustainable, reliable, scalable,
and local source of active anode material for the growing Western World electric vehicle (“EV”)
industry.
Arne H Frandsen, Chair of NMG, said: “I welcome Ms. Anderson to NMG’s Board of Directors;
her 30-year experience in the mining sector and strategic commercial perspective will be pivotal
at this important time for the Company’s development. Indeed, the North American battery/EV
industry is seeing rapid growth accelerated by legislation supporting localization of production
and increased recognition for the need to reduce dependencies on Chinese supply chains. NMG
provides a turnkey solution aligned with the market’s environmental and sourcing expectations
thanks to its all-electric operational model, proprietary ecotechnologies, multimodal logistic
base, and strategic location in a tier-1 jurisdiction.”
Eric Desaulniers, Founder, President, and CEO of NMG, commented: “Our development of an
integrated ore-to-anode-materials source in North America is now strengthened by the backing
and technological collaboration of battery giant Panasonic Energy and specialized trading
house Mitsui. Already, we are collaborating to advance the optimization of our Phase-2
commercial plans with a focus on quality and low environmental footprint for a disciplined
execution of our business plan. In parallel, our mining and environmental experts are exploring
the next phase of our growth through the potential development of the Lac Guéret graphite
property.”
Phase 1: Derisking & Informing Technical Development
NMG’s Phase-1 expansion dedicated to product qualification and technological refinement of
processes to inform the Company’s full-scale Phase-2 commercial facilities is nearing
completion. The construction of the second commercial-scale shaping unit is now completed,
hence tripling NMG’s production capability. Commissioning activities are well advanced, with
the start of operations expected in Q4-2022. The new unit should further elevate NMG products’
quality and provide customers with a greater variety of specifications.
Through continued production and optimization at its Phase-1 purification facility, NMG is
testing the furnaces’ optimal capacity, refining process and operational parameters, derisking its
Phase 2 through informed parallel engineering, and generating battery-grade spherical purified
graphite (“SPG”) volumes.
In parallel, the Company’s coating module is reaching the final preparation stages prior to
production. Commissioning of most sub-systems is now completed, along with training of the
operators on the equipment and work protocols. Production is expected to commence in Q4-2022
to support product qualification as part of commercial discussions and operational optimization.
Phase 2: Delivering High-Performing Commercial Operations through Disciplined
Execution
The Company entered a commercial and strategic partnership with Panasonic Energy and Mitsui
to enable the next development steps of NMG’s fully integrated Phase-2 commercial operations
in Québec, Canada (see Commercial Engagement & Market Dynamics section).
NMG’s ore-to-battery-material integrated graphite project at the Matawinie Mine and Bécancour
Battery Material Plant is progressing diligently towards the final investment decision (“FID”)
milestone that should trigger the launch of the 28-month construction schedule. The Company
has assembled a strong internal technical team to lead the disciplined execution of this next
development stage and is engaged in discussions with experienced construction firms in
preparation.
On the back of the memorandum of understanding (“MoU”) on the offtake agreement with
Panasonic Energy for a significant portion of NMG’s green active anode material, the Company
is optimizing the feasibility study on its Phase-2 Commercial integrated operations according to
the product specifications of Panasonic Energy. Planning for the permitting process is underway,
alongside planning for detailed engineering and construction.
At the Matawinie Mine, preparatory work focused on environmental protection infrastructure
and preparation of the industrial platform for the future concentrator continues. In addition,
detailed engineering and optimization, notably on overall site layout, steel and architecture
drawings, support buildings, compressed air and mechanical components, are progressing,
supported by the finalization of process design parameters and equipment selection. At the
period end, the project engineering was advanced at approximately 68%.
NMG’s team is also actively engaged in the electrification strategy of the Matawinie Mine via
the collaboration agreement with Caterpillar Inc. for the development, testing and supply of Cat®
zero-emission machines, the preparation of on-site testing of an electrified service truck, as well
as the planning for a dedicated hydroelectricity powerline for the site.
Phase 3: Scaling Up Production
With sustained commercial interest from potential tier-1 battery and EV manufacturers, NMG is
already employed at assessing the expansion of its production capacity through the investment
agreement with Mason Graphite inc. (“Mason”) to explore the potential development of the Lac
Guéret graphite property also located in Québec, Canada. This agreement aligns with NMG’s
growth strategy with a view to establishing a large and fully vertically integrated natural graphite
production at the western markets’ doorstep.
NMG has initiated the preliminary economic assessment on the Lac Guéret graphite property.
Consultants BBA and GoldMinds Geoservices Inc. are actively working with the Company to
review the project’s mineral resources for a minimum production of 250,000 tonnes per annum
(“tpa”) of high-purity flake graphite concentrate. The study should be completed in Q1-2023.
NMG intends to leverage the expertise of its technical team, its Phase-1 facilities and its
knowledge of the graphite-based advanced materials commercial landscape to assess the
economic, technical and environmental possibilities of developing Lac Guéret graphite property.
Commercial Engagement & Market Dynamics
The Company signed an MoU with Panasonic Energy to confirm intentions for a multi-year
offtake agreement for a significant portion of NMG’s active anode material out of its fully
integrated “ore-to-anode-material” Phase-2 facilities. NMG and Panasonic Energy are working
together to establish a definitive offtake agreement as product qualification is finalized and
Phase-2 operational parameters are optimized.
NMG’s industry-leading environmental footprint, as established by a recent independent life
cycle assessment, and strong ESG credentials aligned with Panasonic Energy’s vision and
support its decarbonization commitment.
A complementary framework agreement was concluded between NMG, Panasonic Energy and
Mitsui for the development and further commercialization of the Company’s anode material.
Mitsui rallies behind NMG as a strategic investor and will support NMG’s marketing initiatives
for specific markets.
Business development activities continue as NMG’s Phase-1 operations provide product A and B
samples to potential customers as part of sales discussions. Sustained interest from potential top-
tier customers across continents is supported by quality checks, site visits to the Company’s
Phase-1 operations, requests for information, and environmental due diligence.
Pressure caused by gigafactories development across the world – now reaching 7,575 GWh of
global lithium-ion battery production capacity by 2031 (Benchmark Mineral Intelligence,
October 2022) – and China-controlled supply chains is reflected in the market shift toward
localization. Western governments are deploying programs, policies, and business incentives to
support the development of local capacity and reduce overreliance on Chinese supply. Among
these measures, the U.S. Inflation Reduction Act of 2022 has brought even more interest towards
NMG as it is projected to be the only fully integrated source of natural graphite, from mine to
anode material, in North America with significant volume.
To meet consumer demand and tap into such governmental programs, the world’s top
automakers are now projected to spend nearly $1.2 trillion by 2030 on sourcing batteries and raw
materials, and producing EVs (Reuters, October 2022).
NMG is positioning itself to respond to these market trends. 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.
Commenting on the graphite market and NMG’s development plan, Eric Desaulniers will present
a keynote at Benchmark Mineral Intelligence’s Graphite Anode 2022 flagship conference in Los
Angeles on November 14, 2022.
Stephanie Anderson
Stephanie Anderson is a finance executive and strategic business partner with a broad range of
financial, technical, marketing, market development and Arctic bulk shipping experience gained
from over 30 years spent in the mining sector. From her many years in the industry, she has
developed a solid foundation of operational and logistics understanding with the ability to
identify and drive strategies that combine business and finance.
After nearly a decade at Baffinland Iron Mines, most recently as Executive Vice President,
Corporate Development, Ms. Anderson retired from the Company. She previously served as
Chief Financial Officer from 2011 to 2017 and was part of the original team that developed the
Mary River iron ore project located at Nunavut Territory on north Baffin Island, Canada.
Ms. Anderson began her career as an exploration geologist with Inco Limited (now Vale) and
over a nineteen-year period rose to the position of Vice President & Treasurer, having previously
served in a variety of technical, marketing and accounting functions and roles.
Prior to joining Baffinland Iron Mines she held the position of Executive Vice President and
Financial Officer at Dundee Precious Metals Inc. a Canadian-based international mining
company engaged in the acquisition, exploration, and mining of precious metals.
Ms. Anderson holds a BSc. Honors Geology from the University of New Brunswick and an
MBA (Finance) from the University of Toronto.
ESG & Corporate Matters
The Company remains committed to best-of-class social and environmental efforts across its
operational sites as it advances project development. Dialogue with First Nations, engagement
with local communities and stakeholders, training programs for the Indigenous and local
workforce, flora testing for progressive site reclamation, advancement of the Company’s carbon-
neutrality program, establishment of a quality management system, and strengthening of NMG’s
governance practices are among the numerous initiatives underway.
NMG strives to provide a safe work environment to its staff and business partners. For the nine-
month period ended September 30, 2022, the Company had an Occupational Safety and Health
Administration (“OSHA”) Recordable Incident Rate of 1.53 at its facilities and 0 at its
contractors’ worksites.
Financing efforts for the development of the Company’s fully vertically integrated Phase-2
operations, combining the Bécancour Battery Material Plant and Matawinie Mine, are advancing.
Assisted by its financial advisors, NMG has engaged with export credit agencies, governments,
strategic investors, and potential customers to frame a robust capital structure that leverages
international debt, government funding and equity. Société Générale, the Company’s sole
mandated lead arranger, is overseeing the due diligence process and efforts to obtain final credit
approval. To support the latest stages of project financing with its projected lenders, NMG
hosted independent auditors to its facilities to review the engineering, environmental and social
components of its current and projected operations.
On October 19, 2022, NMG entered into unsecured convertible note subscription agreements
with Mitsui, The Pallinghurst Group and Investissement Québec for a total of US$50 million.
Closing of the transaction occurred on November 8, 2022. The issued convertible notes will
mature 36 months from the date of issuance and include an automatic conversion provision if
and when a final investment decision (“FID”) is made.
As at September 30, 2022, the Company had CA $14.034M in cash and CA $81.5 million on a
pro-forma basis considering the US $50 million financing completed on November 8, 2022.
During the quarter ended, no common shares were issued in connection with the “at-the-market”
equity offering.
About Nouveau Monde Graphite
NMG 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, NMG 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
Subscribe to our news feed: https://NMG.com/investors/#news
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 timeline of the initiatives described in this press release,
the entering into a definitive offtake agreement, the completion of the prelimary economic
assessment on the Lac Guéret graphite property, the development and operation of the Lac
Guéret graphite property, the Company’s intended all electric operations, the expected output of
the Lac Guéret graphite property, the results of the optimized feasibility study, the intended
production of eco-friendly advanced materials, the Company’s commitments and initiatives
outlined in the press release, the intended results of the initiatives described in this press release,
the positive impact of the foregoing on project economics, the Company’s relationship with its
stakeholders, market and industry trends, the ability to obtain sufficient financing required for
the development of the Matawinie Mine and the Bécancour Battery Material Plant, and those
statements which are discussed under the “About Nouveau Monde Graphite” paragraph and
elsewhere in the press release which essentially describe the Company’s outlook and objectives,
constitute “forward-looking information” or “forward-looking statements” (collectively,
“forward-looking statements”) within the meaning of Canadian and United States 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 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, 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
March 22, 2022, including in the section thereof captioned “Risk Factors”, which is available
on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. 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 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 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
MEDIA
Julie Paquet
VP Communications & ESG Strategy
+1-450-757-8905 #140
INVESTORS
Marc Jasmin
Director, Investor Relations
+1-450-757-8905 #993