- Following multiyear offtakes and strategic investments from
Panasonic Energy and GM, reinforced commercial engagement with
tier-1 EV and battery manufacturers toward additional offtake
agreement(s) for the remainder of NMG’s Phase-2 active anode
material production.
- Assisted by Société Générale and BMO Capital Markets, continued
discussions with multiple governmental agencies and programs,
strategic investors, and lenders to refine the targeted capital
structure for the Phase-2 project financing.
- Project execution strategy outlined for the construction of
Phase-2 facilities with an integrated project team model to ensure
greater control over the project's direction as well as reduced
project management and engineering costs.
- Active engineering to update production parameters of the
Phase-2 Bécancour Battery Material Plant in line with Anchor
Customers’ specifications.
- Issuance of NMG’s 2023 ESG Report demonstrating advancement on
climate action, biodiversity management, Indigenous relations,
governance, and stakeholder engagement.
- Closing of US$37.5-million private placements by Mitsui and
Pallinghurst for the surrender and cancellation of their
convertible notes dated November 8, 2022, as amended and
restated.
- Tree clearing activities started at the Phase-2 Bécancour
Battery Material Plant site in advance of preparatory work.
- Global EV sales continuing to grow – 21% increase
quarter-on-quarter over the period (Rho Motion, April 2024) – with
more than 1 in 5 cars sold worldwide set to be electric in 2024
(IEA, April 2024).
- NMG’s Annual General Meeting of Shareholders scheduled for June
27, 2024, via webcast.
- Twelve-month rolling OSHA recordable incident rate of 4.30 and
severity rate of 0 at the Company’s facilities; and 0 at
contractors’ work sites. No major environmental incidents.
- Period-end cash position of $88 million.
On the heels of its multiyear offtake agreements and strategic
investments with Anchor Customers Panasonic Energy Co., Ltd.
(“Panasonic Energy”), a wholly owned subsidiary of Panasonic
Holdings Corporation (“Panasonic”) (TYO: 6752), and General Motors
Holdings LLC, a wholly owned subsidiary of General Motors Co.
(collectively, “GM”) (NYSE:GM), Nouveau Monde Graphite Inc. (“NMG”
or the “Company”) (NYSE:NMG, TSXV: NOU) diligently advances its
Phase-2 development to establish what is projected to be North
America’s first, fully integrated natural graphite production for
the electric vehicle (“EV”) and battery market. The Company also
releases its 2023 Environmental, Social and Governance (“ESG”)
Report demonstrating advancement on climate action, biodiversity
management, Indigenous relations, governance, and stakeholder
engagement, among others.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240515833093/en/
Tree clearing operations at NMG’s Phase-2
Bécancour Battery Material Plant site.
Arne H Frandsen, Chair of NMG, declared: “We are writing a
unique chapter in the global energy transition movement. Our
sustainable-by-design value proposition continues to pull
stakeholders, customers, and investors to NMG’s story. Our offtake
agreements with global leaders Panasonic Energy and GM, accompanied
by equity participation and further committed investments, provide
a strong testament of NMG’s alignment with our customers’ vision
for sustainability. As governments adopt more stringent regulation
on sourcing, carbon footprint, and transparent disclosure, NMG’s
attractiveness in the market continues to grow.”
Eric Desaulniers, Founder, President and CEO of NMG, said: “At
NMG, ESG principles are central to designing our projects in
collaboration with communities and First Nations, developing our
products, innovating on technologies, and reducing the potential
impact of building and operating our facilities. It is also a
rallying chant for our employees who are proud of doing things
differently, with people and the planet in mind. To that end, I
salute Team Nouveau Monde and our partners for their engagement in
advancing our initiatives and elevating our performance.”
Driving Sustainability and Accountability
NMG’s commitment to environmental stewardship remains steadfast,
with significant progress achieved across key metrics. The Company
proudly reports having maintained a track record of 0 major
environmental incidents, 100% of water quality standards met at its
Matawinie Mine, and a carbon-neutral footprint. In that regard, NMG
signed definitive agreements with Caterpillar Inc. this year to
frame the deployment of technology, our testing collaboration, as
well as the procurement of a zero-exhaust emission fleet and
infrastructure for the Matawinie Mine.
Recognizing the importance of biodiversity conservation, NMG has
embraced a proactive approach to safeguarding nature through
sustainable engineering of its Phase-2 facilities, protection
measures for threatened species and sensitive habitats, and
proactive reclamation efforts. The Company has also adopted a Water
Stewardship Policy this year that sets out guidelines on
governance, water management, and collaboration with
stakeholders.
NMG continues to prioritize open and proactive engagement with
communities and First Nations as it advances its projects,
fostering respect, collaboration, and opportunities. Initiatives
include employee training on Indigenous realities and unconscious
bias, an adapted job application process for Indigenous workers
including content in Atikamekw and Innu-Aimun languages, as well as
outreach efforts for community and business engagement.
As part of its Diversity, Equity, and Inclusion action plan, NMG
advanced various initiatives including the participation to an
international recruitment mission, updating its corporate materials
to ensure representation of its diverse workforce, and systematic
integration of content related to diversity topics in its internal
communications to promote the benefits of an open workplace. The
Company also promotes innovative workforce practices such as paid,
alternating work-study programs in collaboration with school boards
and other industrial partners to support the development of a
skilled local workforce ahead of commercial operations.
NMG strengthened its responsible procurement practices to
emphasize high standards on social and environmental performance,
seek eco-friendly sourcing and promote opportunities for local and
Indigenous businesses. In 2023, 79% of NMG’s procurement was based
in Québec, with $4.9 million in contracts directly within its
communities.
The health, safety, and well-being of NMG’s workforce remains
paramount. NMG initiated a culture-shaping initiative in 2023 that
is set to extend and expand as the Company grows. For the
twelve-month period ended March 31, 2024, NMG had an Occupational
Safety and Health Administration (“OSHA”) recordable incident rate
of 4.30 and a severity rate of 0.
Advancing a Turnkey Ore-to-Battery-Materials
Production
The project execution strategy is now outlined for the
construction of the Matawinie Mine and Bécancour Battery Material
Plant once a final investment decision (“FID”) is reached. The
Company is advancing an integrated project team (“IPT”) model where
NMG’s owner team will be assisted by strategic partners in
engineering, procurement, construction management and project
controls. The IPT strategy offers several advantages, including
greater control over the project's direction as well as reduced
project management and engineering costs.
Ongoing engineering activities, preparation for construction and
procurement strategy are being integrated into this model, with
active progress for both projects. Building on intel from its
Phase-1 operations and integrating the specifications from its
Anchor Customers, NMG is actively updating the production
parameters of its Phase-2 Bécancour Battery Material Plant. For
example, furnace construction materials aligned with NMG’s Phase-2
commercial furnaces were installed and are being tested so
performance and data from production activities can inform parallel
engineering.
At NMG’s 200,000-m2 land in the Bécancour industrial park in
Québec, tree clearing was carried out in advance of preparatory
work. Adjacent to the Company’s Phase-1 purification plant, the
greenfield site provides a central location for building the
Phase-2 Bécancour Battery Material Plant, in the heart of the
battery industrial hub being developed, including GM-POSCO.
Securing a Solid Foundation for a Commercial
Development
After having entered into offtake agreements with Anchor
Customers for its active anode material, covering approximately 85%
of the Company’s planned Phase-2 fully integrated production, NMG
is reinforcing commercial discussions with other tier-1 battery and
EV manufacturers for the remainder volumes. NMG’s attractive fully
integrated, local, and scalable production model, aligned with
sourcing requirements and trade restrictions from key jurisdictions
provide strong tailwinds for the Company’s commercial
engagement.
In parallel, NMG continues to advance financing efforts for its
Phase-2 Matawinie Mine and Bécancour Battery Material Plant in view
of FID. With Panasonic Energy and GM multiyear supply contracts
plus long-term engagement as shareholders, NMG can demonstrate
long-term bankability underpinnings. The Company is engaged with
export credit agencies, governments, strategic investors, and
potential customers to refine a robust capital structure that
leverages international debt, government funding and equity. The
Company’s project financing approach also strives to leverage
fiscal incentives such as Canada’s Investment Tax Credit for Clean
Technology Manufacturing, a refundable tax credit of up to 30% of
eligible capital expenditures.
Following regulatory approval and positive support by NMG
shareholders, in accordance with Regulation 61-101 Protection of
Minority Security Holders in Special Transactions (“Regulation
61-101”), the Company closed private placements for an aggregate
US$37.5-million private placements from Mitsui & Co., Ltd.
(“Mitsui”) and Pallinghurst Bond Limited (“Pallinghurst”) for the
surrender and cancellation of each of Mitsui’s and Pallinghurst’s
convertible notes dated November 8, 2022, as amended and
restated.
NMG’s period-end cash position is $88 million.
Aligning with Market and Policy Trends
In Q1-2024, global EV sales reached 3.1 million units and grew
21% quarter-on-quarter (Rho Motion, April 2024). The International
Energy Agency estimates 17 million global sales in 2024, with more
than 1 in 5 cars sold worldwide set to be electric (IEA, April
2024). The adoption of EVs in North America is currently being
stimulated by the introduction of multiple new models by leading
market participants, a price war among EV manufacturers and
structuring partnerships to accelerate the deployment of charging
networks.
A trend towards reshoring supply chains and manufacturing
capacity is becoming apparent through trade tensions, governmental
incentives, and industry announcements. Canada is among the
emerging leaders of this new economy (BloombergNEF, February 2024),
and has now attracted more than $31 billion in investments from EV
and battery manufacturers since 2021 (Government of Canada, April
2024). Honda is of the number with a $15-billion plan to establish
a comprehensive supply chain in Canada through battery materials
processing, battery manufacturing, and EV assembly plants set to be
fully operational in 2028.
In the U.S., the Biden Administration is forging ahead with
incentives and sourcing requirements associated with the Inflation
Reduction Act (“IRA”). The final rule will oblige EV manufacturers
to demonstrate a meaningful procurement plan to secure compliant
supply chains for certain battery materials, including graphite, in
the transition period to 2027.
Annual General Meeting of Shareholders
NMG will hold its annual general meeting of shareholders (the
“Meeting”) on Thursday, June 27, 2024, at 10 a.m. (Eastern Time)
via live webcast at https://virtual-meetings.tsxtrust.com/en/1686 .
NMG is holding the Meeting as a completely virtual meeting, which
all shareholders, regardless of geographic location, will have an
equal opportunity to attend. Items on the agenda include (a) the
presentation of the Company’s consolidated audited financial
statements for the fiscal years ended December 31, 2023, and 2022,
and the independent auditor’s report thereon; (b) the election of
directors named in the management information circular; (c) the
appointment of the external auditor; and (d) the ratification of
the Company’s stock option plan. Registered shareholders and duly
appointed proxyholders are encouraged to vote their shares in
advance of the Meeting.
The meeting will be complemented with a corporate presentation
by Founder, President and CEO Eric Desaulniers providing an update
on the Company’s key projects, commercial engagement, and growth
plan.
Shareholders entitled to vote at the meeting will be those who
are shareholders as at the close of business on the record date,
being May 17, 2024. Electronic copies of the notice of meeting, the
management information circular, the proxy form, the voting
instruction form and the financial statements are or will be
available, as the case may be, on the Company’s SEDAR+ and EDGAR
profile, NMG’s website and at www.meetingdocuments.com/TSXT/NOU.
The Company’s financial reports, 2023 Annual Report and 2023 ESG
Report are also posted online on NMG’s website for ease of
consultation.
About Nouveau Monde Graphite
Nouveau Monde Graphite is an integrated company developing
responsible mining and advanced manufacturing operations to supply
the global economy with carbon-neutral active anode material to
power EV and renewable energy storage systems. The Company is
developing a fully integrated ore-to-battery-material source of
graphite-based active anode material in Québec, Canada. With
enviable ESG standards and structuring partnerships with anchor
customers, NMG is set to become a strategic supplier to the world’s
leading lithium-ion battery and EV manufacturers, providing
high-performing and reliable advanced materials while promoting
sustainability and supply chain traceability. www.NMG.com
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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 start of commercial operation of the Bécancour
Battery Material Plant and the Matawinie Mine, the planned
construction of the Bécancour Battery Material Plant and Matawinie
Mine, a positive final investment decision and closing of project
financing, receipt of any regulatory approvals and permits in
respect of the initiatives described herein, the anticipated
benefits of the initiatives described herein, the Company’s
projection to be North America’s first, fully integrated natural
graphite production for the electric vehicle and battery market,
the Company’s initiatives and commitments described in this press
release, including those related to ESG, the positive impact in the
communities and on local businesses, the Company’s relationship
with its stakeholders, including suppliers, contractors and
employees, the realization of the condition precedents of the
supply agreements and their entry into force, the intended supply
of active anode material to GM and Panasonic Energy, the positive
outcomes of the commercial discussions with other tier-1 battery
and electric vehicle manufacturers for the remainder volumes the
ability to firm up a robust capital structure that leverages
international debt, government funding and equity, and to leverage
fiscal incentives, the market and industry trends, the general
business and operational outlook of the Company, the Company's
long-term bankability, the intended results of the initiatives
described in this press release 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” (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 at estimated
prices of the equipment supporting the production, assumed sale
prices for graphite concentrate, the accuracy of any Mineral
Resource estimates, future currency exchange rates and interest
rates, political and regulatory stability, prices of commodity and
production costs, the receipt of governmental, regulatory and third
party approvals, licenses and permits on favorable terms, sustained
labor stability, stability in financial and capital markets,
availability of equipment and critical supplies, spare parts and
consumables, the various tax assumptions, CAPEX and OPEX estimates,
all economic and operational projections relating to the project,
local infrastructures, 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, 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, including the
changes in China’s policy regarding restrictions on Chinese
graphite materials exportations, political and social acceptability
risk, environmental regulation risk, currency and exchange rate
risk, technological developments, 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 27, 2024, including in the section thereof
captioned “Risk Factors”, which is available on SEDAR+ at
www.sedarplus.ca 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.sedarplus.ca), and for United States readers
on EDGAR (www.sec.gov), and on the Company’s website at:
www.NMG.com
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240515833093/en/
MEDIA Julie Paquet VP Communications and ESG Strategy
+1-450-757-8905, ext. 140 jpaquet@nmg.com
INVESTORS Marc Jasmin Director, Investor Relations
+1-450-757-8905, ext. 993 mjasmin@nmg.com
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