Unprecedented demand for battery metals is swinging attention to graphite and the critical role it plays in the batteries needed to power electric vehicles and renewable energy, and global hopes for a sustainable future.
This is where International Graphite (ASX:IG6) comes into play. Based in Western Australia, the company is on track to be one of Australia's first mine-to-market graphite producers and a new supplier of battery anode material to global battery manufacturers.
Of all the components in a lithium-ion battery, the biggest volume is in graphite which makes up 95 percent of the battery anode. It can take 50 to 100 kilograms of graphite to make a single battery – up to 10 times more graphite than lithium.
Photo credit: Visual Capitalist
Analysts agree that demand for graphite is inextricably linked to the surging demand for clean energy and graphite is in limited supply. The world now faces a significant shortage – one which will only grow more severe as economies ramp up their efforts to achieve net-zero.
The United States alone predicts a graphite shortfall of up to 1.2 million metric tons by 2030, to say nothing of how severe the shortage is likely to be on a global scale.
The graphite supply chain is racing to keep pace. Benchmark Mineral Intelligence predicts the world will need at least 97 new flake graphite mines by 2035. Although opening new graphite mines is a good start, the raw material alone will not meet the need for high quality, processed graphite suitable for making battery anodes. Currently, nearly every kilogram of battery anode material is processed through China and battery manufacturers worldwide are looking for additional and alternative supply. The pressure is on resource nations worldwide to develop downstream processing capability.
International Graphite is currently developing a planned graphite mine at Springdale, on Western Australia’s south coast, linked to a state-of-the-art research and downstream processing hub in the industrial town of Collie.
A pilot scale micronising and spheroidising plant has been commissioned at Collie, which is in the centre of Western Australia’s main electricity generation grid. A graphite micronising plant, with a capacity of approximately 4,000 tons per annum (tpa), is expected to be operational in 2024.
The company’s vision for a complete mine-to-market business is designed to achieve maximum value from the natural graphite resource. Operating exclusively in Western Australia, it leverages one of the most attractive jurisdictions in the world for resource investment with the backing of supportive government policy and an ethical graphite supply chain built on the United Nations Sustainable Development Goals.
Ultimately, International Graphite is designing its entire business to be as efficient and sustainable as possible, bringing new graphite supplies to market, new jobs to Australian regional communities, and new export opportunities to the nation. Its model is closely aligned with the Australian Government's critical minerals strategy and the Western Australian Government's vision for a world-class renewable energy and battery hub around Collie.
To date, International Graphite has received more than AU$6.7 million in combined state and federal government investment.
Outstanding results have been achieved from exploration drilling at Springdale, on Western Australia’s south coast, where International Graphite owns a high-grade fine flake graphite deposit.
Comprising three exploration licenses and a prospecting license covering a total area of 180 square kilometers, International Graphite’s Springdale Project is located 25 kilometres east of Hopetoun and 150 kilometres from the port of Esperance on Western Australia’s south coast.
An extensive drilling program has been completed defining four new graphite targets from the first of seven potential anomalies identified by aeromagnetic survey. These are located very close to the existing mineral resource. Extensive areas are yet to be investigated and the company is confident that additional reserves will be discovered in the future.
Metallurgical testing has shown that the Springdale resource is well-suited to battery anode material production and would support a long-lived shallow open-pit mining operation.
Completion of the extensive 2022-2023 drilling campaign has paved the way for an increased mineral resource estimate that hailed the Springdale Graphite project as the second largest known graphite deposit in Australia. Total Springdale mineral resource estimate has been expanded from 15.3 Mt @ 6 percent total graphitic carbon (TGC) to 49.3 Mt @ 6.5 percent TGC.
International Graphite’s multifaceted processing operation will incorporate state-of-the-art research and development facilities with separate operations for graphite micronising and battery anode material production.
A pilot scale graphite micronising and spheroidising equipment commissioned in 2022 has since been upgraded to a larger, qualification scale plant which will launch the International Graphite brand in world markets and provide product samples for customer testing and qualification.
A definitive feasibility study has been completed for the establishment of a commercial scale micronising operation at Collie with a nominal capacity of 4,000 tpa. Besides being a product in its own right, micronised graphite is also a by-product in the manufacture of battery anode material. The micronising plant is expected to be operational before the end of 2024 and will use imported graphite concentrate feed until the Company’s Springdale mine and concentrator comes online creating a fully integrated circuit.
This approach is strategically timed to generate early cashflow for the business, as well as establishing early markets.
An initial scoping study has also been released for the establishment of a second manufacturing operation that will produce coated and uncoated purified, spheroidised graphite for lithium-ion battery anodes. Land has been earmarked at Collie with construction expected to commence in 2026.
Located at the southern end of Western Australia's main industrial strip, the town of Collie has many strategic advantages for industry. The Western Australian Government has committed an unprecedented AU$650 million to support regional economic growth and to advance the region as a hub for critical mineral processing and renewable energy.
One of Australia’s leading metallurgists and an authority on graphite project development, Phil Hearse founded International Graphite in 2018 and continues to lead the company’s growth and development. An engineer with more than 40 years of experience in diverse and challenging projects around the world, his extensive career has taken him from operational and technical roles at Broken Hill, Bougainville Copper, Queensland Nickel (QNI) and Gove Alumina to senior executive and managerial positions in engineering and operating companies.
Hearse is the owner and managing director of Battery Limits, one of Australia’s leading graphite metallurgy and process engineering firms. The company has assisted many listed public companies to develop bankable feasibility studies for graphite mines and concentrators and has generated significant intellectual property in downstream processing and knowledge of the end use market. Hearse has an MBA from Hull University UK and a Bachelor of Applied Science in primary metallurgy from the University of SA. He is a fellow of the Australasian Institute of Mining and Metallurgy and a fellow of the Australasian Institute of Mining and Metallurgy.
Andrew Worland is a mining executive and experienced ASX/TSX director with over 25 years in senior finance, corporate, project management and marketing roles in the Western Australian mining sector.
Worland's commodity experience includes exploration, development and operations in lead, zinc, nickel, cobalt, gold, iron ore, molybdenum, copper and uranium. He has a Bachelor of Commerce with a major in finance and marketing from the University of Western Australia and is a qualified chartered company secretary and fellow of the Governance Institute of Australia.
David Pass has played a key role in the technical development of International Graphite since the company’s inception. A metallurgist with 30 years in the mining industry, he brings a mix of operational processing, process design, project, due diligence skills and management experience including mine operations experience with Barrick Gold.
Pass is chief executive officer of Battery Limits and an acknowledged expert in graphite primary and downstream processing and has led several studies in graphite project development to definitive feasibility level. He holds a Bachelor of Science in metallurgy from Murdoch University and is a member of the Australian Institute of Mining and Metallurgy.
Matthew O’Kane is a senior mineral industry executive and company director with 25 years’ experience in the mining, commodities, and automotive sectors. He has held senior leadership roles in Australia, the US and Asia, in both developed and emerging markets, from start-up companies through to MNC’s. He has served on the board of mining companies in Canada, Hong Kong and Australia, and is currently managing director of Comet Resources (ASX:CRL) and a non-executive director of Azarga Uranium (TSX:AZZ) and Pursuit Minerals (ASX:PUR). O’Kane has been a non-executive director of International Graphite since the company was listed in April 2022.
Nouveau Monde Graphite Inc. ("NMG" or the "Company") ( NYSE: NMG , TSX.V: NOU ) announces today the payment of accrued interests as part of a previously announced private placement announced by press release dated November 8, 2022 (the "2022 Private Placement").
Settlement of Accrued Interests
Upon the approval of the TSX Venture Exchange and the New York Stock Exchange (the "Exchanges"), the accrued interests owed to Investissement Québec (the "Holder") for the first quarter of 2024 under the unsecured convertible note, as amended and restated, (the "Note") issued in connection with 2022 Private Placement, will be deemed paid.
141,786 common shares at a price of US$2.30 (each, a "Common Share") representing an aggregate amount of US$326,108 will be issued and share certificates will be delivered to the Holder at the maturity, conversion, or redemption of the Note in payment of the accrued interests due on March 31, 2024, for the first quarter of the year. The issuance of Common Shares is subject to the approval of the Exchanges and, when issued, will be subject to a hold period of four (4) months and one day.
In connection with NMG's private placements announcement on February 15, 2024 (the "2024 Private Placements"), interest under the unsecured convertible notes issued by NMG to Mitsui & Co., Ltd. and Pallinghurst Bond Limited, respectively, has ceased to accrue as of February 14, 2024.
Grant of Options
NMG also announces the grant of 2,562,500 stock options to directors, officers, and employees in accordance with the terms of the stock option plan of the Company, 66% of which will be vesting at the achievement of certain milestone in relation to a successful Final Investment Decision. Each option entitles the holder thereof to purchase one common share of the Company at a price of $3.12 per common share for a period expiring on April 1, 2029.
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 potential conversion of the Note, the issuance of the Common Shares, approval by the Exchanges of the matters described in this press release, closing of the 2024 Private Placements with Mitsui & Co., Ltd. and Pallinghurst Bond Limited 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, 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.
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/20240401351481/en/
Julie Paquet (elle/she/her)
VP, Communications & ESG
Nouveau Monde Graphite
514.458.6925
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Through its year-end financial reports and 2023 Annual Report , Nouveau Monde Graphite Inc. ("NMG" or the "Company") ( NYSE: NMG , TSXV: NOU ) publishes a positive progress report in advancing what is projected to be North America's first integrated source of natural graphite active anode material for electric vehicles ("EV") and batteries. Strategically executing its phased development plan, NMG has continued operating its Phase-1 facilities to produce battery-grade samples and optimize its processes, has signed commercial agreements and strategic investments with 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 ), to underpin its Phase-2 commercial production, and has acquired the Uatnan Mining Project to support its Phase-3 expansion.
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NMG's 2023 Annual Report can be consulted at https://nmg.com/wp-content/uploads/2024/03/NMG-2023-Annual-Report.pdf (Graphic: Business Wire)
Arne H Frandsen, Chair of NMG, declared: "After months and years of relentless commercial engagement and product qualification efforts, we reached a transformational milestone: multiyear offtake agreements with global leaders Panasonic Energy and GM, accompanied by equity participation and further committed investments. Our trajectory towards becoming North America's leading, fully-integrated natural graphite producer is not just timely; it complements the collective goals of greater energy autonomy, national security, and sustainability."
Eric Desaulniers, Founder, President and CEO of NMG, said: "Record-breaking global spending on the clean energy transition – US$1.8 trillion investment – speaks volumes about the imperative necessity Western economies face in securing the minerals and advanced materials required to power new technologies. Our team is now updating our production parameters in light of Panasonic Energy and GM's specifications, and mapping our transition to commercial operations."
De-risking Technological Platform: Phase 1
The Company's Phase-1 facilities, covering every stage of NMG's integrated value chain, enable sample production for Anchor Customers and other potential customers, testing of production modules, refinement of process efficiency, as well as technological optimization of advanced manufacturing processes. Leveraging this technological platform, over 4,200 samples were reviewed and prepared by the Company's battery laboratory in 2023.
Production and batch testing according to the individual requirements of each manufacturer support sales discussions, engineering of the Phase-2 facilities, development of quality control and assurance protocols, and staff training in preparation for commercial operations. The Company has collaborated with education and industrial partners in the Bécancour region to launch an innovative training program to equip the local workforce with qualifications and training in green technology industrial processes . Five students within the first cohort are working at NMG Phase-1 plants throughout their training and are on track to become permanent employees upon their graduation.
Matawinie Mine & Bécancour Battery Material Plant: Phase 2
In February 2024, NMG entered into multiyear offtake agreements for its active anode material , covering approximately 85% of the Company's planned Phase-2 fully integrated production, with its Anchor Customers. NMG and Panasonic Energy signed a binding offtake agreement for the supply of 18,000 tpa of active anode material production for an initial period of seven years from the commencement of the Company's Phase-2 production. NMG also signed a supply agreement with GM for 18,000 tpa of active anode material for an initial term of six years.
Each of Panasonic and GM also made an initial US$25-million equity investment in NMG to support the advancement of the Company's Phase-2 operations in line with their respective product specifications. The Company is now updating production parameters for the Phase-2 Bécancour Battery Material Plant. Intel from Phase-1 operations and Anchor Customers' product specifications inform engineering and opportunities for technological refinement. Adjustments have namely been made to the graphite flotation cleaning circuit to optimize processing in refining stages, positively impacting both metallurgical performance and capital costs.
In addition, pre-construction planning is progressing for the Matawinie Mine and the Bécancour Battery Material Plant through the preparation of a detailed construction sequence and schedule, development of the contracting strategy including meetings with contractors to assess local capacity , as well as expansion of health and safety, environment, and quality programs. Construction Manager Pomerleau Inc. is also contributing to the budget revision and cost optimization exercises. Construction permit demands and long-lead items tendering packages are being prepared in view of the final investment decision ("FID") and launch of construction.
Following a positive FID, Panasonic, together with potential co-investors, and GM have committed to further invest an aggregate of up to US$275 million, subject to certain conditions, as part of construction funding for NMG's Phase-2 facilities. NMG continues to advance financing efforts with export credit agencies, governments, strategic investors, and potential customers to frame a robust capital structure that leverages international debt, government funding and equity.
The Company maintains intensive commercial discussions and continued product qualification with other tier-1 battery manufacturers for the balance of its Phase-2 production.
Growth Beyond: Phase 3
In January 2024, NMG acquired of 100% of the Lac Guéret Property, targeted for the development of the Uatnan Mining Project . As NMG's team expands its relationships with the Innu First Nation of Pessamit, the community and local stakeholders, the Company will prepare for subsequent studies to advance the Uatnan Mining Project to the feasibility stage.
The acquisition of another major asset in Québec, Canada, underpins the Company's expansion plans timed with projected supply and demand imbalance in the North American anode market (Benchmark Mineral Intelligence, Q4-2023).
Market Perspectives
The battery and EV outlook remains highly attractive with continued growth in the sector. In 2023, a remarkable 689 GWh was added to the EV parc, up 40% compared to the previous year (Adamas Intelligence, March 2024). EV sales crossed the adoption tipping point in 23 countries with a total of 13.6 million EVs sold globally – a 31% increase from 2022. Market analysts project further growth between 20% and 30% in 2024 (Rho Motion and Bloomberg, January 2024). To support EV manufacturing, the lithium-ion battery industry is now developing 9,388 GWh of global production capacity by 2030 through 415 gigafactories (Benchmark Mineral Intelligence, February 2024).
Raw materials required to produce batteries and EVs are becoming constrained in light of continued growth and geopolitical trade limitations. Since December 2023, China imposes restrictions on graphite exports, exacerbating pressure on the battery supply chain. China currently controls approximately 77% of the graphite extraction global production (US Geological Survey, January 2024) and 95% of spherical graphite refining for lithium-ion batteries (Benchmark Mineral Intelligence, February 2024).
In turn, the U.S. Government issued its guidance on foreign entities of concern for EV tax credits under the Inflation Reduction Act. Battery material companies' location, ownership, as well as technology licenses tied to China, North Korea, Iran, and Russia are specifically excluded from these incentives.
Such measures reaffirm the importance of establishing a local, resilient, and ESG-compliant supply chain of graphite to support battery and EV production. With an acceleration of graphite onshoring, North America is projected to overtake Asia as the region with the largest ex-China anode capacity (Benchmark Mineral Intelligence, February 2024).
Canada is among the emerging leaders of this new economy, ranking first, ahead of China, according to BloombergNEF's annual global lithium-ion battery supply chain report (February 2024), due to its mineral resources, ESG factors, key infrastructure, innovation, and industry including Québec's battery valley in Bécancour. NMG's site for its Phase-2 Bécancour Battery Material Plant is located at the center of this fast-developing zone, supported by the Québec Government's battery hub strategy.
NMG is positioning itself to respond to these market trends. The Company is strategically 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.
Corporate & ESG
The Company is committed to providing a safe work environment to its staff and business partners. In 2023, NMG had an Occupational Safety and Health Administration ("OSHA") Recordable Incident Rate of 3.63 at its facilities and 0 at its contractors' worksite. NMG initiated a culture-shaping initiative in 2023 that is set to extend and expand as the Company prepares and launch construction of its Phase-2 sites, and later starts operational readiness planning.
For the same period, NMG maintained its track record with no major environmental incidents as per the Global Reporting Initiative's definition.
The Company reports GHG emissions of 644 tonnes of CO 2 equivalent associated with carrying out operations at its Phase-1 plants and corporate offices in 2023. NMG has purchased 660 carbon credits certified to the Verified Carbon Standard (VCS) Program to offset this balance. Credits align with NMG's Climate Action Plan offsetting strategy, drive investments in developing economies affected by climate change and support the following nature-based projects:
NMG voluntarily reports under the Climate Disclosure Project ("CDP") to demonstrate its management of climate risks and opportunities, environmental performance and GHG reduction efforts, as well as climate action. The Company's 2023 rating and survey responses are now publicly available on CDP's platform. Furthermore, a dedicated ESG Report set to be published in Q2-2024 will provide additional visibility over the extent of the Company's efforts and performance regarding climate action, environmental stewardship, governance, and social engagement.
NMG tops Benchmark Mineral Intelligence's Sustainability Index for producer as the only natural graphite producer in the "Industry Leading" category ahead of all Western, African, and Chinese producers according to the comprehensive examination of ESG practices, transparency, and engagement.
Alongside the Anchor Customers' investment, Mitsui & Co., Ltd ("Mitsui") ( TYO: 8031 ) committed to a private placement of US$25 million and Pallinghurst Bond Limited ("Pallinghurst") of US$12.5 million to surrender and cancel their respective convertible notes dated November 8, 2022, as amended and restated, subject to regulatory approvals and requirements of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions ("MI 61-101"). A special meeting of the shareholders of NMG has been scheduled on May 1, 2024, to review the related party transactions as per MI 61-101.
NMG's period-end cash position is $36.3 million.
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 closing of the transactions contemplated with Pallinghurst and Mitsui, 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, the development of the Uatnan Mining Project, 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 initiatives and commitments described in this press release, including those related to ESG, the positive impact of the foregoing on project economics, 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, expected volume of active anode material per year, market and industry trends, the general business and operational outlook of the Company, 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/20240328921660/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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Highlights
EXCELLENT PROJECT ECONOMICS
With a conservative investment estimate of €156 million, Altech's DFS not only demonstrates an excellent net present value (NPV) of €169 million (NPV9) but also generates a significant net cash flow of €51 million annually from operations. The estimated internal rate of return is 19%, ensuring a capital steady state payback in just 3.7 years. At full production capacity of 120 1MWh GridPacks, the anticipated annual revenue is €106 million. With an EBITDA of €51 million (margin of 47%), the project economics is compelling, even at this relatively small first production line capacity. With the anticipated growth of the grid storage market at 28% CAGR, Altech’s Board and joint venture partners have enthusiastically given the green light to proceed to the funding phase (Final Investment Decision) for this exciting project.
Watch video of Cerenergy Battery DFS Announcement https://youtu.be/LLb6DxlHTws
Watch Video Cerenergy DFS Ann
PROJECT OWNERSHIP STRUCTURE
In September 2022, comprehensive joint venture agreements were executed, marking the commencement of design works. Notably, a fully joint and several joint venture (JV) was established, consolidating all rights and know-how between the Fraunhofer-Gesellschaft, represented by the Institute for Ceramic Technologies and Systems (IKTS), and Altech Energy Holdings GmbH (AEH). This collaborative effort led to the creation of Altech Batteries GmbH (ABG) with 75% ownership by AEH and 25% by Fraunhofer Gesellschaft. AEH, in turn, is 75% owned by Altech Batteries Limited (ASX:ATC) in Perth, Australia, and 25% by Altech Advanced Materials AG (AMA) in Heidelberg, Germany - both publicly listed companies contributing to project funding.
FRAUNHOFER IKTS BACKGROUND
Fraunhofer, based in Germany, is the world’s leading applied research organisation. Prioritising key future- relevant technologies and commercialising its technology in business and industry, it plays a major role in the innovation process. Founded in 1949, Fraunhofer currently operates 76 institutes and research units with over 30,000 employees throughout Germany. Fraunhofer Institute for Ceramic Technologies and Systems (IKTS) is one of the 76 institutes that conducts applied research on high-performance ceramics. The Institute‘s three sites in Dresden and Hermsdorf (Thuringia), Germany, collectively represent Europe‘s largest R&D institute dedicated to the study of ceramics. The annual budget of IKTS is €83 million and it has 800 employees. As a research and technology service provider, Fraunhofer IKTS develops advanced high-performance ceramic materials, industrial manufacturing processes as well as prototype components and systems in complete production lines up to the pilot-plant scale. The electrolyte within the CERENERGY® battery is a ceramic product manufactured from alumina.
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1. Generation of flake graphite concentrate (>95%Cg) using modified flow-sheet conditions designed to optimise recovery of fine to medium flake for downstream spherical graphite production as well as generation of large flake concentrate that can attract premium pricing.
2. Generation of premium battery grade coated spherical graphite (SpG), trialling chemical and thermal purification options to assess the preferred techno-economic method for production of premium battery grade SpG, followed by lithium-ion battery anode charging and durability testing. This work will expand on the outstanding purification (to 99.96%Cg) and battery test results achieved in 20233 and will result in the optimum SpG production method being adopted for more advanced development studies.
Figure 1: Lac Rainy Graphite Project high-grade sample locations, drilling areas planned with inset of Carheil zone
Metals Australia CEO Paul Ferguson, commented:
“These new metallurgical test-work programs at Lac Rainy represent another important step forward along the very clear pathway we have mapped out to develop what we believe has the potential to be a world-class flake-graphite project in the tier-one Canadian mining jurisdiction of Quebec.”
“The US$50 million equity investment and a future construction commitment of US$275 million5 announced only last month by General Motors and Panasonic Energy to advance the development of Nouveau Monde Graphite Inc’s graphite project in Quebec is another sign of the global rush to secure sources of high-grade flake graphite and downstream products outside China.”
“Building on our Scoping Study which indicates potential for an initial 14-year production mine life, we are committed to accelerating our pre-feasibility studies (PFS) for the production and downstream processing of Lac Rainy’s high-grade flake-graphite product.”
“Other critical work programs being advanced in parallel with our metallurgical test-work include environment and social impact studies, hydrogeological and geotechnical assessments, Mineral Resource estimation work and finalising key inputs to mine planning and engineering design for the concentrate plant PFS and the proposed downstream upgrading facility to produce battery anode material.”
“We have also finalised our drilling plans and contract and look forward to our drilling permit applications being approved by the government authorities in Quebec. The Company has been advised that no adverse comments were provided by stakeholders during the initial public review period for that drilling program and we look forward to our upcoming discussions with representatives of the Innu Council of Uashat Mak Mani- Utenam First Nations group to outline our planned program as part of the approval process.”
“The Company is fully committed to working respectfully and productively with all stakeholders to demonstrate the significance and potential benefits of developing this important critical minerals project, while understanding and accommodating the expectations of stakeholders throughout the development phases.”
“Our drilling program aims to extend and further define the Mineral Resource to allow expansion of the mining plan, as well as testing new regional targets where high-grade rock chips of up to 64.3% Cg4 have been generated. The fact we still have 35km of mineralised zones at Lac Rainy to drill test adds to our confidence that we will be able to significantly grow the existing Mineral Resource.”
“Critically, the recent $3.5 million placement we made through Canadian investors leaves the Company well- funded to accelerate our exploration and development studies with cash reserves of more than $18 million. The fact that Metals Australia’s market capitalisation is less than our cash balance makes us more determined than ever to demonstrate the value of our flagship Lac Rainy project, which we believe will result in a significant re-rating of the Company’s share price.”Click here for the full ASX Release
This article includes content from Metals Australia, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Highlights
The graphite concentrate tested came from reserve samples produced from previous beneficiation testwork using drill core samples from Springdale1. Purification testwork involved the application of a modified caustic soda roast process at lower temperature than previously applied and with a simplified number of stages.
Optimised tests achieved results ranging from 99.96% Loss On Ignition (LOI) to 99.97% LOI, thereby exceeding the industry standard purity grade of 99.95% and also meeting all the element-specific requirements of major Li-Ion battery and electric vehicle manufacturers (refer to Table 1). There is considerable scope to further optimise these results.
Electrochemical testwork on the uncoated purified sample of Springdale graphite concentrate achieved near theoretical-specific capacity for a graphite anode in Li-ion batteries of 372 mAh/g.
Battery stress testing over 46 charging / discharging cycles showed Springdale graphite concentrate has very high stability and durability, with the 46th cycle giving a reversible capacity of 368 mAh/g. Stress testing over longer cycles will be conducted in the next stage of battery testwork.
International Graphite Technical Director David Pass said, “The purification results demonstrate the potential for an optimised and simplified purification process to be used as an alternative to the traditional industry standard HF method.
“The electrochemical results are highly encouraging as a first phase sighter test program. These results will inform the optimisation of micronisation, spheroidisation and purification testwork and flowsheet development for our planned battery anode facilities.
To do that, we will be using ~115kg of Springdale graphite concentrate that was produced by the bulk concentrate testwork program undertaken in the second half of 2023.”
Table 1 - 26 Element ICP analysis of purified Springdale graphite concentrate sample
This announcement has been authorised for release by the Board of Directors of International Graphite Limited.
Click here for the full ASX Release
This article includes content from International Graphite, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
