Nouveau Monde Graphite (NMG) Q4 2024 earnings summary

Executive summary

• Advanced toward final investment decision (FID) for Phase-2 Matawinie Mine and Bécancour Battery Material Plant, supported by updated feasibility study and $1.6B in financing interest from lenders and investors.

• Secured multiyear offtake agreements with Panasonic Energy and GM, covering over 80% of planned Phase-2 active anode material production, alongside $137.5M in equity investments from anchor customers and strategic investors.

• Signed an impact and benefit agreement with the Atikamekw First Nation of Manawan, ensuring environmental participation, training, employment, business opportunities, and financial benefit sharing.

• Uplisted to the Toronto Stock Exchange and advanced ESG initiatives, maintaining a carbon-neutral status and a B CDP climate score.

Financial highlights

• Net loss for 2024 was $73.3M, compared to $56.0M in 2023; basic and diluted loss per share improved to $0.71 from $0.93.

• Year-end cash position was $106.3M, up from $36.3M in 2023, driven by significant financing activities.

• Total assets increased to $204.1M from $123.9M year-over-year, reflecting investments in property, plant, and equipment.

• Mining projects expenses rose to $25.1M (from $9.5M), and battery material plant project expenses increased to $37.1M (from $22.9M), mainly due to engineering and development activities.

• Net financial costs improved to an income of $13.4M, mainly due to a $24.9M gain from fair value revaluation of derivative warrant liabilities.

Outlook and guidance

• Preparing for FID and construction launch for Phase-2 projects, contingent on finalizing financing and agreements with anchor customers.

• Projected after-tax IRR for integrated Phase-2 operations is 17.5% with a payback period of 5 years.

• Uatnan Mining Project (Phase-3) positioned for future expansion, with a contemplated annual production of 500,000 tpa graphite concentrate.

• Market demand for natural graphite expected to grow rapidly, with North America and Europe forecasted to see over 300% growth in the next decade.