High Purity Flake Graphite Deposit in North America Investor Presentation – November 2018
MATAWINIE GRAPHITE PROJECT
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GRAPHITE PROJECT High Purity Flake Graphite Deposit in North - - PowerPoint PPT Presentation
MATAWINIE GRAPHITE PROJECT High Purity Flake Graphite Deposit in North America Investor Presentation November 2018 WWW.NOUVEAUMONDE.CA :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 CAUTIONARY STATEMENTS Cautionary Statements
High Purity Flake Graphite Deposit in North America Investor Presentation – November 2018
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Cautionary Statements Regarding Forward Looking Information This presentation contains "forward-looking information" within the meaning of the applicable securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified notably by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock prices; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of graphite; (v) the risk associated with establishing title to mineral properties and assets; (vi) the risks associated with entering into joint ventures; (vii) fluctuations in graphite prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the resulting issuer in securing experienced personnel and financing; * (x) access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the Company; (xii) the risks associated with the various environmental regulations the Company is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) the reliance on key personnel; (xv) liquidity risks;; (xvi) the risk of litigation; and (xvii) risk management. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in graphite prices, exploration and development plans to proceed in accordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations and exploration plans and may not be appropriate for other
securities laws.
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WITH THE SUSTAINABLE DEVELOPMENT OF OUR NATURAL RESOURCES
▪ Reliable, low cost player in the traditional graphite market ▪ Innovation in the value-added graphite markets ▪ Walking the talk : aiming at being the world’s first all-electric open- pit mine
Our mission is to produce, transform and distribute different
types of natural graphite flakes, in a profitable and sustainable way, while meeting the growing needs of the industrial markets motivated by the revolution of renewable energy and electric vehicles.
NMG PRESENTATION
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SUCCESSFUL TRANSITION FROM EXPLORATION TO DEVELOPMENT / NEAR-TERM PRODUCTION
2012, utilizing advanced geophysics technology. The Tony Block Deposit was discovered in 2015.
untapped territories
graphite in North America since Lac Guéret deposit (Mason Graphite) in 2001
in N.A. (the one owned by Imerys Graphite & Carbon)
✓ Summer 2018:To commission Demo Plant ✓ Sept 2018:2,000t production starts ✓ Q4 2018:Bankable Feasibility Study (BFS) ❑ H2 2018: Marketing & Sales Agreement ❑ Q1 2019: Start Spherical Graphite (SG) plant construction ❑ Q1 2019: IBA filing for permit ❑ H1 2019: BFS update including value-added ❑ Summer 2019: Commissioning Demo SG plant ❑ Q1 2020: Project Financing ❑ Q2 2020: Mine & Concentrator Construction Starts
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NORTH AMERICA’S GRAPHITE TRIANGLE
IMERYS
(Euronext: NK, Market Cap: ~€5B)
Imerys disclosed that Lac-des-Îles mine is nearly depleted, with enough ore through 2020
(Source : Graphite and Graphene Conference, F. Corti, Berlin, Dec 2014)
Major industrial French conglomerate with a market value of around 5B euros With output varying between 20K to 25K tons per year, it represents 25% to 30% of North American demand Proven track record of producing and selling high quality graphite concentrate since 1989
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TO GRAPHITE EXPERTS
ERIC DESAULNIERS, MSc, P. Geo Founder, President, Chief Executive Officer (CEO), Director
in Geophysics
NASA, BRGM and GSC
CHARLES-OLIVIER TARTE, CPA, CMA Chief Financial Officer (CFO)
(Canada & USA): Open pit mining site, value-added processing plant and sales office. KARL TRUDEAU Chief Operating Officer (COO)
Iles from 2011 to 2017 for Imerys Graphite & Carbon
TRISTAN C. MENARD Executive Vice-President (EVP), Capital Markets
managing over $40 billions in assets for private and institutional clients.
ZHENGLI (Andrew) TAN MSc Eng – Technical Director
SGL Group ARMANDO FARHATE B.Eng, MBA – Market Leader
mining and processing plants
PATRICE BOULANGER Ing, MBA – Director
SGL Carbon BENOIT BRIERE Plant Manager
des-Iles Imerys mine
FROM SENIOR MANAGEMENT
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GLOBAL PRODUCTION PER LOCATION
67% 15% 9% 2% 7% China India Brazil Canada Other
A LANDSCAPE DOMINATED BY CHINA AND THE REFRACTORIES
~70% of the offer comes from China Global yearly consumption: 1,1 million tons Typical mine production: ~10k-20k tpy The steel industry is the #1 buyer Current North American Market Status Consumed: 80k tpy vs Produced : 20k tpy For LiB expected growth : 150k tpy
Refractories 35% Batteries 25% Lubricants and crucibles 10% Metallurgy 7% Pencils 4% Others 19%
MAIN USES FOR GRAPHITE
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Lithium Ion Battery (LiB) market has a significant impact since Sept 2017
Source: Benchmark Mineral Intelligence
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LI-ION BATTERY MEGAFACTORIES IN CONSTRUCTION
An increased graphite demand
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Capacity 2028: 1102.5 GWh
NORTH-AMERICAN LI-ION BATTERY MARKET
EXPECTED SHORT TERM DEMAND OF 150,000 TPY
NE TX AL TE NC IN MI ON QC
= Offer = Demand
Production capacity: 52k tpa Until: 2045 Production capacity: ~ 20k tpa
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All $ in CAD unless indicated otherwise *NMG results based on NI 43-101 Pre-Feasibility Study for the West Zone
MINING PROJECT (NO VALUE-ADDED PROCESSING)
**(source: https://mwne.ws/2ArUOQR)
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Economic Highlights Feasibility study (2018) Prefeasibility study (2017) Variation
Yearly graphite concentrate production 100,000 tonnes 52,000 tonnes +92% Pre-tax NPV (8%) 1,287 M $ 499 M $ +158% Post-tax NPV (8%) 751 M $ 297 M $ +153% Pre-tax IRR 40.6 % 32.4 % +25% Post-tax IRR 32.2 % 25.9 % +24% Life of mine 25.5 years 27 years
Pre-tax Payback 2.6 years 2.6 years 0% Post-tax Payback 2.2 years 2.3 years
CAPEX 276 M $ (incl. 12.4% - 31 M $ contingency) 181 M $ (incl. 12.5% - 22 M $ contingency) +52% First 5 years average sales price 1,532 $ US / tonnes 1,429 $ US / tonnes +7% Life of mine average sales price 1,730 $ US / tonnes 1 429 $ US / tonnes +21% OPEX 499 $ / tonnes 539 $ / tonnes
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200 400 600 800 1000
10 20 30
After-Tax NPV @ 8% (M CAD)
RELATIVE VARIATION (%)
CAPEX OPEX PRICE
10,0 20,0 30,0 40,0 50,0
10 20 30
After-Tax IRR (%)
RELATIVE VARIATION (%)
CAPEX OPEX PRICE
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NMG ROW NA
500 1 000
C1 C1 Co Cost Cu Curve per er ton
750 1 500
EBI BIDTA Cu Curve per er ton
NMG ROW NA Products NMG Distribution Target market Jumbo (+48 mesh) 15% Expandable , Fuel Cell & Traditional Large (+80 mesh) 33% Traditional Medium (+150 mesh) 28% Battery & Traditional Fines (-150 mesh) 24% Battery & Traditional
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▪ Based on NMG internal studies of 12 graphite Feasibility Studies ▪ NMG expect to be in first decile EBIDTA per tonnes ▪ NMG is ready to tackle all markets
Products Jumbo Flakes (+50 mesh) Large Flakes (+80 mesh) Medium Flakes (+100 mesh) Fine Flakes (-100 mesh)
PRICE RANGE OF PRODUCTS
Purification to >99,9% Cg Micronization Shaping Electrochemical Treatment
Price Range
Expandable Graphite Purified Graphite Concentrate Purified Micronized Graphite Spherical Graphite
Products : $3,000 - $15,000 USD / ton
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LOCATION ADVANTAGES
Many options available to minimize Capex and Opex and maximize economics
Town of St-Michel-des-Saints, with an industrial history, is located 5 km from potential mine sites with skilled labor & all needed infrastructure Only 150km north
all-year access to public roads. St-Michel-des-Saints is strategically located for low transportation cost to end-users in North America 20,000 m2industrial complex currently leased for Phase 1 Demonstration Plant No need for campsite. Access to low cost green hydroelectricity Proximity to infrastructures and potential customers provides strong advantages for building operations with a low environmental footprint
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LARGE & QUALITY RESOURCE AT SURFACE June 2018
West Zone Resource Estimate
South Zone Resource Estimate
* Cut-off Grade
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GENERAL SITE LAYOUT
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PROCESS FLOWSHEET
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Products
Jumbo Flakes (+50 mesh) Large Flakes (+80 mesh) Medium Flakes (+150 mesh) Fine Flakes (-150 mesh)
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De-risking the marketing & processing of our graphite products
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A WORLD LEADER IN BATTERY MATERIALS
▪ Research center of the state owned power utility company Hydro-Québec (HQ) ▪ Over 800 patents especially in Li-ion, Li-Sulfur and Li-Air battery technologies ▪ 70 employees including 27 researchers ▪ $20M revenues yearly sourced externally reinvested in R&D ▪ HQ is lead by Dr Karim Zaghib, named one of the most influential scientific minds in the world’ by Clarivate Analytics for 3 years in a row
PARTNERSHIP AT A GLANCE
▪ Licensing agreement
all HQ existing technologies used for LiB anode material production. ▪ Exclusive R&D collaboration to develop new IP on a 50/50 basis and industrialization. ▪ HQ to assist NMG in setting up a small-scale process in its demonstration plant in Saint-Michel-des-Saints, starting by the end of 2018. ▪ The success of this small-scale process will lead NMG to eventually building an anode material fabrication plant with a capacity of up to 100k tons per year. The anode material fabrication plant would be in addition to and complementary to NMG’s mining project.
AGREEMENT HIGHLIGHTS
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✓ Summer 2018: Commission Demo concentrate plant ✓ September 2018: 2,000t production starts ✓ Q4 2018: Bankable Feasibility Study (BFS) ❑ H2 2018: Marketing and sales agreement (off-take) ❑ Q1 2019: Start Spherical Graphite (SG) plant construction ❑ Q1 2019: IBA filing for permit ❑ H1 2019: BFS update including value-added ❑ Summer 2019: Commissioning Demo SG plant ❑ Q1 2020: Project Financing ❑ Q2 2020: Mine & Concentrator Construction Starts
RECENT AND UPCOMING MILESTONES
2018-2019
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*All currency in Canadian Dollars (CAD). Market data and financial data as of Oct 1st 2018.
52-Week Price Chart ($0.25 - 0.54 CAD)
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Share Price (CAD) as of Sept 25, 2018 $0.28 Market Cap (CAD) as of Sept 25, 2018 $43M Shares Outstanding as of Sept 25, 2018 172M Warrants 53M Options / broker warrants 14M Fully Diluted Shares 239M Cash / Debt (CAD) as of Oct 1st 2018 ~$5M / $0 Management & Insiders Ownership ~25%
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Strong Institutional Support (collectively holding about 30% of shares)
Largest association of credit unions in North America Major Québec Government fund to invest in Québec mineral exploration companies Québec’s largest central labor body Largest pension fund in Canada Québec government development fund Investment Management and Technical Research for Institutional and Professional Investors based in Switzerland Registered portfolio manager and exempt market dealer across Canada Worldwide well established and innovative specialist in the sector of precious metals and commodities
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Head Office 331 Brassard St-Michel-des-Saints, QC J0K 3B0 Canada Montreal Office 410 St. Nicolas Street, Suite 236 Montreal, QC H2Y 2P5 Canada
TSXV – NOU OTCQX – NMGRF FSE – NM9
Contact Eric Desaulniers, President and CEO Mobile: 1-819-923-0333 Email: edesaulniers@nouveaumonde.ca Tristan C. Menard, Executive Vice- President, Capital Markets Mobile: 1-514-296-6339 Email: tmenard@nouveaumonde.ca