GRAPHITE PROJECT " NMG IS IS PR PROJECTED TO TO High igh - - PowerPoint PPT Presentation
MATAWINIE GRAPHITE PROJECT " NMG IS IS PR PROJECTED TO TO High igh Purit rity Flak lake Grap raphite Dep eposit OPERATE TH THE LA LARGEST in North America in GRAPHITE OPERATION IN IN TH THE WESTERN WORLD " Corp rporate
High igh Purit rity Flak lake Grap raphite Dep eposit in in North America Corp rporate Pres resentation – Janu January 2019 19
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"NMG IS IS PR PROJECTED TO TO OPERATE TH THE LA LARGEST GRAPHITE OPERATION IN IN TH THE WESTERN WORLD "
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
"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
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
as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.
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OUR COMPANY 4 TH THE E GRAPHITE MARKET 20 20 PROCESS & PRODUCTS 25 25 CAPIT ITAL MARKETS 32 32
WITH THE SUSTAINABLE DEVELOPMENT OF OUR NATURAL RESOURCES
✓Reliable, low-cost player in the traditional graphite markets ✓Innovation in the value-added graphite markets ✓Walking the talk : aiming at being the world’s first all-electric open-pit mine
Our
ur 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.
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SUCCESSFUL TRANSITION FROM EXPLORATION TO DEVELOPMENT & NEAR-TERM PRODUCTION
✓ NMG started exploration in 2012, utilizing advanced geophysics technology. The Tony Block Deposit was discovered in 2015. ✓ Explored over 10,000 km of untapped territories ✓ Only new discovery of graphite in North America since Lac Guéret deposit (Mason Graphite) in 2001 ✓ Same geological setting as the only significant graphite mine in North America (the
Graphite & Carbon)
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TO GRAPHITE EXPERTS
ER ERIC IC DESAULNIERS, MSc, P.
Geo Fou
President, Ch Chief f Exe Executi tive Offic Officer (CE CEO), Directo tor
degree in Geophysics
Shell, NASA, BRGM and GSC
CH CHARLES-OLIVIER TARTE, CP CPA, CMA CMA Ch Chief f Financial al Off Officer (CFO CFO)
Carbon
corporations (Canada & USA): open-pit mining site, value-added processing plant and sales office KARL L TRUDEAU Ch Chief f Op Operati ting Offi Officer (COO)
Lac-des-Iles from 2011 to 2017 for Imerys Graphite & Carbon
assets TRIS ISTAN C.
Exe Executi tive Vi Vice ce-President (EVP), ), Ca Capita tal Mar arkets
a firm managing over $40 billions in assets for private and institutional clients
ZHENGLI LI (Andrew) TAN MSc Eng Eng – Technical Director
China for SGL Group ARMANDO FARHATE B. B.En Eng, MBA BA – Mar arket Lea eader
graphite mining and processing plants
Carbon PA PATRICE BO BOULANGER Ing, g, MBA BA – Director
with SGL Carbon BE BENOIT BRIE BRIERE Pl Plant Man Manager
at Lac-des-Iles Imerys mine
FROM SENIOR MANAGEMENT
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ABOUT IM IMERYS
✓ Disclosed that Lac-des-Îles mine is nearly depleted (2020-2021)
(Source : Graphite and Graphene Conference, F. Corti, Berlin, Dec 2014)
✓ Major industrial French conglomerate with a market value of approximately
~€3.5B
✓ Output varying between 20K to 25K tons per year which represents 25%- 30% of North American demand ✓ Proven track record of producing and selling high quality graphite concentrate since 1989
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All $ in CAD unless indicated otherwise *NMG results based on NI 43-101 Pre-Feasibility Study for the West Zone
FOR MINING PROJECT ONLY (DOES NOT INCLUDE THE VALUE-ADDED PROCESSING PHASE)
**(source: https://mwne.ws/2ArUOQR)
Economic ic Hig ighlights Fea Feasibility stud study (O (October 201 2018)
Yearly Graphite Concentrate Production 100,000 tonnes Pre-Tax NPV @ 8% $1,287M ($US985M) Post-Tax NPV @ 8% $751M ($US575M) Pre-Tax IRR 40.6 % Post-Tax IRR 32.2 % Line of Mine (LOM) 25.5 years Pre-Tax Payback 2.6 years Post-Tax Payback 2.2 years Initial CAPEX $276M ($US211M) (incl. 12.4% contingency) Average Sales Price (First 5 Years) $US1,532/tonne Average Sales Price (LOM) $US1,730/tonne OPEX $499($US382)/tonne
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NMG ROW NA
750 1 500
EBI BITDA Cur urve per r to tonne
NMG ROW NA
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10 ✓ Best EBITDA margin per tonne
planet ✓ Low-cost producer
500 1 000
C1 1 Cost Cur urve per r to tonn nne
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 WWW.NOUVEAUM UMONDE.CA :: : TSXV:NOU :: OT OTCQX:NMGRF :: : FSE FSE:N :NM9 11
11 STRONG MARGIN OF SAFETY
AFTE AFTER-TAX IRR RR NO NORTH OF F 20% EVEN VEN IF F GRA GRAPHITE E PRI RICES S DEC ECLI LINE E BY BY 30%
✓ The town of St-Michel-des-Saints, which is located within 10 km of the mine site provides skilled labor & infrastructures ✓ Only 150 km north of Montreal with all-year access to public roads ✓ Proximity to infrastructures and potential customers ✓ No campsites needed ✓ Access to low-cost green hydroelectricity ✓ Strategically located for low cost transportation to end-users across North America
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MINIMIZING CAPEX AND OPEX WHILE MAXIMIZING ECONOMICS
FAVORABLE PROXIMITY BETWEEN MINE SITE & PLANT SITE
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LARGE & QUALITY RESOURCE AT SURFACE @ 1:1 STRIP RATIO
As s at t Ju June 2018
West est Zo Zone Res Resource Est Estim imate
✓ Indicated : 95.8M tons @ 4.28% Cg* ✓ Inferred : 14M tons @ 4.19% Cg ✓ 4. 4.69M ton tons of
raphite Con Content
So South Zo Zone Res Resource e Est Estim imate
✓ Indicated : 26.3M tons @ 3.73% Cg ✓ Inferred : 19.2M tons @ 3.67% Cg ✓ 1.7M .7M ton tons of
raphite Co Content * Cut-off Grade
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SIGNIFICANTLY DE-RISKING OUR OPERATIONS ✓ 20,000 M2 FACILITY ✓ 1,000 TPY IN 2019 & 2020
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PIONEERING THE FIRST ALL-ELECTRIC OPEN-PIT MINE IN THE WORLD
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WE ARE WORKING WITH WORLD-CLASS EV TECHNOLOGY PARTNERS
CO COMMERCIAL SPH PHERICAL GR GRAP APHITE PL PLAN ANT
SECURING STRATEGIC PARTNERSHIP FOR THE CONSTRUCTION OF THE
COMMERCIAL SCALE SG PLANT
CO COMMERCIAL MINE & CO COMMERCIAL FL FLAK AKE GR GRAP APHITE PL PLAN ANT
CONSTRUCTION STARTS IN H2 2020
PH PHAS ASE 2 DEM DEMONSTRATION PL PLAN ANT (SPH PHERICAL GR GRAP APHITE)
CONSTRUCTION STARTS IN Q2 2019
PH PHAS ASE 1 1 DEM DEMONSTRATION PL PLAN ANT (FL FLAK AKE GR GRAP APHITE)
1,000 TPY PRODUCTION 2019-2020
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A WORLD LEADER IN BATTERY MATERIALS
✓ State of the art research center ✓ Over 800 patents in Li-Ion, Li-Sulfur and Li- Air battery technologies ✓ 70 employees including 27 researchers ✓ Headed 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 on 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 is to assist NMG in setting up a small-scale process in its demonstration plant in Saint-Michel- des-Saints in 2019 ▪ The success of this small-scale process will enable NMG to eventually build an anode material fabrication plant with a capacity of up to 100k tonnes per year. The anode material fabrication plant would be in addition to and complementary to NMG’s flake graphite plant
AGREEMENT HIGHLIGHTS
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✓ SUMMER 2018: COMMISSIONING OF GRAPHITE CONCENTRATE DEMONSTRATION PLANT (PHASE 1) ✓ SEPTEMBER 2018: BEGINNING OF 1,000 TPY PRODUCTION AT THE PHASE 1 DEMONSTRATION PLANT ✓ Q4 2018: RELEASING BANKABLE FEASIBILITY STUDY (BFS) ❑ Q1 2019: SECURING MARKETING AND SALES AGREEMENTS FOR DEMO PLANT (OFF-TAKES) ❑ Q2 2019: BEGINNING THE SPHERICAL GRAPHITE (SG) DEMONSTRATION PLANT CONSTRUCTION (PHASE 2) ❑ Q1 2019: IBA FILING FOR PERMIT ❑ SUMMER 2019: ECONOMICAL STUDY TO INCLUDE VALUE-ADDED PROCESSING PHASE ❑ H2 2019: COMMISSIONING OF THE DEMONSTRATION SG PLANT ❑ H1 2020: PROJECT FINANCING (COMMERCIAL SCALE) ❑ H1 2020: SECURING STRATEGIC PARTNERSHIPS FOR THE CONSTRUCTION OF THE COMMERCIAL SCALE SG PLANT ❑ H2 2020: STARTING THE COMMERCIAL SCALE MINE AND CONCENTRATOR CONSTRUCTION ❑ H1 2022: FULL COMMERCIAL SCALE PRODUCTION
RECENT AND UPCOMING MILESTONES
2018-2020
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GLOBAL PRO RODUCTION PER R LO LOCATION
67% 15% 9% 2% 7% China India Brazil Canada Other
A LANDSCAPE DOMINATED BY CHINA AND THE REFRACTORIES
✓ Global yearly consumption: 1,1 million tons ✓ Typical mine production: ~10k-20k tpy ✓ Current North American Market : Consumption of 80k tpy vs Production of 20k tpy
Refractories 35% Batteries 25% Lubricants and crucibles 10% Metallurgy 7% Pencils 4% Others 19%
MAIN IN USE SES FOR FOR GRAP RAPHITE
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The Lithium-Ion Battery (LiB) market has had a significant impact on graphite price since September 2017 Source: Benchmark Mineral Intelligence
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✓ EXPECTED SHORT TERM DEMAND IN EXCESS OF 150,000 TPY
NE TX AL TE NC IN MI ON QC
Supply Demand
Production capacity of 100k tpy until 2045
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GA
An expected graphite demand increase
Capacity 2028: 1102.5 GWh
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✓ 2017 Capacity: 112 GWh (+40GWh non megafactory) ✓ 2023 Capacity : 441.5 GWh ✓ 2028 Capacity: 1102.5 GWh
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Pro Produ ducts NMG Dist istrib ibutio ion Targ arget mark arket 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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✓ NMG is ready to tackle all markets ✓ Graphite milling recovery of over 94% ✓ Finished product concentrate purity over 97%
Process
Graphite Ore Crushing
Grinding
(ball mill)
First Flotation
Grinding
(polishing mill)
Second Flotation
FLAKE GRAPHITE PRICE IS BASED ON FLAKE SIZE AND PURITY
Pu Puri rity: :
4,5% Cg 85-90% Cg >97% Cg
Prod roducts ts
Jumbo Flakes (+48 mesh) Large Flakes (+80 mesh) Medium Flakes (+150 mesh) Fine Flakes (-150 mesh)
Qua uantit ity
15% 33% 28% 24%
*Pr Price ce Ra Range
(USD per per Ton Tonne):
$2,548 $1,643 $1,263 $1,065 Average Price per Tonne – Fisrt 5-YR: $1,532 USD
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«Our ba battery sh should be be ca called Nic ickel-Graphite»
(Li (Li-Ni Ni-Mn Mn-Co Co-Al Al-Fe Fe-Phosphate) (G (Gra raphite)
LI LI-ION BATTERY : MAJOR GROWTH POTENTIAL FOR GRAPHITE
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75 kWh = 90kg of graphite
✓ 1 kWh of capacity 1.2 kg of graphite
̴15% of battery cell mass
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$7 $715/% of
attery cell ell mas ass
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Prod roducts ts
Jumbo Flakes (+50 mesh) Large Flakes (+80 mesh) Medium Flakes (+100 mesh) Fine Flakes (-100 mesh)
A WIDE RANGE OF MARGIN ACCRETIVE PRODUCTS
Purification to >99,9% Cg Micronization Shaping Electrochemical Treatment
Price Range
Expa panda dable Gra Graph phite te Purified Graph phite te Concentrate te Purified Micronize zed Gra Graph phite te Sph pherical Gra Graph phite te
Pro Produ ducts : $US US3,0 ,000 - $US US15 15,0 ,000/tonne
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32 ST STOCK METRICS
Share Price ($CAD) as at January 8, 2019 $0.28 Market Cap ($CAD) as at January 8, 2019 $50M 52-Week High/Low ($CAD) $0.25-$0.45 Beta 1,06 P/B Ratio 1,8 VWAP 0,2772 Average Daily Volume 150k Cash/Debt ($CAD) as at 10-2018 ~$5M/$0 Management & Insiders Ownership ~25% 2-YR STOCK PRICE COMPARISON CHART FOR NOUVEAU MONDE GRAPHITE, MASON GRAPHITE AND SYRAH RESOURCES
*All currency in Canadian Dollars (CAD). Market data and financial data as of December 21, 2018
CA CAPITAL ST STRUCTURE
Shares Outstanding as of January 8, 2019 175,311,126 Warrants Outstanding 52,039,727 Broker Warrants Outstanding 1,577,705 Advisory Warrants Outstanding 1,771,665 Options Outstanding 11,500,000 Fully Diluted Shares Outstanding 242,200,223
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Fir Firm An Analyst st Loc Locatio ion
Eight Capital David A. Talbot Toronto, ON Beacon Securities Ltd Ahmad Shaath Toronto, ON
ANALYST COVERAGE
STRONG INSTITUTIONAL SUPPORT REPRESENTING ̴30% OF TOTAL SHARES OUTSTANDING
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✓ Projected to operate the larg rgest gra graphit ite ope
ion in the western world ✓ Aiming at being the world’s first all-elect ctric ic ope
environmental mindset) ✓ Partnership with Hydro-Québec ✓ Positioned to take advantage of the on
ing EV EV rev evolution ✓ Favorable supply and demand market dynamics for graphite ✓ High-quality deposit yields fi finis ished pro product ct con conce centra rate pu puri rity of
97% ✓ A pro proven man anagement team team that can deliver ✓ Best Best-in in-cla lass ss EB EBITDA margin per tonne ✓ Reliable, low cost cost pla player r in the traditional graphite market ✓ Unique, advantageous & str strategic c loc
✓ Optimal shareholder base and pos posit itive int nteractio ions s wi with stak stakeholders ✓ Ability to tackle a wi wide range of
in ac accretive pr products
WHY YOU SHOULD BE A PART OF THE JOURNEY
Head Offj ffjce 331 Brassard St-Michel-des-Saints, QC J0K 3B0 Canada Montreal Offj ffjce 410 St. Nicolas Street, Suite 236 Montreal, QC H2Y 2P5 Canada
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Co Contact Eri Eric Desa Desaulnie iers President and CEO +1-819-923-0333 edesaulniers@nouveaumonde.ca Tr Tris istan C.
enard Executive Vice-President, Capital Markets +1-514-296-6339 tmenard@nouveaumonde.ca