- Issuance of NMG’s 2022 ESG Report demonstrating advancement on
climate action, biodiversity management, Indigenous relations,
governance, and stakeholder engagement.
- Recent announcements via Canada’s and Québec’s budgets provide
new fiscal measures and levers for investment that strengthen NMG’s
Phase-2 financing structure in complement to ongoing activities
with export credit agencies and governmental branches.
- Signature of definitive agreements with Caterpillar that frame
the deployment of technology, testing collaboration, as well as
procurement of zero-exhaust emission fleet and infrastructure at
the Matawinie Mine.
- Nomination of Stéphane Imbeault as Vice President, Bécancour
Project, to lead the engineering, construction, and commissioning
of the Bécancour Battery Material Plant as part of the Company’s
active preparation for the launch of construction of its Phase-2
facilities.
- Advancement of technical and commercial parameters definition
for a multi-year offtake agreement with Panasonic Energy and
simultaneous engagement with other tier-1 potential customers in
the EV and battery sector through product qualification and
commercial discussions.
- Offtake MoU signed to explore opportunities for NMG to supply
carbon-neutral graphite materials to Caterpillar for the
development of its secure, resilient, and sustainable battery
supply chain.
- Upcoming participation to major commercial and investment
events to elevate NMG’s visibility in the market and engage with
potential customers and investors; The Europe Battery Show, TD
Cowen Sustainability Week and Batteries Gigafactories USA.
- Securing of financial levers via underwritten public financing
generating approximately US$22 million and R&D grants of up to
CA$3.6 million.
- Battery and EV markets continue their expansion pushed by
consumer demand and environmental legislation; 2023 is set to see
battery production reach 1 TWh on a global basis for the first time
(Benchmark Mineral Intelligence, Q1-2023).
- NMG’s Annual General and Special Meeting of Shareholders
scheduled for June 19, 2023, via webcast.
- Continued focus on safe conduct of activities with a
year-to-date OSHA rate of 0 at the Company’s facilities and 0 for
contractors’ work, with no major environmental incident.
- Period-end cash position of CA$48.8 million.
Within a soaring market environment, Nouveau Monde Graphite Inc.
(“NMG“ or the “Company”) (NYSE: NMG, TSX.V: NOU) diligently
progresses toward the commercial Phase 2 of its business strategy
and releases its 2022 Environmental, Social and Governance (“ESG”)
Report, further positioning itself as a driving force in the clean
energy transition. The Company’s turnkey ore-to-battery-materials
production model provides attractive commercial, technological, and
ESG parameters to western markets seeking to reduce their reliance
on Chinese supply chains, leverage governmental incentives and
reduce the environmental footprint of their technologies.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230511005311/en/
NMG’s 2022 ESG Report can be consulted
online at
https://nmg.com/wp-content/uploads/2023/05/NMG-ESG-Report-2022.pdf.
(Graphic: Business Wire)
Arne H Frandsen, Chair of NMG, declared: “Striving to become
North America’s largest integrated natural graphite producer, NMG
welcomes this mobilization for an ethically- and
environmentally-responsible energy transition. While the Company is
climate-oriented by design, we continue to refine, elevate, and
connect our sustainability practices to drive the greatest impacts
possible in our sector. NMG is ideally positioned to cater to
western markets with its large graphite deposit, proprietary
ecotechnologies, demonstrated production capacity, carbon-neutral
profile as well as preferential jurisdiction advantages that
include clean hydropower, flexible logistical base and stable
fiscal and political environment.”
Eric Desaulniers, Founder, President and CEO of NMG, added:
“Commercial discussions with Panasonic Energy Inc. (“Panasonic
Energy”) and other leading battery and electric vehicles (“EV”)
manufacturers are progressing well to advance the development of
green and reliable supply chains. Clean energy is gaining momentum
beyond industry thanks to North American and European governments’
policies and stimuli. Their active involvement signals a shift in
economic constructs through ESG-focused regulation and financial
incentives, strengthening the foundations on which we are
developing our integrated operation.”
NMG’s 2022 ESG Report can be consulted
online.
The Company’s 2022 ESG Report presents the management approach,
key programs, advancements, case studies, and metrics covering
NMG’s activities at its Phase-1 operations, in planning its Phase-2
Matawinie Mine and Bécancour Battery Material Plant, as well as for
corporate development and contemplated Phase-3 Uatnan Mining
Project. Among the major advancements during the exercise, NMG
enhanced its climate action and resilience, biodiversity
management, Indigenous relations, governance, and stakeholder
engagement.
The report leverages the Global Reporting Initiative (“GRI”),
the Value Reporting Foundation (SASB Standards), the Task force on
Climate-related Financial Disclosures (“TCFD”), and the United
Nations Global Compact disclosure frameworks in line with best
practices. Standardized reporting enables shareholders, asset
managers, and stakeholders to consult, compare, and analyze the
Company’s management of environmental, social and governance
(“ESG”) material issues.
Integrated Operations & Phased Development
The Company’s Phase-1 operations continue to produce graphite
materials to support product qualification efforts with leading
battery and EV manufacturers. The new shaping equipment
successfully installed in 2022 is now fully commissioned. Tests
have generated positive results with samples produced that met
various potential client specifications. Production is set to ramp
up during the year. The commissioning of the coating module is
progressing in parallel.
NMG is actively advancing plans for the Phase-2 Matawinie Mine
and Bécancour Battery Material Plant in line with commercial
discussions. The Company developed the project’s execution and
contracting strategy in preparation for construction once a final
investment decision (“FID”) is reached.
On the foundation of their 2021 collaboration agreement and of
technical work achieved together over the past two years, the
Company and Caterpillar Inc. (“Caterpillar”) have signed definitive
agreements to supply NMG’s Matawinie Mine with an integrated
solution that covers a zero-exhaust emission fleet, supporting
infrastructure, and service. Caterpillar is set to be NMG’s
supplier of heavy mining equipment, supporting the progressive
transition from traditional models to Cat® zero-exhaust emission
machines as they become available. Depending on the
commercialization of Cat® zero-exhaust emission machines,
Caterpillar will reserve production slots, which should enable the
Company to benefit from timely deliveries and technology
enhancements throughout the duration of the contract. Furthermore,
Caterpillar’s Job Site Solutions will help reduce NMG’s initial
capital intensity for the Matawinie Mine by providing access to
equipment through an hourly fee based on usage and includes asset
management support to help improve uptime, predictability, and
efficiency.
Commercial Engagement & Market Outlook
In addition to their collaboration on mining fleet
electrification, the Company and Caterpillar have signed a
memorandum of understanding (“MoU”) to advance commercial
discussions targeting NMG’s active anode material. Through this
MoU, a full circular value chain could be established whereas NMG
would supply carbon-neutral graphite materials to Caterpillar for
the development of its secure, resilient, and sustainable battery
supply chain that would serve to electrify heavy vehicles,
including NMG’s Matawinie fleet.
Technical work and commercial discussions are advancing between
the Company and Panasonic Energy to finalize product qualification
and establish a contemplated multi-year definitive offtake
agreement for a significant portion of NMG’s active anode material
out of the Company’s fully integrated “ore-to-anode-material”
Phase-2 facilities.
In line with its active marketing and commercialization program,
NMG is also engaged with top-tier battery and EV manufacturers
across continents through the supply of samples in a variety of
specifications meeting individual requirements, site visits, and
sales discussions with a view to establish offtake agreements.
NMG’s commercial engagement matches the growth in EVs, renewable
energy solutions and electronics markets; EV sales are expected to
reach 22.5 million units by 2025 (Rho Motion, Q1-2023). Global
battery production is rapidly expanding; 2023 is set to see
manufacturing capacity reach 1 TWh for the first time. By the end
of 2030, the global lithium-ion battery production capacity is
projected to soar to 8,493 GWh, multiplying demand for advanced
materials up to fivefold, with graphite outpacing all other battery
metals (Benchmark Mineral Intelligence, April 2023) at 10,809,000
tonnes per annum.
With manufacturers facing a challenge to secure the raw
materials needed, NMG is heading to Europe’s Battery Show in
Stuttgart, Germany on May 23-25, 2023. The trade show is dedicated
to advanced battery technology for electric and hybrid vehicles,
utility and renewable energy support, portable electronics, medical
technology as well as telecommunications. The Company’s Sales and
R&D team will be onsite, at booth 8C34, to meet key industry
players and examine some of the latest technologies that could
complement NMG’s operations. Patrice Boulanger, Vice President,
Sales, Marketing & Business Development, will participate to
the “AFFORDABLE EVs with Silicon-Enabled Longer Range, Smaller,
Cheaper, Faster Charging Batteries” panel on May 25, 2023.
On June 6-9, 2023, the Company will promote its ESG credentials
and climate-focused business model at TD Cowen’s Sustainability
Week rallying sustainability-focused investors and stakeholders.
President and CEO Eric Desaulniers will take part in a fireside
chat on June 6, 2023, at 9:45 a.m. ET; investors can virtually join
the session via webcast at
https://wsw.com/webcast/cowen135/nmg/1846602.
NMG will also join the marketplace at the Battery Gigafactories
USA 2023 conference in Washington, DC, on June 8-9, 2023, to engage
with energy industry leaders, automotive OEMs, battery gigafactory
operators, government officials, financial institutions, and the
global lithium-ion battery supply chain. Eric Desaulniers will take
the stage on June 9, 2023, for the “Graphite & Anodes” session
that will explore ex-China flake graphite in development,
forecasted challenges and opportunities.
Corporate Development
NMG is pleased to announce the nomination of Stéphane Imbeault
as Vice President, Bécancour Project, to lead the engineering,
construction, and commissioning of the Bécancour Battery Material
Plant as part of the Company’s active preparation for its Phase 2.
Mr. Imbeault cumulates more than 20 years of experience in
industrial environments leading complex engineering and
construction projects as well as operations for Rio Tinto and
Canmec Group in different industrial transformation processes,
advanced manufacturing, and energy sectors. As a certified Lean Six
Sigma Black Belt, Mr. Imbeault has led organizational efforts to
adopt a continuous improvement culture and coached six sigma
leaders in realizing their appointed projects. He holds an MBA from
Université du Québec à Montréal and a Bachelor’s in Engineering
from Université du Québec à Chicoutimi.
To support its development toward FID and provide extended
financial runway, NMG closed on April 17, 2023, an underwritten
public offering for aggregate gross proceeds of approximately US$22
million. The contemplated non-brokered private placement with
noteholders associated with the public financing was not concluded.
Additionally, NMG obtained grants for an amount of $3.6 million for
the deployment of the Company’s Phase-1 coating operations and for
R&D projects targeting the development of advanced
manufacturing of graphite-based materials with a low environmental
impact.
In March 2023, the Canadian Government published its 2023 budget
which includes stimulus measures for the development of a national
clean energy economy. A new Investment Tax Credit for Clean
Technology Manufacturing is set to provide Canadian businesses
investing in eligible assets, which includes extraction and
processing of critical minerals such as graphite and anode
materials, a refundable tax credit of up to 30% of eligible capital
expenditures. The Québec Government also included investment
incentives in its 2023 budget through a non-refundable credit of up
to 25% on projects exceeding $100 million in the province,
including mining and advanced manufacturing. The Company is
updating its financing structure to best capture these tax measures
for the construction of its Phase-2 Matawinie Mine and Bécancour
Battery Material Plant.
True to its Zero-Harm Philosophy, the Company is focused on the
safe and environmentally responsible conduct of its activities. NMG
recorded an Occupational Safety and Health Administration (“OSHA”)
Recordable Incident Rate of 0 at the Company’s facilities and 0 at
contractors’ work sites, with 0 major environmental incidents
during Q1-2023.
The Company’s year-end cash position of $48.8 million
Annual General and Special Meeting of Shareholders
NMG will hold its annual general and special meeting of
shareholders (the “Meeting”) on Monday, June 19, 2023, at 10
a.m. (Eastern Time) via live webcast at
https://web.lumiagm.com/470492294. 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, 2022 and 2021 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 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 8, 2023. 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, 2022 Annual Report and 2022 ESG
Report are also posted online on NMG’s website for ease of
consultation.
About Nouveau Monde Graphite
Nouveau Monde Graphite is striving to become a key contributor
to the sustainable energy revolution. The Company is working
towards developing a fully integrated source of carbon-neutral
battery anode material in Québec, Canada, for the growing
lithium-ion and fuel cell markets. With enviable ESG standards, NMG
aspires to become a strategic supplier to the world’s leading
battery and automobile 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 timeline and costs of the initiatives and projects
described in this press release, the entering into a definitive
offtake agreement, the potential development and operation of the
Lac Guéret property the intended commercial production of
high-performing active anode material with a carbon-neutral
footprint, the Company’s commitments and initiatives described in
this press release, including those related to ESG, the Company’s
initiatives outlined in the ESG Report and the achievement of the
targets described therein, the Company’s performance with respect
to the initiatives described in this press release, the positive
impact of the foregoing on project economics, including the
positive impact of fiscal measures and governmental incentives on
the Company, the Company’s relationship with its stakeholders,
market and industry trends, forecasts of future graphite demand and
supply, the interest of potential customers, the ability to obtain
appropriate and sufficient financing required for the development
of the Matawinie Mine and Bécancour Battery Material Plant, the
planned development of the Matawinie Mine and the Bécancour Battery
Material plant as well as their demonstration plants and other
development plans, the intended results of the initiatives
described in this press release, the expected electrification
strategy and its intended results and benefits, the potential
establishment of a circular value chain with Caterpillar, the
projection of developing the largest integrated source of natural
graphite materials for the energy transition, the general business
and operational outlook of the Company, 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,
the Uatnan Mining Project permits’ status, 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, political and
social acceptability risk, environmental regulation risk, currency
and exchange rate risk, technological developments, the impacts of
the global COVID-19 pandemic and the governments’ responses
thereto, 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 22, 2022, including in the section thereof captioned “Risk
Factors”, which is available on SEDAR at www.sedar.com 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.sedar.com), 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/20230511005311/en/
MEDIA Julie Paquet VP Communications & ESG Strategy
+1-450-757-8905 #140 jpaquet@nmg.com
INVESTORS Marc Jasmin Director, Investor Relations
+1-450-757-8905 #993 mjasmin@nmg.com
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