Business
Northern Graphite Announces Second Quarter 2024 Results
Strict cost control measures implemented to preserve working capital and bolster balance sheet ...
About this update from Northern Graphite Corporation
[{"type":"text","content":"Northern Graphite Announces Second Quarter 2024 ResultsStrict cost control measures implemented to preserve working capital and bolster balance sheet Increased output from cornerstone Lac des Iles mine to boost operating incomeNear record graphite sales amid push into new marketsOttawa, Ontario--(Newsfile Corp. - August 29, 2024) - Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG) (the \"Company\" or \"Northern\") is pleased to provide an operating summary and financial highlights for the three and six month periods ending June 30, 2024. The Company's Financial Statements and Management's Discussion and Analysis for the period have been filed on SEDAR+ and posted to the Company's website.\"In the second quarter we took decisive action to manage our cash position to ease the strain on our working capital and provide us with greater flexibility to pursue our growth catalysts, including strict overhead cost cutting measures and the sale of inventory that came with the acquisition of the Lac des Iles (\"LDI\") mine in 2022, and these efforts are bearing fruit,\" said Northern Chief Executive Officer Hugues Jacquemin. \"At the same time, we increased our operating income by ramping up production at LDI and achieving near-record sales volumes to industrial customers for a third consecutive quarter, including sales in new geographies. However, commodity and financial markets remain difficult and in the second quarter the Company was not able to meet all the financial covenants for its senior secured loan and royalty financing, including making the required interest and royalty payments. All defaults have been waived by the lender and royalty holder and discussions are ongoing with respect to amending the terms of our senior secured loan and royalty financing. While the current situation is challenging, the long term outlook for our strategy to sell to the EV battery space remains strong and we continue to implement measures to enable the Company to weather the prevailing environment and carry us through until graphite markets recover.\"Operational Highlights: Driving Our Growth CatalystsTo meet increasing customer demand amid continued near-record sales and to increase operating income, in April the Company moved the plant at its LDI mine to a seven days per week operation, targeting annual nameplate capac...