Nouveau Monde Graphite Inc · TSX:NOU
Nouveau Monde Graphite — Investor Presentation (July 2021)
37 slides from Nouveau Monde Graphite's investor presentation, July 2021
Slide 1: Powering the Clean Energy Transition
POWERING THE CLEAN ENERGY TRANSITION High-purity, carbon-neutral anode materials – vertically integrated in North America July 2021 NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A
Slide 2: Cautionary Statements Regarding Forward Looking Information
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION This presentation contains forward-looking statements which relate to future events or future performance and reflect management's expectations and assumptions regarding the Company’s growth, results, performance and business prospects and
Slide 3: Market and Industry Data; Cautionary Note to United States Investors
MARKET AND INDUSTRY DATA This presentation includes market share information and industry data and forecasts, which we obtained from independent industry publications. Although we believe these sources to be reliable, we have not independently verified any of the data nor ascertained the underlying
Slide 4: A Sustainable Source of Advanced EV Battery Material
A SUSTAINABLE SOURCE OF “Electrification of Everything” and electric vehicle (EV) adoption driving +1000% demand growth for natural graphite anode material ADVANCED EV BATTERY Western World’s largest and most advanced project providing a localized and MATERIAL TO carbon-neutral alternative to Chines
Slide 5: The Drivers of the Clean Energy Megatrend
+THE DRIVERS OF THE CLEAN ENERGY MEGATREND » Governments globally are 41% phasing out sales of new internal combustion vehicles » By 2022 there are expected to be over 500 different EV STATIONARY ENERGY models globally STORAGE 10 YEAR CAGR THE ENERGY STORAGE REVOLUTION WILL “Electricity to grow twic
Slide 6: A Business Underpinned by Carbon-Neutral and Sustainable Development
+ A BUSINESS UNDERPINNED BY CARBON-NEUTRAL AND SUSTAINABLE DEVELOPMENT » All-electric open-pit mine and processing facilities TRADITIONAL SPHERICAL GRAPHITE PROCESSING − discussions ongoing with leading global equipment manufacturers to provide the electrified fleet − dedicated low-cost (~C$0.04/KWh
Slide 7: The Potential Evolution of Nouveau Monde as a Global Anode Material Leader
+ THE POTENTIAL EVOLUTION OF NOUVEAU MONDE AS A GLOBAL ANODE MATERIAL LEADER OUR PLAN OUR GOAL OUR VISION PHASE 1 PHASE 2 PHASE 3 2017-2022 2023-2025 2025+ “DE-RISKING” EXECUTION GROWTH » Demonstration facilities for » 45,000 tonnes per annum Planning underway to potentially: fully-integrated operat
Slide 8: Vertical Integration to Deliver Value-Added Lithium-Ion Battery Anode Material
+ VERTICAL INTEGRATION TO DELIVER VALUE-ADDED LITHIUM-ION BATTERY ANODE MATERIAL » Planned to become the Western World’s largest, and North America’s INTEGRATED ANODE only, fully integrated lithium-ion battery anode material producer MATERIAL PRODUCER » Targeting carbon neutrality for its entire pro
Slide 9: An Exceptional Market Opportunity
AN EXCEPTIONAL MARKET OPPORTUNITY NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 9 +
Slide 10: Graphite 101 Key Themes
Unprecedented growth in Electric Vehicle adoption and production driving GRAPHITE 101 demand for Lithium-Ion Batteries KEY THEMES Lithium-Ion Battery demand from grid storage applications to surpass traditional portables by 2024 Graphite is an essential input for Lithium-Ion Batteries making up >95%
Slide 11: Electric Vehicle Adoption and Stationary Applications Driving Growth in Battery Production Capacity
+ ELECTRIC VEHICLE ADOPTION AND STATIONARY APPLICATIONS DRIVING GROWTH IN BATTERY PRODUCTION CAPACITY EV Adoption and Vehicle Sales LiB Demand in GWh Lithium-Ion Battery EV Penetration 3% 11% 28% 2,500 Rate 2,380 demand is a function of 35 growth in battery demand: 31 2,000 » Demand for electric veh
Slide 12: Graphite Is Fundamental to Every Battery Chemistry
+ GRAPHITE IS FUNDAMENTAL TO EVERY BATTERY CHEMISTRY » Graphite dominates half the lithium-ion battery – 1.2kg per Kwh required to drive strong demand LFP NMC 111 NMC 532 NMC 811 NCA Lithium 17% Lithium 15% Lithium 16% Lithium 16% Lithium 11% Nickel 29% Cathode (+) Nickel 43% Nickel 68% Nickel 73% O
Slide 13: Flake Graphite Demand Growth Is Expected to Outpace Other Battery Metals
FLAKE GRAPHITE DEMAND BATTERY RAW MATERIAL DEMAND GROWTH (kt) GROWTH IS 5,000 4,920 EXPECTED TO OUTPACE OTHER BATTERY METALS 4,000 3,533 3,259 » In aggregate, including non- 3,000 lithium-ion demand, Benchmark expects demand for natural flake 2,336 2,431 graphite to grow from approximately 771 kt in
Slide 14: High-Purity Natural Flake Graphite Is Key to Meeting Battery Demand Through 2030
+ HIGH-PURITY NATURAL FLAKE GRAPHITE IS KEY TO MEETING BATTERY DEMAND THROUGH 2030 Nouveau Monde’s high-purity anode material is GRAPHITE USES BATTERIES SPLIT (2) well-positioned, with two strong tailwinds: » Growth in demand for graphite from lithium- ion batteries » Growth in the proportion of nat
Slide 15: Significant Battery Capacity Installations in the U.S. and Europe Underpins Demand
+ SIGNIFICANT BATTERY CAPACITY INSTALLATIONS IN THE U.S. AND EUROPE UNDERPINS DEMAND » We expect Nouveau Monde to be the most advanced, low cost, large scale & fully vertically integrated supplier in the Western World » ~1,265 GWh of battery capacity being built in North America & Europe(1) » Reliab
Slide 16: Positioned to Provide a Localized, Carbon-Neutral Alternative to China
+ NOUVEAU MONDE POSITIONED TO PROVIDE A LOCALIZED, CARBON-NEUTRAL ALTERNATIVE TO CHINA Feasibility Study supports » Graphite mines exist across production the globe – but 100% is of ~10% of global shipped to China and supply processed there for battery Canada = 2% of flake anode materials » Global b
Slide 17: Demand Is Expected to Outstrip Supply
DEMAND IS EXPECTED TO OUTSTRIP SUPPLY SIGNIFICANT SUPPLY SHORTAGES EMERGING AS EV DEMAND BY 2023 – AND RAMPS UP CONTINUE BEYOND 500 000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Market projection for natural graphite: 0 » Graphite demand exceeding global MARKET BALANCE (K
Slide 18: Facilitating a Green, Local Supply of a Strategic and Critical Material
FACILITATING A GREEN, LOCAL SUPPLY OF A STRATEGIC AND CRITICAL MATERIAL NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 18 +
Slide 19: Western World's Largest Vertically-Integrated Source of Green Battery Anode Material
+ DEVELOPING WHAT IS CURRENTLY THE WESTERN WORLD’S LARGEST VERTICALLY-INTEGRATED SOURCE OF GREEN BATTERY ANODE MATERIAL » 100,000 tpa of high-purity flake graphite production planned at the World’s first all- electric open-pit mine (only 120km from Montréal) » Converted locally to battery anode and
Slide 20: Phase 1 Battery Anode Material Plant De-Risks Fully-Integrated Development
+ PHASE 1 BATTERY ANODE MATERIAL PLANT DE-RISK THE COMPANY’S FULLY-INTEGRATED DEVELOPMENT ~US$1,500 / tonne HIGH-PURITY, SPECIALITY FLAKE ~US$2,150 / tonne US$7,300+ / tonne Each step has been engineered to add value and increase potential margins. With planned operations in close proximity, Nouveau
Slide 21: Phase 1 Battery Anode Material Plant De-Risks Fully-Integrated Development
+ PHASE 1 BATTERY ANODE MATERIAL PLANT DE-RISK THE COMPANY’S FULLY-INTEGRATED DEVELOPMENT » Shaping unit: operating since Feb 2020 » Purification unit: under construction, » Coating unit: under construction, commissioning expected mid-2021 commissioning expected Q1-2022 Mission of Phase 1 LiB Anode
Slide 22: Full-Integration Provides Operational Flexibility
ILLUSTRATIVE PRODUCT FLOW FULL-INTEGRATION PROVIDES OPERATIONAL Illustrative Prices FLEXIBILITY Matawinie flake Bécancour value- Anode material (42 ktpa) $7,307/T (3) concentrate added conversion Marketing diversification (100 ktpa) (60 ktpa) within three pillars : Purified jumbo flakes $6,000$/T (3
Slide 23: Located in a Premier Operating Jurisdiction in North America
+ LOCATED IN A PREMIER OPERATING JURISDICTION IN NORTH AMERICA WE BELIEVE NO OTHER REGION IN THE WORLD CAN MATCH QUÉBEC’S Established, sustainable Abundant, affordable Rich in critical and Attractive and stable ecosystem and ongoing and clean energy (36% strategic minerals and the fiscal and politic
Slide 24: Downstream Activities Fast Tracked Through Choice of Bécancour and Olin Agreement
+ DOWNSTREAM ACTIVITIES FAST TRACKED THROUGH CHOICE OF BÉCANCOUR AND OLIN AGREEMENT We believe Bécancour is an ideal location, with exceptional infrastructure, for Nouveau Monde’s operations » Exclusive 5-year agreement with Olin, a global leader in the supply of chlor alkali products » Nouveau Mond
Slide 25: Scalable Commercial Production with Significant Expansion Potential
SCALABLE COMMERCIAL PRODUCTION WITH SIGNIFICANT EXPANSION POTENTIAL Phase 1 and 2 plans are secured in Bécancour, with the potential for Phase 3 expansion as upside » 200,000 m² of land near railway and port infrastructure has been purchased for commercial operations » Phase 2 operations are schedul
Slide 26: Matawinie – The Largest Graphite Project in the Western World
+ MATAWINIE – THE LARGEST GRAPHITE PROJECT IN THE WESTERN WORLD A World-class mine and concentrator, with huge expansion upside, within only 120 km of Montréal » A well-defined exploration program discovered the World-class Matawinie Phase 1 demo plant 1,000 tpa deposit in 2015 (Operating since 2018
Slide 27: A Unique and Scalable Graphite Source Underpins Integrated Operations
+ A UNIQUE AND SCALABLE GRAPHITE SOURCE UNDERPINS OUR INTEGRATED, FULLY-TRACEABLE OPERATIONS A huge graphite resource at Matawinie, provides Nouveau Monde with expansion potential WEST ZONE MINERAL RESOURCE Mt Cg West Zone Measured 24.5 4.27% Indicated 95.8 4.26% Total Ressources 120.3 4.26% Explora
Slide 28: Scaled Development of Integrated Operations Expected to Grow with Market Demand
+ SCALED DEVELOPMENT OF OUR INTEGRATED OPERATIONS EXPECTED TO GROW WITH STRONG MARKET DEMAND A phenomenal growth opportunity exists as global EV demand accelerates PHASE 1 AND 2 PHASE 3 AND BEYOND » North American fully-integrated Planning underway to potentially: anode material producer » Expand an
Slide 29: World-Class Industry and Technology Partners Support Our Strong Internal Team
WORLD-CLASS » Our experienced and diverse global team of close to 80 professionals will be INDUSTRY AND the foundation for our expected success TECHNOLOGY » Strong internal technical team consisting of: PARTNERS − 6 PhD, 3 MSc, 15 engineers − Decades of expertise in graphite production with leading
Slide 30: Shareholder Value Drivers – Next 12 Months
+ SHAREHOLDER VALUE DRIVERS – NEXT 12 MONTHS » Production of FULLY-INTEGRATED ANODE MATERIAL in our plant We believe we are positioned to become the only fully-integrated, scheduled for Q1-2022 carbon-neutral battery anode company in the world » Intensification of qualification of battery anode prod
Slide 31: Expected Shareholder Value Drivers – Next 5 Years
+ EXPECTED SHAREHOLDER VALUE DRIVERS – NEXT 5 YEARS » Commission “Matawinie” – the World’s first all-electric open-pit mine. Matawinie is scheduled to produce 100,000 tonnes per annum of high-purity graphite flake (the largest in the Western World) » Execute a long-term cornerstone supply agreement
Slide 32: Sound Capital Structure
SOUND MARKET INFORMATION (as at August 3rd, 2021) (1) CAPITAL CAD USD STRUCTURE Share price (C$) Shares outstanding (M) 8.44 47 6.76 Market capitalisation ($M) 396 317 Well capitalized with strong Cash ($M) (2) 34 27 institutional support Management & insider ownership ~37% Convertible bond shares (
Slide 33: A Sustainable Source of Advanced EV Battery Material
A SUSTAINABLE SOURCE OF “Electrification of Everything” and electric vehicle (EV) adoption driving +1000% demand growth for natural graphite anode material ADVANCED EV BATTERY Western World’s largest and most advanced project providing a localized and MATERIAL TO carbon-neutral alternative to Chines
Slide 34: Appendix: Matawinie Project Economics & Technical Data
APPENDIX Matawinie Project Economics & Technical Data NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 34 +
Slide 35: Resource and Reserve Summary
+RESOURCE AND RESERVE SUMMARY » Pit-Constrained Mineral Resource Estimate for the West Zone(1) CURRENT RESOURCE (March 19, 2020)8 PREVIOUS RESOURCE (June 27, 2018) 8 Tonnage Grade Cg Tonnage Grade Cg RESOURCE CATEGORY 2 (Mt) 5, 7 (% Cg) 3 (Mt) (Mt) 5, 7 (% Cg) 3 (Mt) Measured 24.5 4.27 1.05 0 0 0 In
Slide 36: Innovative Model for Co-Disposal of Tailings
+INNOVATIVE MODEL FOR CO-DISPOSAL OF TAILINGS MINE SITE – YEAR 1 MINING & TAILINGS PLANNING This innovative management solution is indicative of Nouveau Monde’s unwavering focus on sustainable development and: » helps to avoid acid mine drainage » provides greater environmental and community safety
Slide 37: Green Battery Materials to Power the Energy Revolution
GREEN BATTERY MATERIALS TO POWER THE ENERGY REVOLUTION CORPORATE OFFICE NMG.com CONTACT 995 Wellington Street, Suite 240 Facebook Christina Lalli Montréal (Québec) H3C 1V3 Twitter Director, Investor Relations Canada YouTube +1 438 399-8665 LinkedIn clalli@nouveaumonde.ca NMG.com + NYSE: NMG | TSXV:
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