Northern Graphite Corporation · TSXV:NGC
Northern Graphite — Investor Presentation (February 2020)
25 slides from Northern Graphite's investor presentation, February 2020
Slide 1: Northern Graphite Corporation: A Development Ready Company
N G C : T S X V, N G P H F : O T C Q B Northern Graphite Corporation A Development Ready Company 1
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation may contain “forward-looking information” which may include, but is not limited to, statements with respect to: timing of the receipt of governmental approvals and/or acceptances; targets, estimates and assumptions in respect of production and prices; amo
Slide 3: Cautionary Statement Regarding Mineral Resources
Cautionary Statement Regarding Mineral Resources This presentation and other information released by the Company uses the terms “resources”, “measured resources”, “indicated resources” and “inferred resources”. United States investors are advised that, while such terms are recognized and required by
Slide 4: Why Northern Graphite?
Why Northern Graphite? • Battery/EV graphite demand growing rapidly • Market needs an alternative to Chinese supply • Market needs more XL/XXL flake production • Only North American mine closing • Competitors mainly in Africa • Only western graphite project that checks all the boxes: - Realistic pro
Slide 5: What is Natural Graphite?
What is Natural Graphite? • One of only two natural, pure forms of carbon (diamonds) • “Two-dimensional” flake material • Prices increase with flake size - small/med/large/XL/XXL - +150/+100/+80/+50/+32 mesh sizes - “powder, sand, pepper to parsley” in size - prices US$700 to US$2,250/tonne • Corros
Slide 6: The China Factor
The China Factor • World flake graphite production is approximately 750,000tpa • China produces and consumes 70 to 80% • Chinese has very large resources of small flake graphite and excess production capacity (mainly used in the battery market) • Chinese production of XL/XXL flake declining, startin
Slide 7: A Tale of Two Markets
A Tale of Two Markets Industrial markets • 40% of total demand is refractories for the steel industry • 35% of demand is multiple smaller markets including thermal management in electronics, batteries, brake & clutch parts, gaskets, fire retardants, fuel cells, pencils, carbon brushes, building prod
Slide 8: Worldwide Lithium ion Battery Sales
Worldwide Lithium ion Battery Sales • $20 billion+ industry growing at over 20% per year • Was mainly cell phones, cameras, laptops, etc. Image Here • EVs and grid storage are huge markets still in their infancy Source: Avicenne Energy N O R T H E R N G R AP H I T E C O R P O R AT I O N N G C : T S
Slide 9: 103 LiB Manufacturing Plants in Pipeline
103 LiB Manufacturing Plants in Pipeline 20 times increase in capacity 1.2 million tonnes of new graphite production needed by 2023! Source: Benchmark Mineral Intelligence N O R T H E R N G R AP H I T E C O R P O R AT I O N N G C : T S XV | NGPHF: OTCQX 9
Slide 10: Automobile Manufacturers All In on EVs
Automobile Manufacturers All In on EVs Source: MJ Bradley & Associates compilation N O R T H E R N G R AP H I T E C O R P O R AT I O N N G C : T S XV | NGPHF: OTCQX 10
Slide 11: GM and LG Chem plant in Ohio; Volkswagen commits $91 billion
GM and LG Chem announce $2.3 billion LiB plant in Ohio - 10 hours by transport from Bissett Creek Project - No ships, ports, borders - This one plant will require all the production from a mine the size of Northern’s Bissett Creek Project Volkswagen commits $91 billion to develop EVs and buy LiBs -
Slide 12: Battery Demand not yet affecting Graphite Prices
Battery Demand not yet affecting Graphite Prices • Small flake prices will rise when EV growth uses up excess capacity • +50 mesh (XL) prices have better supply/demand Source: Benchmark Mineral Intelligence N O R T H E R N G R AP H I T E C O R P O R AT I O N N G C : T S XV | NGPHF: OTCQX 12
Slide 13: Four Reasons Why Graphite has a Bright Future
Four Reasons Why Graphite has a Bright Future 1. Chinese quality/security of supply issues 2. EVs, Grid Storage and the megafactories ➢ Annual world graphite production is 750,000 tonnes ➢ Benchmark – additional 1.2M tonnes needed in 2023 ➢ MinMetals - supply shortage in 2020, additional 1.2M tonnes
Slide 14: The Bissett Creek Advantage
The Bissett Creek Advantage • FS completed • Major mining permit received • 15 kms from Trans Canada Hwy • 5 hours from port of Montreal • 12 hours from NE US markets • <1 hour from nearby towns • Near to mining service centers ➢ Equipment dealers, suppliers, contractors, spare parts • 15 kms from n
Slide 15: Simple Mining and Metallurgy
Simple Mining and Metallurgy • Open pit mining, no overburden • 0.79 waste-to-ore ratio • Bulk sample and pilot plant test completed • Flake easily separated from rock/impurities • Simple flotation flowsheet with coarse grind and few polishing and cleaning steps • Low variability throughout deposit
Slide 16: Project Economics
Project Economics FS PEA (US$) (phase 1) (phases 1&2) Annual Production (tonnes) 25,000 45,000 Capital Cost (millions) $85 $85 Expansion Capital (millions) - $35 Revenue per tonne $1,700 $1,700 Operating costs/tonne $675 $600 Mine Life (years) 30 22 After tax IRR (%) 27.7 30+ After tax NPV (millions
Slide 17: Value Added Processing for Specialty Markets
Value Added Processing for Specialty Markets • Ideal for Northern’s XL/XXL production • Higher prices/margins, less competition • Not graphene or batteries! • Expandable/expanded graphite ➢ flake graphite pressed into foils/sheets ➢ used in thermal management in consumer Image Here electronics, fire
Slide 18: North American Development Projects
North American Development Projects Flake Size Distribution Annual Production(tonnes) Flake Size Northern Mason Focus NOU +32 (XXL) 5,000 - - - +50 (XL) 9,000 7,500 5,300 15,000 +80 (large) 9,000 8,100 12,200 33,000 -80 to +150 (sm./med.) 2,000 7,400 16,500 28,000 -150 (fines) - 28,900 10,200 24,000
Slide 19: North American Projects
North American Projects Operating and financial metrics ($US) Northern Mason Focus NOU Grade (%) 2.2 28 15 4.4 Avg revenue/t ($)1 $1,500 700 770 900 Operating cost/t ORE2,3 $13 102 50 16 Operating cost/t CON2,3 $695 515 540 490 Margin ($/t) $805 $185 $230 $410 EBITDA4 ($millions) $20 $10 $10 $41 Cap
Slide 20: Timeline to Production
Timeline to Production Approval of Mine Closure Plan received Financing (US$85M) 2020 Operational permitting 2020 Start Construction 2020 Commercial Production 2022 N O R T H E R N G R AP H I T E C O R P O R AT I O N N G C : T S XV | NGPHF: OTCQX 20
Slide 21: Preliminary Mine Financing Plan
Preliminary Mine Financing Plan ($US millions) Equipment Leasing $10 Debt financing $40 Equity $35 Total $85 Value added processing $15 N O R T H E R N G R AP H I T E C O R P O R AT I O N N G C : T S XV | NGPHF: OTCQX 21
Slide 22: Share Structure
Share Structure Shares Outstanding 65,112,756 Options 4,000,000 Warrants 6,200,487 Fully-Diluted 75,313,243 Management & Insiders (F.D.) 9.4% CDN $1.4 million in cash, no debt, very low burn rate N O R T H E R N G R AP H I T E C O R P O R AT I O N N G C : T S XV | NGPHF: OTCQX 22
Slide 23: Experienced Management & Board
Experienced Management & Board Gregory Bowes CEO and Director K. Sethu Raman Director P.Geo., B.Sc, MBA PhD Formerly Senior VP, Orezone Independent Mining Consultant Gold Corporation Cam Birge Director Don Christie Director B.A., B.Ed., M.Sc. CA President, CTT Pharmaceutical Former CFO, Continental
Slide 24: Northern ticks all the boxes!
Northern ticks all the boxes! ✓ Realistic production level relative to target market ✓ Predominantly L/XL/XXL production ✓ Resources to expand as market grows ✓ Reasonable capital cost ✓ Economic at realistic current prices ✓ Located in politically stable country ✓ Major mining permit received, MOU
Slide 25: Thank You
Thank You C O N TA C T Greg Bowes, CEO Tel: +1 (613) 241-9959 Email: info@northerngraphite.com 25
Northern Graphite — Investor Presentation (February 2020) on 6ix