Nouveau Monde Graphite Inc · TSX:NOU
Nouveau Monde Graphite — Investor Presentation (May 2022)
38 slides from Nouveau Monde Graphite's investor presentation, May 2022
Slide 1: Powering the Clean Energy Transition
POWERING THE CLEAN ENERGY TRANSITION HIGH-PURITY, CARBON-NEUTRAL ANODE MATERIAL – VERTICALLY INTEGRATED IN NORTH AMERICA May 2022
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 Battery Material to Meet Rapidly Growing Demand
A SUSTAINABLE “Electrification of Everything” and electric vehicle (EV) adoption driving +1000% SOURCE OF demand growth for natural graphite anode material BATTERY North America’s largest and most advanced project providing a localized and MATERIAL TO carbon-neutral alternative to Chinese supply MEE
Slide 5: The Drivers of the Clean Energy Megatrend
+ THE DRIVERS OF THE CLEAN ENERGY MEGATREND » Governments globally are phasing out sales of new internal combustion vehicles 41% STATIONARY ENERGY » EV sales expected to STORAGE reach 16.8M units by 10 YEAR CAGR 2025 THE ENERGY STORAGE REVOLUTION WILL “Electricity to grow twice as DRIVE EXPONENTIAL
Slide 6: Carbon Neutral Yesterday, Today and Tomorrow to Support Global Decarbonization
+ CARBON NEUTRAL YESTERDAY, TODAY AND TOMORROW TO SUPPORT GLOBAL DECARBONIZATION » Historical carbon neutrality secured and climate action plan to TRADITIONAL SPHERICAL GRAPHITE PROCESSING transition to Net Zero by 2030 » All-electric open-pit mine and processing facilities underpinned by clean hydr
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 North America’s largest and only, fully INTEGRATED ANODE integrated lithium-ion battery anode material producer MATERIAL PRODUCER » Targeting carbon neutrality for its entire production value cha
Slide 9: ESG Principles Embedded in the Business Model
+ ESG PRINCIPLES EMBEDDED IN THE BUSINESS MODEL Zero-Harm Philosophy Leadership in Action Health, safety, and environmental Governance and accountability stewardship come first » Experienced and international Board guiding the disciplined » 0 OSHA Recordable Incident Rate1 development of the busines
Slide 10: An Exceptional Market Opportunity
AN EXCEPTIONAL MARKET OPPORTUNITY NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 10 +
Slide 11: 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 12: Positioned to Provide a Localized, Carbon-Neutral Alternative to China
+ NOUVEAU MONDE POSITIONED TO PROVIDE A LOCALIZED, CARBON-NEUTRAL ALTERNATIVE TO CHINA » Graphite mines exist across Feasibility the globe – but 100% is Study supports production of ~10% shipped to China and of global supply processed there for battery CANADA anode materials 2% of flake » Global bat
Slide 13: 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% Cathode (+) Nickel 29% Nickel 43% Nickel 68% Nickel 73% O
Slide 14: Graphite Demand Growth Is Expected to Outpace Other Battery Metals
GRAPHITE 8 000 BATTERY RAW MATERIAL DEMAND GROWTH (kt) DEMAND 7 490 GROWTH IS 7 000 EXPECTED TO OUTPACE OTHER 6 000 5 378 BATTERY METALS 5 000 4 947 299 BATTERY GIGAFACTORIES 4 000 IN THE PIPELINE FOR A 3 548 3 386 COMBINED CAPACITY OF ~6,250 GWh BY 2031 3 000 2 145 Over 500% growth in demand 2 000
Slide 15: 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 16: At the Market's Doorstep – North America Ramping Up Capacity
+AT THE MARKET’S DOORSTEP – NORTH AMERICA RAMPING UP CAPACITY: 700 GWh BY 2031 1 11 21 31 41 51 2 12 22 32 42 52 3 13 23 33 43 53 4 14 24 34 44 54 5 15 25 35 45 55 6 16 26 36 46 56 7 17 27 37 47 57 8 18 28 38 48 58 9 19 29 39 49 59 10 20 30 40 50 60 ELECTRIC VEHICLES BATTERY Industry announcements &
Slide 17: Significant Capacity Being Developed in Europe
+SIGNIFICANT CAPACITY BEING DEVELOPED IN EUROPE: 915 GWh by 2031 1 9 17 25 33 2 10 18 26 34 3 11 19 27 35 4 12 20 28 36 5 13 21 29 37 6 14 22 30 38 7 15 23 31 39 8 16 24 32 40 ELECTRIC VEHICLES BATTERY Industry announcements & Benchmark Mineral Intelligence, March 2022 NMG.com + NYSE: NMG | TSXV: NO
Slide 18: Demand Is Expected to Outstrip Supply
DEMAND IS SIGNIFICANT SUPPLY SHORTAGES EMERGING EXPECTED TO AS EV DEMAND RAMPS UP OUTSTRIP SUPPLY BY 2023 – AND CONTINUE BEYOND Market projection for graphite Start of Phase-2 demonstrates structural deficit: production » Graphite demand exceeding global supply by 400,000 tonnes by 2026 » New produc
Slide 19: 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 + 19 +
Slide 20: North America's Largest Vertically-Integrated Source of Green Battery Anode Material
DEVELOPING WHAT IS CURRENTLY NORTH AMERICA’S LARGEST VERTICALLY-INTEGRATED SOURCE OF GREEN BUSINESS PARAMETERS BATTERY ANODE MATERIAL » 100,000 tpa of high-purity flake graphite production planned at the World’s first all-electric open- pit mine (only 120 km from Montréal) » Converted locally to bat
Slide 21: Phase 1 Anode Material Plant De-Risks Fully-Integrated Development
+ PHASE 1 ANODE MATERIAL PLANT DE-RISK THE COMPANY’S FULLY-INTEGRATED DEVELOPMENT MATAWINIE BÉCANCOUR High-purity flake Value-added conversion: Battery anode material and specialty products Each step has been engineered to add value and increase potential margins. With planned Flake graphite Spheric
Slide 22: Full Integration Provides Operational Flexibility
FULL INTEGRATION ILLUSTRATIVE PRODUCT FLOW PROVIDES OPERATIONAL Illustrative Prices FLEXIBILITY Matawinie flake Bécancour battery Anode material (42 ktpa) $7,307/T (3) concentrate material conversion Marketing diversification (100 ktpa) (60 ktpa) Purified jumbo flakes within three pillars: (3 ktpa)
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 COMBINATION OF ADVANTAGES Established, sustainable Abundant, affordable Rich in critical and Attractive and stable ecosystem and ongoing and clean energy (36% strategic minerals
Slide 24: Downstream Activities Fast Tracked Through 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 “We have chosen Bécancour as our hub, our battery valley.” – Pierre Fitzgibbon, Québec Ministry of Economy Phase 1 and 2 plans are secured in Bécancour, with the potential for Phase 3 expansion as upside » 200,000 m² of land near ra
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 deposit in 2015 » Situated within the community of Saint- Michel-d
Slide 27: Civil Works Launched, 8-km Access Road Built
CIVIL WORKS LAUNCHED 8-KM ACCESS ROAD BUILT NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A
Slide 28: Matawinie Phase-2 Concentrator
MATAWINIE PHASE-2 CONCENTRATOR 100,000 tpa of High-Purity Natural Flake NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 28 +
Slide 29: 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 30: 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 31: World-Class Industry and Technology Partners Support Strong Internal Team
WORLD-CLASS » Our experienced and diverse global team of 95+ professionals will INDUSTRY AND be the foundation for our expected success TECHNOLOGY » Strong internal technical team consisting of: PARTNERS − 7 PhD, 3 MSc, 18 engineers − Decades of expertise in graphite production with leading operator
Slide 32: Shareholder Value Drivers: Next 12 Months
+ SHAREHOLDER VALUE DRIVERS: NEXT 12 MONTHS We believe we are positioned to » Production of FULLY-INTEGRATED ANODE MATERIAL in our plant scheduled for become the only fully-integrated, H1-2022 carbon-neutral battery anode company in the world. » Intensification of qualification of battery anode prod
Slide 33: Expected Shareholder Value Drivers: Next 5 Years
+ EXPECTED SHAREHOLDER VALUE DRIVERS: NEXT 5 YEARS » Commission “Matawinie Mine” – targeted to be 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 cornerst
Slide 34: Sound Capital Structure
SOUND MARKET INFORMATION (as at May 2, 2022) 1 CAPITAL Share price (C$) CAD 7.81 USD 6.09 STRUCTURE Shares outstanding (M) 55.4 Well capitalized with strong Market capitalisation ($M) 431 334 institutional support Cash ($M) 2 62.3 Management & insider ownership ~37% MAJOR SHAREHOLDERS Options (M) 4.
Slide 35: Appendix
APPENDIX NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 35 +
Slide 36: 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 Ind
Slide 37: Innovative Model for Co-Disposal of Tailings
+ INNOVATIVE MODEL FOR CO-DISPOSAL OF TAILINGS FINAL SITE RESTORATION 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 over the long term YEA
Slide 38: 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 Marc Jasmin Montréal (Québec) H3C 1V3 Twitter Director, Investor Relations Canada YouTube +1 450 757-8905 #993 LinkedIn mjasmin@nmg.com NMG.com + NYSE: NMG | TSXV: NOU |
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