Nouveau Monde Graphite Inc · TSX:NOU
Nouveau Monde Graphite — Shareholder Meeting (June 2024)
34 slides from Nouveau Monde Graphite's shareholder meeting presentation, Jun 27, 2024
Slide 1: Management Update: Annual General & Special Meeting of Shareholders
MANAGEMENT UPDATE ANNUAL GENERAL & SPECIAL MEETING OF SHAREHOLDERS On track to be North America’s largest, fully vertically integrated production of natural graphite to supply battery/EV manufacturers with carbon-neutral active anode material June 27, 2024
Slide 2: Cautionary Statements Regarding Forward Looking Information
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION This presentation contains forward-looking information and forward-looking statements (collectively, “forward-looking statements”), which relate to future events or future performance and reflect management's expectations and assumptions re
Slide 3: Market and Industry Data; Cautionary Note to United States Investors
MARKET AND INDUSTRY DATA Market and industry data presented throughout this presentation was obtained from third party sources and industry reports, publications, websites and other publicly available information. The Company believes that the market and industry data presented throughout this prese
Slide 4: Powering the Clean Energy Transition
POWERING THE CLEAN ENERGY TRANSITION NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 4 + PROPRIETARY & CONFIDENTIAL
Slide 5: On Track to Be North America's First & Largest Fully Integrated Source of Natural Graphite
ON TRACK TO BE » Accelerated adoption of EVs, cleantech and renewable NORTH energies drive significant demand growth for natural graphite AMERICA’S FIRST » Multiyear offtake agreements with Panasonic Energy and GM & LARGEST FULLY engaged in the development of an ESG-driven and reliable North America
Slide 6: Planned to Be North America's Largest Integrated Natural Graphite Producer
+PLANNED TO BE NORTH AMERICA’S LARGEST INTEGRATED NATURAL GRAPHITE PRODUCER MATAWINIE UATNAN MINE & CONCENTRATOR MINE & CONCENTRATOR Flake graphite Large volume production of flake graphite concentrate Mine and concentrator to produce 103 ktpa of high-purity flake concentrate UATNAN Mine and concent
Slide 7: Vertical Integration to Deliver Lithium-Ion Battery Active Anode Material
+VERTICAL INTEGRATION TO DELIVER LITHIUM-ION BATTERY ACTIVE ANODE MATERIAL » Planned to become the North America’s largest and fully integrated lithium-ion battery anode material producer INTEGRATED ANODE » Carbon neutrality across its entire production value chain – “green” MATERIAL PRODUCER operat
Slide 8: Striving to Become an Active Anode Material Leader for the Western World
+ STRIVING TO BECOME AN ACTIVE ANODE MATERIAL LEADER FOR THE WESTERN WORLD OUR PLAN OUR GOAL OUR VISION PHASE 1 PHASE 2 PHASE 3 2017-2023 2024-2027 2028+ “DE-RISKING” EXECUTION GROWTH » Demonstration facilities for » Matawinie Mine: ~103 ktpa of » Uatnan Mining Project fully-integrated operations hi
Slide 9: Only Producer in Industry Leading Segment
+ ONLY PRODUCER IN INDUSTRY LEADING SEGMENT Independent assessment of ESG performance carried out by Benchmark ̶ 79 sustainability indicators reviewed ̶ 60 producers NMG is the sole producer with demonstrated environmental and ethical practices ̶ Rating supports customers’ ESG requirements for respo
Slide 10: Disciplined Execution of Our Business Strategy
DISCIPLINED EXECUTION OF OUR BUSINESS STRATEGY NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 10 + PROPRIETARY & CONFIDENTIAL
Slide 11: Current Priorities Toward Commercial Production
CURRENT COMMERCIAL ENGAGEMENT PRIORITIES Complete offtake for 6 kta of anode Continued qualification and Product development for value TOWARD certification with current material remaining customers creation COMMERCIAL PRODUCTION TECHNICAL & OPERATIONAL ADVANCEMENT Battery-grade sample production and
Slide 12: Offtake and Investment Agreements with Panasonic Energy & General Motors
+OFFTAKE AND INVESTMENT AGREEMENTS WITH PANASONIC ENERGY & GENERAL MOTORS NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 12 + PROPRIETARY & CONFIDENTIAL
Slide 13: Panasonic Energy & GM: Offtakes & Tranche Investment
Offtakes & Tranche 1 Investment PANASONIC ENERGY & GM STRATEGIC INVESTORS US$25M private US$25M private AND LONG-TERM placement placement ANCHOR CUSTOMERS 18 ktpa of active 18 ktpa of active anode material anode material binding offtake binding offtake » Multiyear offtake agreements » Aggregate US$5
Slide 14: Anchor Customers Provide Upside for NMG's Current and Future Production
ANCHOR CUSTOMERS PROVIDE UPSIDE FOR NMG’S CURRENT AND FUTURE PRODUCTION NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A PROPRIETARY & CONFIDENTIAL + 14 +
Slide 15: North America Ramping Up Capacity: 1,464 GWh by 2030
+AT THE MARKET’S DOORSTEP – NORTH AMERICA RAMPING UP CAPACITY: 1,464 GWh BY 2030 AB FD KP PS SS* AT FR LG CT GO MB* SK CU* GM MV ST* EL HD NV TE EN HY ON TY EV* IM PA* VW *TBC A factory has been announced, but its exact location in the United States is to be confirmed. BATTERY MANUFACTURERS Industry
Slide 16: And So Is Europe: 1,210 GWh by 2030
+AND SO IS EUROPE: 1,210 GWh by 2030 AC IN PO SV CL LC PR TA CT LG RE TE EL ME RO VK EN MR SS VO EV NB SK VW* FR NV *TBC A factory has been announced, but its exact location in Eastern Europe is to be confirmed. BATTERY MANUFACTURERS Industry announcements & Benchmark Mineral Intelligence, June 2024
Slide 17: What Slowdown?
+WHAT SLOWDOWN? » 19% year-over-year increase in worldwide sales of electric vehicles » Record global investment in the energy transition: US$1.8 trillion » Global battery production capacity nearing 9.2 TWh by the end of the decade » Energy storage market almost tripled in 2023 Source : Bloomberg,
Slide 18: Inflation Reduction Act Requirements
+INFLATION REDUCTION ACT REQUIREMENTS » Critical battery materials from North American sources − Gradual increase from 40% in 2023 to 80% in 2027 » Additional restrictions on foreign entities of concern − China, Iran, Russia, North Korea − Production from/through these countries, companies registere
Slide 19: Import Tariff on Graphite from China as of 2026
+ IMPORT TARIFF ON GRAPHITE FROM CHINA AS OF 2026 NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 19 + PROPRIETARY & CONFIDENTIAL
Slide 20: China Now Applying Restrictions on Exports
+CHINA NOW APPLYING RESTRICTIONS ON EXPORTS NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 20 + PROPRIETARY & CONFIDENTIAL
Slide 21: New Trends to Emerge as North American Production Picks Up Speed
+ CHINA-FOCUSED PRICING DYNAMICS NEW TRENDS TO EMERGE AS NORTH AMERICAN PRODUCTION PICKS UP SPEED China Forecasted Supply/Demand 1 200 000 Supply Demand 1 000 000 HISTORICAL NATURAL GRAPHITE ANODE PRICES 800 000 600 000 400 000 200 000 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 20
Slide 22: Supply/Demand Dynamics Support Price Appreciation
+ SUPPLY/DEMAND DYNAMICS SUPPORT PRICE APPRECIATION Long-term prices expected to rise » NMG expected to benefit from future higher prices − Each 2% increase in price corresponds to ~10% gain in project IRR based on 2022 Integrated Feasibility Study » Potential for a North American premium over China
Slide 23: Phase 2 Marketing Strategy Overview
+ PHASE 2 MARKETING STRATEGY OVERVIEW High purity, high margin [~8]% of specialty markets Focus on non-lithium-ion revenues2 ~19 ktpa battery end markets Flexibility to redirect Matawinie Mine flake based on market demand 18 ktpa 7-year concentrate 42 ktpa contracted Anode material = 87% of revenues
Slide 24: Acquisition of the Uatnan Mining Project
+ ACQUISITION OF THE UATNAN MINING PROJECT » Positioning NMG as a leading graphite producer with 100% ownership in North America’s two largest and most advanced projected natural graphite operations » Key asset to underpin active anode material production for our Phase 3 − Located in Northern Québec
Slide 25: Phase 2 Project Execution
PHASE 2 PROJECT EXECUTION NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 25 + PROPRIETARY & CONFIDENTIAL
Slide 26: Construction Ready & Early Works Ongoing
MATAWINIE MINE CONSTRUCTION READY & EARLY WORKS ONGOING Preliminary work and detailed planning of execution strategy provide strong footing for launch of construction once minimum financing is reached » Core owner team being assembled » Integrated project team model to BÉCANCOUR BATTERY MATERIAL PLA
Slide 27: Integrated Project Team
+ INTEGRATED PROJECT TEAM Permitting Project controls ENGINEERING PROCUREMENT CONSTRUCTION COMMISSIONING Engineering management Procurement management Construction management Commissioning management Plant / Concentrator design Bid process and PO & contract award Health & Safety Operation team : sup
Slide 28: Booming Industrial Hub
+ BOOMING INDUSTRIAL HUB » Large pool of specialized contractors in construction and industrial services » Current mobilization to be leveraged to maximize synergies, reduce pressure on trades, and ease construction management logistics NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 28 + PROPRIETARY
Slide 29: Path to Zero-Emission Mining
+PATH TO ZERO-EMISSION MINING Active development of zero-emission equipment for the Matawinie Mine thanks to strategic agreements with Caterpillar » Integrated fleet, charging infrastructure and operating site management solution tailored to NMG’s site » Direct involvement from technical and mining
Slide 30: Solid Foundation for Scaling Up
SOLID FOUNDATION FOR SCALING UP NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 30 + PROPRIETARY & CONFIDENTIAL
Slide 31: Strong Equity Holders & a Sound Capital Structure Provide a Solid Foundation
+ STRONG EQUITY HOLDERS & A SOUND CAPITAL STRUCTURE PROVIDE A SOLID FOUNDATION POST TRANSACTION STRUCTURE Basic shares (M) 112.4 Warrants (M) 43.8 16% Convertible notes (M) 2.5 Warrants / convertible notes (M) 2.5 Other reserves (M) 0.6 Other Options (M) 8.4 shareholders 12% Fully diluted shares (M)
Slide 32: Summary of Phase-2 Economic Highlights
+SUMMARY OF PHASE-2 ECONOMIC HIGHLIGHTS ECONOMIC HIGHLIGHTS (in CAD*) MATAWINIE BÉCANCOUR INTEGRATED Unit Feasibility Metrics After-tax Net Present Value (NPV) (8 % discount rate) 571 1,010 1,581 C$ million After-tax IRR 22.2% 20.4% 21.0% % Payback (after-tax) 3.7 4.5 4.2 years Financials Summary Re
Slide 33: Update on Phase 2 Project Financing
+UPDATE ON PHASE 2 PROJECT FINANCING PROJECT FUNDING PLAN PROSPECTIVE KEY FUNDING PARTNERS » Targeted financing the Phase-2 Matawinie Mine and Bécancour Battery Materials Plant with contemplated debt:equity ratio of ~60:40 Debt lead arranger Strategic equity advisor » Advanced discussions with Socié
Slide 34: 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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