Nouveau Monde Graphite Inc · TSX:NOU
Nouveau Monde Graphite — Investor Presentation (January 2023)
48 slides from Nouveau Monde Graphite's investor presentation, January 2023
Slide 1: Green Battery Materials to Power the Clean Energy Transition
GREEN BATTERY MATERIALS TO POWER THE CLEAN ENERGY TRANSITION High-Purity, Carbon-Neutral Anode Material – Vertically Integrated In North America January 2023
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: 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 STATIONARY ENERGY » EV sales expected to STORAGE reach 21M units by 20251 10 YEAR CAGR THE ENERGY STORAGE REVOLUTION WILL “Electricity to grow twice as DRIVE EXPONENTIAL f
Slide 6: A Sustainable Source of Battery Material to Meet Rapidly Growing Demand
A SUSTAINABLE “Electrification of Everything” and electric vehicle (EV) adoption driving SOURCE OF exponential demand growth for natural graphite anode material BATTERY MATERIAL TO North America’s largest and most advanced operation providing a localized and carbon-neutral alternative to Chinese sup
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: 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 High-purity flake graphite Large volume production of flake graphite concentrate Mine and concentrator to produce 103 ktpa of high-purity flake concentrate UATNAN Mine
Slide 9: The Potential Evolution of NMG as a Global Anode Material Leader
+ THE POTENTIAL EVOLUTION OF NMG 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 » Matawinie Mine: ~103 ktpa of high- » Develop the Uatnan Mining fully-integrated operations
Slide 10: 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 » 1.53 OSHA Recordable Incident Rate1 development of the busi
Slide 11: Carbon Neutral Yesterday, Today and Tomorrow
+ 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 12: Industry-Leading Climate Change Impact
+INDUSTRY-LEADING CLIMATE CHANGE IMPACT » Cradle-to-gate ISO-compliant life Extraction and Advanced GWP GWP of NMG’s CSPG cycle assessment verified by 3rd concentration manufacturing (kg CO2 eq per kg) (kg CO2 eq per kg) party China China 14.1 » Hydroelectricty leveraged at Mozambique U.S. 6.1 minin
Slide 13: An Exceptional Market Opportunity
AN EXCEPTIONAL MARKET OPPORTUNITY NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 13 + PROPRIETARY & CONFIDENTIAL
Slide 14: 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 15: NMG Positioned to Provide a Localized, Carbon-Neutral Alternative to China
+ NMG 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 battery and E
Slide 16: 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 17: Graphite Demand Growth Is Expected to Outpace Other Battery Metals
GRAPHITE 10 000 BATTERY RAW MATERIAL DEMAND GROWTH (kt) 9 628 DEMAND GROWTH IS 9 000 EXPECTED TO 8 000 OUTPACE OTHER 7 000 BATTERY METALS 6 585 6 243 6 000 363 BATTERY GIGAFACTORIES 5 000 IN THE PIPELINE FOR A 4 262 COMBINED CAPACITY OF 4 083 4 000 ~8,020 GWh BY 2031 3 000 2 538 Nearly 675% growth i
Slide 18: At the Market's Doorstep – North America Ramping Up Capacity
+AT THE MARKET’S DOORSTEP – NORTH AMERICA RAMPING UP CAPACITY: 1,046 GWh BY 2031 A1 CV GM LE POS STD BASF CH HD LGC PR SP BO DAI HY LGE QS ST BS DA IM3 LT RV SU BMW EL JP MG ROS TES BL END JM MAZ SF TY BRV ENV JC MB SS UC BRP FK K2 NS SES VA BYD FD KIA NB SI VW C4V FL KC NB SKI VO CD FR KP PS STV XA
Slide 19: And So Is Europe
+AND SO IS EUROPE: 1,193 GWh by 2031 ACC BRV EVE LC PSA ST AK BYP FAM LGC QS SV AP CLB FAR LIA RE TER AX CTL FR MES ROS TES BV CF GSY MV SF VAR BY CC H3D MRW SS VK BR DAI IMP NV SCB VW BMW EES INB PS SEA WM BL ENV ITV P4T SKI ELECTRIC VEHICLES BATTERY Industry announcements & Benchmark Mineral Intel
Slide 20: 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 Projected start of demonstrates structural deficit: Phase-2 production » Graphite demand exceeding global supply by 400,000 tonnes by 2026 »
Slide 21: Flake Graphite Prices Continue to Rise
+ FLAKE GRAPHITE PRICES CONTINUE TO RISE AMID SHIFT IN BATTERY MATERIAL MARKET CONDITIONS » High-purity natural flake graphite is key to meeting battery demand through 2030 » Projected market deficit of nearly 2 million tpa by the end of the decade ~11% INCREASE IN FLAKE » Battery and EV manufacture
Slide 22: Inflation Reduction Act
+INFLATION REDUCTION ACT $370 billion US dedicated to the climate agenda » Incentives for the purchase of electric vehicles » Measures for the development of charging infrastructure » Eligibility criteria for credits related to battery composition, component source − After 2024, critical minerals th
Slide 23: 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 + 23 + PROPRIETARY & CONFIDENTIAL
Slide 24: Fully-Integrated Development Supported by Phase 1 Operations
+ FULLY-INTEGRATED DEVELOPMENT SUPPORTED BY PHASE 1 OPERATIONS MATAWINIE BÉCANCOUR High-purity flake Advanced materials for energy and niche applications Each step is engineered to Flake graphite Spherical graphite Purified graphite Coated spherical purified graphite add value and CONCENTRATION SHAP
Slide 25: Full Integration Provides Operational Flexibility
FULL PHASE 2: PRODUCTION FLOW INTEGRATION PROVIDES Matawinie Mine OPERATIONAL ALL-ELECTRIC MINING 2,550,506 tpa 4.23% Cg FLEXIBILITY CONCENTRATOR Graphite concentrate US$1,675/tonne Production diversification 103,328 tpa 39,553 tpa C$2,135/tonne 97% Cg within three pillars to Flexibility to redirect
Slide 26: Matawinie Mine
+ PHASE 2 MATAWINIE MINE A world-class mine and concentrator, PHASE 2 within only 120 km of Montréal » Responsible mining operations with all-electric fleet, innovative tailings management, extensive water and biodiversity protection program, plus progressive reclamation » Situated within the commun
Slide 27: A Unique and Scalable Graphite Source Underpins Our Operations
+ A UNIQUE AND SCALABLE GRAPHITE SOURCE UNDERPINS OUR INTEGRATED, FULLY-TRACEABLE OPERATIONS A huge graphite resource at Matawinie, provides NMG with expansion potential MINERAL RESOURCES & RESERVES WEST ZONE Mt Cg West Zone Measured 28.5 4.28% Indicated 101.8 4.26% Total Ressources 130.3 4.26% Expl
Slide 28: Matawinie Phase-2 Concentrator
MATAWINIE PHASE-2 CONCENTRATOR ~103 ktpa of high-purity natural flake NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 28 + PROPRIETARY & CONFIDENTIAL
Slide 29: Advanced Manufacturing Underpinned by Strategic Location and Proprietary Technologies
+ ADVANCED MANUFACTURING UNDERPINNED BY STRATEGIC LOCATION AND PROPRIETARY TECHNOLOGIES We believe Bécancour is an ideal location, with exceptional infrastructure, for NMG’s operations » Phase-1 purification plant operating within Olin’s facility » Proprietary green thermochemical purification techn
Slide 30: Bécancour Battery Material Plant
Purification PHASE 2 PHASE 2 BÉCANCOUR BATTERY MATERIAL PLANT Scalable commercial production with significant expansion potential onsite Coating Shaping Phase 2 plant with production capacity for ~43 ktpa of anode material and ~3 ktpa of purified jumbo flake » Advanced manufacturing facility regroup
Slide 31: Uatnan Mining Project: Among the World's Largest Graphite Projects in Development
+ PHASE 3 UATNAN MINING PROJECT: AMONG THE WORLD’S LARGEST GRAPHITE PROJECTS IN DEVELOPMENT » Located in Northern Québec, in a region renowned for its resources and associated industry − Accessible year-round by highway 389 and logging roads » Property wholly owned (100%) by Mason Graphite » Open-pi
Slide 32: Located in a Premier Operating Jurisdiction in North America
+ LOCATED IN A PREMIER OPERATING JURISDICTION IN NORTH AMERICA QUÉBEC’S COMBINATION OF STRATEGIC ADVANTAGES The Québec Government Established, sustainable Abundant, affordable Rich in critical and Attractive and stable ecosystem and ongoing and clean energy (36% strategic minerals and the fiscal and
Slide 33: Industry and Technology Partners Support Our Strong Internal Team
INDUSTRY AND » Our strong internal technical team consisting of 100+ professionals TECHNOLOGY support our growth and continued innovation: PARTNERS − 7 PhD, 3 MSc, 35 engineers − Decades of expertise in graphite production acquired at leading operators including SUPPORT OUR Imerys, SGL Group and BTR
Slide 34: Commercial Agreement: Panasonic Energy
+COMMERCIAL AGREEMENT: PANASONIC ENERGY » MoU based on multi-year offtake for active QUALIFICATION anode material » MoU/Offtake agreement to provide pathway A Sample B Sample C Sample for finalizing product qualification Sample: 1kg to 1 t 1 t to 10 t 40-80 t » NMG’s lowest CO2 material footprint in
Slide 35: Shareholder Value Drivers: Next 12 Months
+ SHAREHOLDER VALUE DRIVERS: NEXT 12 MONTHS » OPTIMIZATION OF FEASIBILITY STUDY based on Panasonic’s specs Disciplined execution of growth plan to establish a traceable, » Conversion of MoU offtake with Panasonic into DEFINITIVE OFFTAKE local supply of a critical battery » Closing of PROJECT FINANCI
Slide 36: Expected Shareholder Value Drivers: Next 5 Years
+ EXPECTED SHAREHOLDER VALUE DRIVERS: NEXT 5 YEARS » Commission FULLY-INTEGRATED PRODUCTION AT PHASE 2: Matawinie Mine and Bécancour Battery Material Plant » Execute a long-term cornerstone supply agreement with a future major customer » MAP PHASE 3 EXPANSION for natural graphite and anode material
Slide 37: Financial Parameters
FINANCIAL PARAMETERS NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 37 + PROPRIETARY & CONFIDENTIAL
Slide 38: Summary of Phase-2 Economic Highlights
+SUMMARY OF PHASE-2 ECONOMIC HIGHLIGHTS ECONOMIC HIGHLIGHTS (in CAD*) MATAWINIE BÉCANCOUR INTEGRATED Unit Feasibility Metrics Pre-tax Net Present Value (NPV) (8 % discount rate) 986 1,374 2,360 C$ million After-tax Net Present Value (NPV) (8 % discount rate) 571 1,010 1,581 C$ million Pre-tax Intern
Slide 39: Overview of Preliminary Economic Highlights – Uatnan Mining Project
PHASE 3 ECONOMIC HIGHLIGHTS Uatnan Mining Project OVERVIEW OF PRELIMINARY Pre-tax NPV (8% discount rate) C$ 3,613 M ECONOMIC After-tax NPV (8 % discount rate) C$ 2,173 M HIGHLIGHTS Pre-tax IRR 32.6% After-tax IRR 25.9% Pre-tax payback 2.8 years After-tax payback 3.2 years Concentrate selling price U
Slide 40: Sound Capital Structure
SOUND MARKET INFORMATION (as at January 17, 2023) 1 CAD USD CAPITAL Share price ($) 6.90 5.17 STRUCTURE Market capitalization ($M) 386 289 Pro-forma cash ($M) 81.5* Well capitalized with strong institutional support Convertible debenture ($M) 67.5* MAJOR INVESTORS Basic shares (M) 55.9 Options (M) 3
Slide 41: Appendix
APPENDIX NMG.com + NYSE: NMG | TSXV: NOU | FSE: NM9A + 41 + PROPRIETARY & CONFIDENTIAL
Slide 42: Matawinie Updated Resource and Reserve Summary
+ MATAWINIE UPDATED RESOURCE AND RESERVE SUMMARY Current Pit-Constrained Mineral Resource Estimate for the West Zone(1) Current Resource (May 20, 2022) 7 Mineral Resource Category2 Tonnage (Mt)5,6 Grade (% Cg)3 Contained Graphite (Mt) Measured 28.5 4.28 1.22 Indicated 101.8 4.26 4.33 Measured + Indi
Slide 43: Innovative Model for Co-Disposal of Tailings
+ INNOVATIVE MODEL FOR CO-DISPOSAL OF TAILINGS FINAL SITE RESTORATION This innovative management solution is indicative of NMG’s unwavering focus on sustainable development and: » helps to avoid acid mine drainage » provides greater environmental and community safety over the long term YEAR 1 YEAR 1
Slide 44: Uatnan – Current Mineral Resource Estimate
+ UATNAN – A WORLD-CLASS DEPOSIT CURRENT MINERAL RESOURCE ESTIMATE Notes : 1. The Mineral Resources provided in this table were estimated IN-PIT CONSTRAINED MINERAL RESOURCES Tonnes (Mt) Grade (% Cg) Cg (Mt) by M. Rachidi P.Geo., and C. Duplessis, Eng., (QPs) of GoldMinds Geoservices Inc., using cur
Slide 45: Phase 2: CAPEX Costs
+PHASE 2: CAPEX COSTS Initial Initial CAPEX Breakdown (in CAD*) CAPEX Breakdown (in CAD*) Costs Costs Matawinie Mine CAPEX Bécancour Plant CAPEX Direct Costs 373,383,967 Direct Costs 631,071,605 Mine Development 52,487,610 Shaping 176,658,085 Mining Facilities 49,470,357 Purification 261,442,517 Pro
Slide 46: Phase 2: OPEX Costs
+PHASE 2: OPEX COSTS Cost per year % of OPEX Breakdown (in CAD*) Cost per tonne (1) (2) (LOM average) total costs Matawinie Mine OPEX Mining 17,330,983 168 30% Ore Processing 26,083,095 252 45% Tailings 5,655,610 55 10% General and Administration 3,750,866 36 6% Transport Cost to Bécancour 2,769,863
Slide 47: Climate Targets
+CLIMATE TARGETS » Maintain carbon neutrality status » Reduce as much as possible − Full electrification − Continuous improvement − Substitution of carbon-based materials − R&D − Industrial synergies and circular economy » Reach Net Zero by 2030 » Transparent disclosure Environmental footprint, comm
Slide 48: 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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