Northern Graphite Corporation · TSXV:NGC
Northern Graphite — Investor Presentation (May 2021)
24 slides from Northern Graphite's investor presentation, May 2021
Slide 1: A Mineral Development and Green Technology Company
NGC TSXV NGPHF OTCQB A MINERAL DEVELOPMENT AND GREEN TECHNOLOGY COMPANY MAY 2021 N O RT H E R N G R A P H I T E . CO M
Slide 2: 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 3: 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 4: Why Northern Graphite?
WHY NORTHERN GRAPHITE? • Graphite is critical to the green economy • Lithium ion batteries (EVs, grid storage), fuel cells, vanadium redox batteries and graphene all need graphite • The graphite market is dominated by China • Most competing projects in Africa • Only western graphite project that che
Slide 5: What is Graphite?
WHAT IS GRAPHITE? • One of only two natural, pure forms of carbon (diamonds) • “Two-dimensional” flake material • Non-toxic, not a carcinogen • Not burned as fuel, not a source of CO2 • Quality/prices vary with flake size and purity : - +150/+100/+80/+50/+32 mesh sizes - “powder, sand, pepper to par
Slide 6: What is Natural Graphite Used For?
WHAT IS NATURAL GRAPHITE USED FOR? Refractories • 40% of total demand is from the steel industry Not JUST Pencils! • “Fire bricks” that line blast furnaces are 10-25% graphite • Strong, light weight reinforcement that does not melt or burn Industrial Markets • 35% of demand is multiple industrial us
Slide 7: The China Factor
THE CHINA FACTOR • World flake graphite production is approximately 900,000tpa • China produces and consumes 70 to 80% • China produces almost ALL battery anode material (“BAM”) and uses small flake because it is plentiful and cheap • China has large resources of small flake graphite and excess prod
Slide 8: Worldwide Lithium Ion Battery Sales
WORLDWIDE LITHIUM ION BATTERY SALES • $30 billion+ industry growing at 20% per year • Was mainly cell phones, cameras, laptops, etc. • EVs and grid storage are huge markets that are just starting NG C T S XV NG P HF O T CQ B NO RTHE RNG RAP HI TE . COM 8
Slide 9: 200+ Battery Manufacturing Plants in the Pipeline
200+ BATTERY MANUFACTURING PLANTS IN THE PIPELINE Require a 4x increase in world annual graphite production NG C T S XV NG P HF O T CQ B NO RTHE RNG RAP HI TE . COM 9
Slide 10: Automobile Makers Commit Over $300B to EVs
AUTOMOBILE MAKERS COMMIT OVER $300B TO EVS • Major passenger car and light duty vehicle OEM EV strategy announcements NG C T S XV NG P HF O T CQ B NO RTHE RNG RAP HI TE . COM 10
Slide 11: Graphite Requires the Largest Production Increase of Any Battery Mineral
GRAPHITE REQUIRES THE LARGEST PRODUCTION INCREASE OF ANY BATTERY MINERAL • Battery raw material demand will grow between 5x and 13x to feed the megafactories Share of Mineral Demand from Energy Storage (source:IEA) SOURCE: BENCHMARK MINERAL INTELLIGENCE NG C T S XV NG P HF O T CQ B NO RTHE RNG RAP H
Slide 12: Potential Graphite Demand
POTENTIAL GRAPHITE DEMAND Volkswagen Committed $91 Billion to EVs/LiBs • Will require more than 300 gWh of annual LiB supply • One automaker alone needs a 40% increase in annual world natural graphite production by 2025 GM & LG Chem to Build $2.3 Billion LiB Plant in Ohio • One plant like this (or T
Slide 13: The Bissett Creek Advantage
THE BISSETT CREEK ADVANTAGE • 15km from Trans-Canada highway • Close to labor, supplies, infrastructure, natural gas supply • Direct trucking to US markets, five hours from port of Montreal • FS completed for 25,000tpy, 80-100,000tpy capability • Ability to “start small” and expand as the market gro
Slide 14: Simple Mining and Metallurgy
SIMPLE MINING AND METALLURGY • Open pit mining, no overburden • 0.79 waste-to-ore ratio • Bulk sample and pilot plant test completed • Simple flotation flowsheet with coarse grind and few polishing and cleaning steps • Low variability throughout deposit Typical Cross-section of Bissett Creek Orebody
Slide 15: Best Flake Size in the Industry?
CONFIDENTIAL BEST FLAKE SIZE IN THE INDUSTRY? NG C T S XV NG P HF O T CQ B NO RTHE RNG RAP HI TE . COM 15
Slide 16: Project Economics
PROJECT ECONOMICS FS PEA This disclosure is supported only by the (US$) (phase 1) (phases 1&2) sensitivity analyses in the FS and PEA and is intended to reflect a higher initial Annual Production (tonnes) 25,000 44,000 production rate and current estimates $85 of capital and operating costs, exchang
Slide 17: Value Added Processing for Specialty Markets
VALUE ADDED PROCESSING FOR SPECIALTY MARKETS • Chinese large/XL production declining • Only North American mine closing • Opportunity for new large/XL flake mine • Higher prices/margins, less competition • Fuel cells, VRFBs, LiBs, graphene • Expandable/expanded graphite: - flake graphite pressed int
Slide 18: Timeline to Production
TIMELINE TO PRODUCTION Obtain Financing (US$85M) 2021 Complete Permitting 2021 Start Construction 2022 Commercial Production 2023 NG C T S XV NG P HF O T CQ B NO RTHE RNG RAP HI TE . COM 18
Slide 19: Advanced Stage North American Projects
ADVANCED STAGE NORTH AMERICAN PROJECTS Flake Size Distribution Annual Production (tonnes) Flake Size Northern Mason Focus NOU +32 (XXL) 7,000 – – 1,000 +50 (XL) 19,000 7,500 5,300 15,000 +80 (large) 13,500 8,100 12,200 35,000 -80 to +150 (sm./med.) 5,500 7,400 16,500 42,000 -150 (fines) – 28,900 10,
Slide 20: Advanced Stage North American Projects: Operating and Financial Metrics
ADVANCED STAGE NORTH AMERICAN PROJECTS Operating and Financial Metrics ($US) Northern Mason Focus NOU Avg revenue/tonne ($)1 $1,600 $740 $870 $1,000 Operating cost/t ORE2,3 $10 $102 $50 $16 Operating cost/t CON2,3 $660 $525 $500 $500 Margin ($/t) $940 $215 $370 $500 EBITDA4 ($millions) $42 $11 $16 $
Slide 21: Share Structure
SHARE STRUCTURE Shares Outstanding 75,800,756 Options 4,750,000 Warrants 11,554,487 Fully-Diluted 92,105,243 Management & Insiders (F.D.) 8% CDN $4.5 Million in Cash/Investments, No Debt, Very Low Burn Rate NG C T S XV NG P HF O T CQ B NO RTHE RNG RAP HI TE . COM 21
Slide 22: Experienced Management & Board
EXPERIENCED MANAGEMENT & BOARD CEO and Director Gregory Bowes, P.Geo., B.Sc, MBA Formerly Senior VP, Orezone Gold Corporation Director Cam Birge, B.A., B.Ed., M.Sc. President, CTT Pharmaceutical Holdings Inc. Director Iain Scarr, B.Sc (Geology), MBA Former Commercial Director, Rio Tinto industrial m
Slide 23: Northern Checks All the Boxes!
NORTHERN CHECKS ALL THE BOXES! ✓ High quality, highest margin deposit ✓ Highest percentage of L/XL/XXL flake used in fuel cells/VRFBs ✓ Politically stable jurisdiction, most peers in Africa ✓ Construction ready subject to financing ✓ Realistic production level relative to current market ✓ Resources
Slide 24: Greg Bowes CEO
NGC TSXV NGPHF OTCQB GREG BOWES CEO +1 613.241.9959 info@northerngraphite.com N O RT H E R N G R A P H I T E . CO M