MATAWINIE GRAPHITE PROJECT. High Purity Flake Graphite Deposit in North America

Transcription

1 MATAWINIE GRAPHITE PROJECT High Purity Flake Graphite Deposit in North America Investor Presentation November :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9

2 CAUTIONARY STATEMENTS Cautionary Statements Regarding Forward Looking Information This presentation contains "forward-looking information" within the meaning of the applicable securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified notably by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock prices; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of graphite; (v) the risk associated with establishing title to mineral properties and assets; (vi) the risks associated with entering into joint ventures; (vii) fluctuations in graphite prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the resulting issuer in securing experienced personnel and financing; * (x) access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the Company; (xii) the risks associated with the various environmental regulations the Company is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) the reliance on key personnel; (xv) liquidity risks;; (xvi) the risk of litigation; and (xvii) risk management. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in graphite prices, exploration and development plans to proceed in accordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws. :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 2

3 SERVING TOMORROW S ECONOMY WITH THE SUSTAINABLE DEVELOPMENT OF OUR NATURAL RESOURCES Our mission is to produce, transform and distribute different types of natural graphite flakes, in a profitable and sustainable way, while meeting the growing needs of the industrial markets motivated by the revolution of renewable energy and electric vehicles. Reliable, low cost player in the traditional graphite market Innovation in the value-added graphite markets Walking the talk : aiming at being the world s first all-electric openpit mine NMG PRESENTATION :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 3

4 COMPANY OVERVIEW SUCCESSFUL TRANSITION FROM EXPLORATION TO DEVELOPMENT / NEAR-TERM PRODUCTION NMG started exploration in 2012, utilizing advanced geophysics technology. The Tony Block Deposit was discovered in Explored over 10,000 km of untapped territories o Only new discovery of graphite in North America since Lac Guéret deposit (Mason Graphite) in 2001 Same geological setting as the only significant graphite mine in N.A. (the one owned by Imerys Graphite & Carbon) Summer 2018: To commission Demo Plant Sept 2018: 2,000t production starts Q4 2018: Bankable Feasibility Study (BFS) H2 2018: Marketing & Sales Agreement Q1 2019: Start Spherical Graphite (SG) plant construction Q1 2019: IBA filing for permit H1 2019: BFS update including value-added Summer 2019: Commissioning Demo SG plant Q1 2020: Project Financing Q2 2020: Mine & Concentrator Construction Starts :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 4

5 NMG S MATAWINIE PROJECT STRATEGICALLY LOCATED NORTH AMERICA S GRAPHITE TRIANGLE IMERYS (Euronext: NK, Market Cap: ~ 5B) Imerys disclosed that Lac-des-Îles mine is nearly depleted, with enough ore through 2020 (Source : Graphite and Graphene Conference, F. Corti, Berlin, Dec 2014) Major industrial French conglomerate with a market value of around 5B euros Proven track record of producing and selling high quality graphite concentrate since 1989 With output varying between 20K to 25K tons per year, it represents 25% to 30% of North American demand :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 5

6 AN EXCEPTIONAL TEAM FROM SENIOR MANAGEMENT ERIC DESAULNIERS, MSc, P. Geo Founder, President, Chief Executive Officer (CEO), Director 12 years of experience as a Professional Geologist with a Masters degree in Geophysics Executed mandates for international companies such as Aramco, Shell, NASA, BRGM and GSC 7 years as an Infantry Officer with Canadian Forces KARL TRUDEAU Chief Operating Officer (COO) Natural graphite operations leader and Mine site manager at Lac-des- Iles from 2011 to 2017 for Imerys Graphite & Carbon Experience worldwide developing mineral deposits into producing assets CHARLES-OLIVIER TARTE, CPA, CMA Chief Financial Officer (CFO) Financial Controller from 2011 to 2016 for Imerys Graphite & Carbon Responsible of the financial management of 3 sites and 2 corporations (Canada & USA): Open pit mining site, value-added processing plant and sales office. TRISTAN C. MENARD Executive Vice-President (EVP), Capital Markets Formerly Portfolio Manager and Associate at Jarislowsky Fraser, a firm managing over $40 billions in assets for private and institutional clients. Holds the Chartered Investment Manager designation ZHENGLI (Andrew) TAN MSc Eng Technical Director Over 20 years of experience in Graphite & Carbon industry Former General Manager of a Value-Added graphite plant in China for SGL Group TO GRAPHITE EXPERTS ARMANDO FARHATE B.Eng, MBA Market Leader Former COO for Nationale de Grafite in Brazil in charge of 3 graphite mining and processing plants Former Natural Graphite Product Director at Imerys Graphite & Carbon PATRICE BOULANGER Ing, MBA Director 20 years of experience in R&D and Sales in the graphite business with SGL Carbon BENOIT BRIERE Plant Manager 25 years operation and customer service experience in graphite at Lacdes-Iles Imerys mine :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 6

7 MARKET OVERVIEW A LANDSCAPE DOMINATED BY CHINA AND THE REFRACTORIES GLOBAL PRODUCTION PER LOCATION 67% Others 19% MAIN USES FOR GRAPHITE Pencils 4% Refractories 35% 15% 9% 7% 2% China India Brazil Canada Other Metallurgy 7% Lubricants and crucibles 10% Batteries 25% ~70% of the offer comes from China The steel industry is the #1 buyer Global yearly consumption: 1,1 million tons Typical mine production: ~10k-20k tpy Current North American Market Status Consumed: 80k tpy vs Produced : 20k tpy For LiB expected growth : 150k tpy :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 7

8 GRAPHITE PRICING (SEP 2018) Lithium Ion Battery (LiB) market has a significant impact since Sept 2017 Source: Benchmark Mineral Intelligence :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 8

9 LI-ION BATTERY MEGAFACTORIES IN CONSTRUCTION An increased graphite demand of 530,000 tpy by 2023 of 1,323,000 tpy by 2028 Capacity 2028: GWh :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 9

10 NORTH-AMERICAN LI-ION BATTERY MARKET EXPECTED SHORT TERM DEMAND OF 150,000 TPY Production capacity: 52k tpa Until: 2045 ON QC Production capacity: ~ 20k tpa NE MI IN TE NC = Demand TX AL = Offer :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 10

11 ROBUST PROJECT ECONOMICS MINING PROJECT (NO VALUE-ADDED PROCESSING) Economic Highlights Feasibility study (2018) Prefeasibility study (2017) Variation Yearly graphite concentrate production 100,000 tonnes 52,000 tonnes +92% Pre-tax NPV (8%) 1,287 M $ 499 M $ +158% Post-tax NPV (8%) 751 M $ 297 M $ +153% Pre-tax IRR 40.6 % 32.4 % +25% Post-tax IRR 32.2 % 25.9 % +24% Life of mine 25.5 years 27 years -6% Pre-tax Payback 2.6 years 2.6 years 0% Post-tax Payback 2.2 years 2.3 years -4% CAPEX 276 M $ (incl. 12.4% - 31 M $ contingency) 181 M $ (incl. 12.5% - 22 M $ contingency) First 5 years average sales price 1,532 $ US / tonnes 1,429 $ US / tonnes +7% Life of mine average sales price 1,730 $ US / tonnes $ US / tonnes +21% OPEX 499 $ / tonnes 539 $ / tonnes -7% +52% All $ in CAD unless indicated otherwise *NMG results based on NI Pre-Feasibility Study for the West Zone **(source: :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 11

12 After-Tax IRR (%) After-Tax 8% (M CAD) SENSITIVITY ANALYSIS 50, , , , , RELATIVE VARIATION (%) RELATIVE VARIATION (%) CAPEX OPEX PRICE CAPEX OPEX PRICE :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 12

13 COMPARABLES & PRODUCT C1 Cost Curve per tonne EBIDTA Curve per tonne NMG ROW NA Based on NMG internal studies of 12 graphite Feasibility Studies NMG expect to be in first decile EBIDTA per tonnes NMG is ready to tackle all markets Products Jumbo (+48 mesh) Large (+80 mesh) Medium (+150 mesh) Fines (-150 mesh) NMG ROW NA NMG Distribution 15% Target market Expandable, Fuel Cell & Traditional 33% Traditional 28% Battery & Traditional 24% Battery & Traditional :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 13

14 VALUE-ADDED TARGETED MARKETS PRICE RANGE OF PRODUCTS Products Jumbo Flakes (+50 mesh) Large Flakes (+80 mesh) Medium Flakes (+100 mesh) Fine Flakes (-100 mesh) Electrochemical Treatment Purification to >99,9% Cg Micronization Shaping Products : Expandable Graphite Purified Graphite Concentrate Purified Micronized Graphite Spherical Graphite Price Range $3,000 - $15,000 USD / ton :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 14

15 NOUVEAU MONDE GRAPHITE S MATAWINIE PROJECT 20,000 m 2 industrial complex currently leased for Phase 1 Demonstration Plant No need for campsite. Access to low cost green hydroelectricity Proximity to infrastructures and potential customers provides strong advantages for building operations with a low environmental footprint LOCATION ADVANTAGES Many options available to minimize Capex and Opex and maximize economics Town of St-Michel-des-Saints, with an industrial history, is located 5 km from potential mine sites with skilled labor & all needed infrastructure Only 150km north of Montreal with all-year access to public roads. St-Michel-des-Saints is strategically located for low transportation cost to end-users in North America :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 15

16 MATAWINIE GRAPHITE PROJECT LARGE & QUALITY RESOURCE AT SURFACE West Zone Resource Estimate June 2018 Indicated : 95.8M 4.28% Cg* Inferred : 14M 4.19% Cg 4.69M tons of Graphite Content South Zone Resource Estimate Indicated : 26.3M 3.73% Cg Inferred : 19.2M 3.67% Cg 1.7M tons of Graphite Content * Cut-off Grade :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 16

17 MATAWINIE GRAPHITE PROJECT GENERAL SITE LAYOUT :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 17

18 MATAWINIE GRAPHITE PROJECT PROCESS FLOWSHEET Products Jumbo Flakes (+50 mesh) Large Flakes (+80 mesh) Medium Flakes (+150 mesh) Fine Flakes (-150 mesh) :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 18

19 DEMONSTRATION PLANT 1000 tpy De-risking the marketing & processing of our graphite products :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 19

20 FIRST ALL-ELECTRIC OPEN-PIT MINE :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 20

21 HYDRO QUÉBEC PARTNERSHIP A WORLD LEADER IN BATTERY MATERIALS Research center of the state owned power utility company Hydro-Québec (HQ) Over 800 patents especially in Li-ion, Li-Sulfur and Li-Air battery technologies 70 employees including 27 researchers $20M revenues yearly sourced externally reinvested in R&D HQ is lead by Dr Karim Zaghib, named one of the most influential scientific minds in the world by Clarivate Analytics for 3 years in a row PARTNERSHIP AT A GLANCE Licensing agreement on all HQ existing technologies used for LiB anode material production. Exclusive R&D collaboration to develop new IP on a 50/50 basis and industrialization. AGREEMENT HIGHLIGHTS HQ to assist NMG in setting up a small-scale process in its demonstration plant in Saint-Michel-des-Saints, starting by the end of The success of this small-scale process will lead NMG to eventually building an anode material fabrication plant with a capacity of up to 100k tons per year. The anode material fabrication plant would be in addition to and complementary to NMG s mining project. :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 21

22 RECENT AND UPCOMING MILESTONES Summer 2018: Commission Demo concentrate plant September 2018: 2,000t production starts Q4 2018: Bankable Feasibility Study (BFS) H2 2018: Marketing and sales agreement (off-take) Q1 2019: Start Spherical Graphite (SG) plant construction Q1 2019: IBA filing for permit H1 2019: BFS update including value-added Summer 2019: Commissioning Demo SG plant Q1 2020: Project Financing Q2 2020: Mine & Concentrator Construction Starts :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 22

23 CORPORATE STRUCTURE TSXV:NOU OTCQX:NMGRF FSE:NM9 Share Price (CAD) as of Sept 25, 2018 $0.28 Market Cap (CAD) as of Sept 25, 2018 $43M Shares Outstanding as of Sept 25, 2018 Warrants Options / broker warrants Fully Diluted Shares 172M 53M 14M 239M Cash / Debt (CAD) as of Oct 1 st 2018 ~$5M / $0 Management & Insiders Ownership ~25% *All currency in Canadian Dollars (CAD). Market data and financial data as of Oct 1 st Week Price Chart ($ CAD) :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 23

24 INSTITUTIONAL SHAREHOLDERS Strong Institutional Support (collectively holding about 30% of shares) Largest association of credit unions in North America Québec s largest central labor body Largest pension fund in Canada Major Québec Government fund to invest in Québec mineral exploration companies Québec government development fund Investment Management and Technical Research for Institutional and Professional Investors based in Switzerland Registered portfolio manager and exempt market dealer across Canada Worldwide well established and innovative specialist in the sector of precious metals and commodities :: TSXV:NOU :: OTCQX:NMGRF :: FSE:NM9 24

25 CONTACT INFORMATION Head Office 331 Brassard St-Michel-des-Saints, QC J0K 3B0 Canada Montreal Office 410 St. Nicolas Street, Suite 236 Montreal, QC H2Y 2P5 Canada Contact Eric Desaulniers, President and CEO Mobile: Tristan C. Menard, Executive Vice- President, Capital Markets Mobile: TSXV NOU OTCQX NMGRF FSE NM9