Noveau Monde is a company that I have liked for well over a year. It was before going to Mines and Money NY and I was researching graphite and came across this incredible developing story in Quebec. What is so impressive about this story is not just the discovery of an impressive amount of graphite but the fact that this will be the first all electric open put mine in the world: 0% emission graphite. This is the leadership we have been expecting from Canada and once again it comes from the private sector, from the capital markets.
Graphite and EVM
Graphite can be found in 3 forms: flake, amorphous and vein graphite. Flake is the most common accounting for 50% of all production while vein graphite represents only 1% of production and can only be found in Sri Lanka.
The key driver is the electric revolution, the electrification of the future. The demand for emission free energy is putting politics in the focal point pinning energy versus environment. The truth though is that this fight is being solved by the mining sector. There are solutions if one believes carbon is the issue causing climate change. The critical metals solving all the ‘carbon’ issues such as graphite, lithium, cobalt, copper and nickel are revolutionizing the electric vehicle market. Graphite is a key component in the lithium-ion battery. Noveau Monde Graphite is leading this revolution with providing the graphite required for lithium-ion batteries and developing the first all electric open pit mine.
A # 2 graphite pencil made of wood weighs between 6 and 10 grams there is up to 70 kgs in an EV. In 2020 we still use a lot of pencils but lets look at the real market and the future for graphite with a projection from BloombergNEF: 500 million EV’s on the road by 2040.
We all know Tesla but VW, BMW, Audi, Rolls Royce – you name it they are making electric versions of their cars. The solution is clear but still the issue is the means by which you recover the metal from the ground. Since the discovery in 2015.
There are 39 Li-Ion battery mega-factories under construction or expansion in the world. Elon Musk suggested you would need 100 Gigafactory’s. Nouveau Monde is strategically positioned to fuel this emerging market. This is the future and having the first all electric open pit mine cannot be celebrated enough!
All Electric Open Pit Mine
As mentioned Noveau Monde is a world leader meeting the call to highlight mining as the solution for carbon emission. An all electric open pit mine! This is the leadership we need to see in Canada and as an investor you should be applauding. The ingenuity, the chutzpah the gauntlet has been dropped. Many see the mining industry as antiquated and Noveau Monde is rising to the challenge.
This is a pivotal year from NM. Not only is this the start of a major mining boom but NM has a long list of milestones to achieve in the next year and you can keep track of them with us. The press release from January 14, 2020 lists the plan. This is outstanding because you can reward the company as they continue to meet milestones and expectations along the way.
In 2015, Nouveau Monde Graphite discovered a high-quality graphite deposit on its Matawinie property located in Saint-Michel-des-Saints, 150 km north of Montreal, Quebec. This discovery led to the results of a feasibility study announced on October 25, 2018. The feasibility study demonstrated the high profitability of the project with a projected production of 100,000 tonnes per year of graphite concentrate over a period 25.5 years. with a total probable reserve of 59.8 Mt graded at 4.35 % Cg. Annual production of 100 000 tonnes of graphite concentrate with a recovery rate is 94% and a Purity of finished product: greater than 97 %
The company has a busy year ahead with plans to obtain the required permits for its Matawinie mining project, start construction of its commercial facilities, and launch demonstration operations for its value-added graphite products.
There are few campaigns out there that are as impressive, fun and direct in explaining mining than this one with Graff 1883-Got-Graff. This conveys the message that so many of us having been trying to get out there but focuses in on graphite which most people have no idea is a key component on the electrification of the future.
Overview of 2019
- Offtake and joint marketing and agreement with Traxys Group for 25,000 tonnes of flake graphite concentrate.
- CA$22 million raised in combined capital, including a private placement with leading global mining investor Pallinghurst Group for the operation of the existing flake graphite plant, the construction of a demonstration VAP plant, and working capital.
- A CA$4.2-million grant from the Sustainable Development Technology Canada program to build a pilot plant for purified spherical graphite. Signing of a predevelopment agreement with the Manawan Atikamekw Council and the Atikamekw Nation Council. Receipt of notice of admissibility initiating public hearings for the Matawinie project.
- Winner of the Quebec Mineral Exploration Association’s Award of Excellence in Sustainable Development
The global demand of graphite is expanding rapidly in part because of electric vehicle growth, and in part to the growth in battery technology and the electrification of the future.