Nemaska Lithium Inc NMKEF

NOU.V provides corporate update

[Nic777]

Timely update by the team at Nouveau Monde Graphite.

• Permitting work is progressing as planned.  The government ministry is on track to submit its environmental assessment as per the original date.
• NMG had to comply with the provincial government and temporary shutdown its demonstration plant until April 13^th as this isn’t an essential business activity.
• NMG’s staff and their consultants are teleworking and continues to advance the detailed engineering of the site and concentrator.  They appear to be on track to complete their class 2 estimate by Q3 as planned.

Humanity will get out of this crisis and life will get back to normal although it will forever be altered somehow by this.  Government policies in China, Europe and elsewhere to limit CO2 emissions are unlikely to be altered.  If this crisis is telling us something is that humanity needs to become more resilient and that includes dealing with the climate change issue before it turns into another world crisis.  Hundreds of billions of $$ have been committed by the auto industry and other players to produce zero-emissions vehicles.  I’m expecting these guys to forge ahead.  Delivery companies like Amazon, UPS, Fedex and others have announced huge investments to electrify their fleet.  Just this week, the CEO of Daimler said their strategic plans to electrify their car offering won’t be changed by the coronavirus crisis.

Lastly, the current oil price is totally unsustainable and temporary.  On the world scale, no producer is making money right now, selling its oil at ~$22 Brent.  The Saudis might have a lifting cost below ~$10/bbl but this country needs ~$80 Brent to balance its books.  Anyone who think this price war will continue for several months is delusional.   Just this morning, Goldman Sachs published a report saying that 5 million barrels per day of supply is likely to be shut-in this year.  Add this to the very high decline rate of shale oil and it’s clear to me that the table is being set for a very steep rise in the prise of oil somewhere in 2021-22.  When that happen, that will last for several years and provide a good backwind for the sales of EVs. 

 https://nouveaumonde.ca/en/press/nouveau-monde-provides-an-update-on-the-progress-of-its-project/