RE:NGC MORNING BRIEFyouknowwhat,
You stated, "It is my belief that if the price of graphite does not go up all North American graphite mines will FAIL"
Northern Graphite Corporation has already failed, so there is that.
Northern Graphite Corporation is considered the laughingstock by those operating on behalf of an Australia based graphite miner and truly comprehensively intergrated SPCG anode component manufacturers, e.g. Syrah Resources Ltd.
You also stated "I went over first quarter results for NOU this weekend thinking I may take a position. I have decided against taking a position until there is more clarity in the direction of the price of graphite."
Yes I know you appreciate Nouveau Monde Graphite much more than you do Northern Graphite Corporation; and so too do the overwhelming multitudes of other real investors, who can always pick out the winning Canadian based and truly North American Champion, Nouveau Monde Graphite.
You are concerned about NOU's capital burn rate whilst the company already has $95 Million on hand and has Panasonic, Mitsui, GM as jointly equity controlling partners?
NOU is going to have to gain access to $1.4 Billion worth of capital going forward. Nouveau Monde Graphite representatives previously stated they would do so by way of 70% debentures centric issuance to 30% equity issuance. That 70% debt isuance will be backstopped by scheduled guaranteed inflows of Canadian Federal Government and Quebec provincial government provisioned capital grants, loans/credit facilities and by the participation of the U.S. Government in the provisioning of the same.
By the way, the coming 30% portion of common equity issuance centric capital raises, something which you would clearly be preoccupied with, would be undertaken at immensely higher NOU.V share price points.
That has always been part in parcel of the plan.
Understand that Northern graphite Corporation is considered part of the old world of graphite mining. NGC doesn't mine much graphite; this because of what was previously undeclared for NGC equities investors, i.e. the projected 2024 depletion of historcial graphite reserve specific concerns.
Nouveau Monde Graphite is representative of the New World Graphite mining champion; and Panasonic, Mitsui and GM know this well.
Perhaps to round things off quite nicely, I expect a Japanese and/or Korean automaker would be announcing it's participation in the capital financing of Nouveau Monde Graphite, in exchange of course for a guaranteed amount of graphite material offtake and/or SPCG anode component material production offtake.
NGC = "A FIRE SALE"
An up to $100 Million and likely "At the Market" and nearer to 50% discounted to book value per share priced equity offering is incoming.
Now that's an NGC = "FIRE SALE" eh.