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Northern Graphite Corp V.NGC

Alternate Symbol(s):  NGPHF

Northern Graphite Corporation is a Canada-based flake graphite producing company. The Company is focused on producing natural graphite and upgrading it into high-value products critical to the green economy, including anode material for lithium-ion batteries/electric vehicles (EVs), fuel cells and graphene, as well as advanced industrial technologies. Its mining operations include Lac des Iles, Okanjande and Bissett Creek. Its products include Flake Graphite Products and Porocarb Products. The Lac des Iles (LDI) mine is the only flake graphite producer in North America. The LDI mine is located approximately two kilometers south of Lac-des-Iles, Quebec, 110 kilometers (km) northeast of Ottawa and 180 km northwest of Montreal. The Okanjande mining is located in Namibia, one of Africa's finest mining jurisdictions. It holds a 100% interest in the Bissett Creek Project, which is located around 15 km from the Trans-Canada Highway between the towns of Deep River and Mattawa, Ontario.


TSXV:NGC - Post by User

Bullboard Posts
Post by scissors14on Jan 16, 2012 9:46pm
247 Views
Post# 19410106

Mackie Analyst Update - Jan. 12,2012

Mackie Analyst Update - Jan. 12,2012

Positive Pilot Plant Results Announced

EVENT – Pilot Plant Test Results Confirm Metallurgy

Northern Graphite press released its pilot plant test results after the close.

IMPACT – Positive Metallurgical Results Advance Bissett Creek

The announcement is positive as it validates that 50% of the flake graphite produced

from Bissett Creek will be the jumbo size (+48 mesh), and of very high purity (98%).

The 90-94% recovery rate result provides further indication that our assumption will

be achieved for a recovery rate of 94-95% at the full scale plant. It’s also encouraging

that the pilot plant results are in line with preliminary metallurgical test results that

the Company released on September 23.

This large flake content will allow the project to receive premium pricing, likely

towards the upper end of the $2,500-$3,000 per tonne range that standard premium

product garners in the market.

We are not surprised or concerned that the timeline for completion of the feasibility

study has been pushed back to the end of Q1/2012 from the end of January, 2012.

Long lead times at metallurgical consultant facilities is a theme that we have been

continually hearing from other companies that we cover, so this is largely beyond

NGC’s control.

The Mine Closure Plan continues to be guided towards completion in Q1/2012 so

the Company will be in a position to initiate construction subject to positive results

from the FS and availability of financing.

ACTION – Price Weakness Could Present a Buying Opportunity

Bissett Creek is one of the most highly prized graphite development projects in the

world due to its unique metallurgy. The large flake content will allow it to realize

premium pricing. With a cash cost of $1,000 per tonne, and the long-term average

graphite price of $2,500 per tonne that we have used in our model, NGC continues to

provide evidence that it is on track to build one of the most profitable new graphite

mines in the world. Because of this, NGC should be able to sign an off-take

agreement in the near future, and emerge as a leading supplier of graphite into the

battery manufacturing industry. In addition, a number of catalysts are expected in

the near-term. The timeline for bankable feasibility study completion is Q1/12. The

Company intends to be in a position to start construction by mid-2012, and begin

commercial operations towards the middle part of 2013.

We maintain our SPEC BUY rating and $2.10/sh target price.

Bullboard Posts