Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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 May 24, 2012 1:21pm
422 Views
Post# 19942499

Industrial Alliance Initiates Coverage On NGC

Industrial Alliance Initiates Coverage On NGC

 

INITIATING COVERAGE

RATING: SPECULATIVE BUY 12 MONTH TARGET: C$3.00

A Step Away From Building Canada’s Next Graphite Mine  

? Ideal location. Deposit located only 250 km from Ottawa and less than 20km from a main highway with natural gas lines and power lines easily accessible.

? Simple mining. Shallow, flat lying and homogeneous deposit easily scalable through lateral expansion at very low strip ratios.

? Quick development. Construction expected to begin in H2/12 and take one year to complete.

? Large flake graphite. Extremely favorable distribution rarely attainable at high grade mines (80% in +32 / +50 / +80 mesh size).

? High recovery. Above 95% recovered through simple floatation technique.

? High purity graphite. 75% of production results in graphite with carbon levels above 94%.

? Successful spherical graphite production. Company has been able to attain up to 70% yield. Spherical graphite is a strong growth market required for both current and future markets.

? Our base case DCF model considers a mining operation of 2,500 tpd with 30% of production upgraded to spherical flake graphite. We assume a 45 year life of mine with CAPEX of $90M and additional $15M for the spherical graphite production plant. Our life of mine concentrate cash cost is estimated at 1,073 $/t and spherical graphite cash cost is estimated at 2,650 $/t. We use a blended concentrate price of 2,318 $/t and 6,000 $/t of spherical graphite.

? The base case DCF model results in an after-tax NPV of $141.7M and 21.5% IRR with a payback period of 3 years.

INVESTMENT THESIS

Northern Graphite is a mineral exploration company developing the Bissett Creek graphite deposit that has the potential to become one of the largest graphite mines in the world. With metallurgical testing completed and a bankable feasibility study expected in Q2/12, the company is well position to begin construction in 2012. This solidifies the company’s first-mover advantage as it becomes a major global supplier of high quality large flake graphite. We initiate coverage of Northern Graphite with a Speculative Buy recommendation and a 12 month target of C$3.00 target price. The price is based on a 1.0x multiple of a 2.98 NAV (rounded up). Our target is derived solely from the IAS Base model NPV with no value attributed to potential intellectual property from graphene or spherical graphite research.

 

Bullboard Posts