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Bullboard - Stock Discussion Forum Nemaska Lithium Inc NMKEF

Nemaska Lithium Inc is a Canada based lithium company. It is engaged in exploring and evaluating lithium properties and processing of spodumene into lithium compounds in Quebec, Canada. The company supplies lithium hydroxide and lithium carbonate to the lithium battery industry used in electric vehicles, cell phones, tablets, and other consumer products.

GREY:NMKEF - Post Discussion

Nemaska Lithium Inc > NOU's value propositio is up!
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Post by Nic777 on Jun 27, 2020 10:40am

NOU's value propositio is up!

The provincial bureau in charge of carrying the environmental and social assessment on Nouveau Monde Graphite’s Matawinie mining project released a favorable decision yesterday.  This is a very important milestone and the company believes is only a few months away from the government decree authorizing the construction.  Please see this news release for additional information.  The company says that if authorizations and rights are indeed granted, preparatory work on the mine site shall start in Q4 of 2020.

This is a very good news indeed and it was to be expected given the extensive work that the team at NMG has done while working on completing this key environmental and social assessment.

Graphite is a key battery material enabling the lithium-ion technology.  There is no replacement to graphite and no replacement shall be expected in the long term.  In fact, raw materials specialists and battery experts believe that we shall be expecting an evolution of lithium-ion rather than a breakthrough in technology.  A few weeks ago, I listened to a presentation by Sam Jaffe of Cairn Research.  Sam specializes in battery technology and the markets where they are used.  He does not see anything on the horizon that would replace graphite in the anodes.  What he sees happening though is a trend in increasing silicon doping of graphite anodes.  This appears to be the safest and cheapest way to increase energy density.  He believes that graphite anodes could contain up to 15% silicon on average by 2040.  Today, doped graphite anodes contain less than 5% silicon.

Bottom line, the demand picture for graphite anode material is very bright as the world is transitioning away from fossil fuels.  China cannot be the sole provider of purified spheronized anode material!

Here is a recap of Nouveau Monde Graphite’s value proposition:
  • China is currently supplying 100% of purified spherical graphite for lithium-ion battery anodes.  Clearly, the supply chain needs to transition away from full dependence on a single jurisdiction;  NMG’s business plans is to become the largest graphite operation in the Western world.  553 GWh of battery capacity is being built in North America and Europe;
  • NMG’s is developing its business to become a vertically integrated producer of value-added products.  The company could eventually reach 100,000 tonnes of graphite anode materials per year;
  • The company’s business development is governed by ESG principles.  Zero emissions hydroelectricity will be used throughout the value chain.  This is important as some car OEMs such as Volkswagen have started issuing sustainability scores to their suppliers;
  • Mine tailings will not rely on dams but rather on co-disposal management and progressive land reclamation;
  • Pallinghurst Group of London is a major shareholder.  Traxys trading house has an offtake agreement with NMG.  Both have earmarked $2B for investing in sustainable battery material projects.
Comment by TicTacTo on Jun 27, 2020 10:47am
20 cents in June 2013 ... 20 cents in 2020, a good project do not mean it is good investment for retails.
Comment by TicTacTo on Jun 27, 2020 10:49am
Almost 300 million shares and still need to raise +250 millions, how can you expect share price raising ?
Comment by Takeactionnow on Jun 27, 2020 10:55am
The supply chain issue is big, particularly with respect to critical minerals. In case you missed it, here is a link to testimony given to the U. S. Senate this week (note the growth projections): Critical minerals supply #2
Comment by TicTacTo on Jun 27, 2020 11:01am
An excellent project and like CEO mentality but difficult to come up with clear target for stock price. Eight Capital evaluate target at 70 cents sometimes ago but they were also involved in financing, so reliability is weak. Eight capital value NMX at +C$2/shares ... last one 10 cents and even if not hope end maybe zero.
Comment by phantom666 on Jun 27, 2020 2:23pm
Nice pump on the wrong board Nic. tell me how NOU is a good bet when there are 2 other companies in Quebec that have 4X the % of Cg (17%) that used a cut off of over 6% where NOU used a cut off of just over 2% for their 4.25%Cg resource size?!!
Comment by phantom666 on Jun 27, 2020 4:25pm
Chew on this for awhile Nic! The mineral Reserves and the in-pit Mineral Resources are included in the total Measured and Indicated Mineral Resources of 65.5 Mt grading 17.2% Cg (19.0 Mt of Measured Resources grading 17.9% Cg and 46.5 Mt of Indicated Resources grading 16.9% Cg) that were reported in the Companys press release dated December 5, 2018.
Comment by TicTacTo on Jun 27, 2020 4:31pm
You're right Cg is lower but key point can they produce graphite at economical cost and high value Li-Ion anode with good margin as claimed in business plan ? If yes Cg fine.
Comment by Ciseaux on Jun 27, 2020 4:50pm
I own about 150K shares of NOU. I thought their business plan looked solid. IQ and Pallinghurst also seemed to think the same. For sure, after NMX I don't feel as secured to own a junior miner!! Still keeping because it does not always go to 0.   
Comment by TicTacTo on Jun 27, 2020 5:03pm
Not afraid NOU bankrupt, technical team with strong backround in graphitte not like NMX with ZERO lithium industry veteran on board ... and at the end project cost increase of 260% between 2016 and 2019 (at this level overcost is very polite term). But problem remain the same with already 300 million shares and +C$250-300M for mine and C$200M for anode plant in Becancour needed, does it make ...more  
Comment by Ciseaux on Jun 28, 2020 10:17am
I assumed a X5 dissolution. So maybe 1.5B shares after financing is complete. And with 751M CAD after tax NPV at 8% that would leave about 50 cents per share in 2 or 3 years. Pallinghurst and direction bought shares at 23.5 cents in June last year. https://nouveaumonde.ca/en/press/nouveau-monde-graphite-announces-the-completion-of-its-c22-million-capital-raise-and-will-proceed-to-construction-of ...more  
Comment by TicTacTo on Jun 28, 2020 12:35pm
Maybe better to stay aside and wait situation more clear.  Bet not 100% equity financing (loan) but a well managed project with excellent perspective do not mean it is worth put a penny in it.
Comment by TicTacTo on Jun 28, 2020 3:34pm
50 cents in 2-3 years from 20, not worth the risk. On 3 years horizon safer to play company like Lithium America with larger return.
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