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Negotiates higher graphite prices for 2025
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Order book reflects strong demand to start the year
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Successfully completes Lac des Iles maintenance shutdown
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Lac des Iles mill to restart production on January 13
Let’s take a look at the above statements
The first one refers to higher graphite prices for 2025. That statement says NOTHING. We know from their November 28 2024 NR that they averaged CDN $1644.00 per ton.
So is the negotiated higher price $4.00 higher or $1500.00 higher. Since NGC is technically in bankruptcy it would be nice if Hughes would let investors know what we could expect to see going forward.
The second one “order book” is the order book you refer to backed up with binding contracts or can these orders be canceled?
The third one “maintenance shutdown” two months of maintenance is likely expensive. It would be nice to know how much was spent and a review of what was done. The equipment is very old and I suspect it has reached the point where maintenance costs will sky rocket in coming weeks and months.
The fourth one “mill to restart”. If one uses google earth and views the LDI operation one sees these big black bags filled with unsold processed graphite. What percentage of that inventory is fines? I am suggesting to you Hughes that a large percentage is fines that sell for considerably less dollars per ton then the larger flake sizes.
The reason I bring up the inventory situation is because of the following statement made in your news release of October 21, 2024.
“ In the interim, Northern will seek to mitigate any disruptions by supplying customers from inventories and from third parties.”
This statement indicates to me that you must use third parties to satisfy some of your current industrial customers with some larger flake sizes. Logic tells me that you have enough fines to meet customer demands. The reason I say that in some SEDAR NI43-101 filings it is indicated that approximately 41% of LDI production is fines.
It would also be nice to know as an investor whether there is any graphite bearing ore that can be mined or do they need to begin in the new pit to continue mining?
I think the CEO position should require a permanent presence in North America preferably Quebec. This would save the company money. If the current CEO does not want to relocate then he should resign his positions as a director and CEO.
This companies business plan has been to rely on the US government to finance their company and the new business plan is to rely on Donald Trumps tariffs.
The second plan Donald Trumps tariffs has a better chance of success then the first plan.