Nouveau Monde Graphite (US:NMG)2024-08-14 20:43Financial Performance - Operating loss for the three-month period ended June 30, 2024, was CAD 17,629 thousand, compared to CAD 13,642 thousand for the same period in 2023, reflecting a 29.3% increase [5]. - Net loss for the six-month period ended June 30, 2024, was CAD 43,320 thousand, compared to CAD 23,882 thousand for the same period in 2023, indicating an increase of 81.5% [9]. - The company reported a basic loss per share of CAD 0.48 for the six-month period ended June 30, 2024, compared to CAD 0.41 for the same period in 2023 [5]. - The company reported a loss attributable to ordinary equity holders of $11,082 thousand for the three-month period ended June 30, 2024, compared to a loss of $1,264 thousand for the same period in 2023, representing an increase in loss of approximately 775% [38]. - The basic loss per share for the six-month period ended June 30, 2024, was $0.48, an increase from $0.41 for the same period in 2023, indicating a 17% increase in loss per share [38]. Assets and Liabilities - Total current assets increased to CAD 80,256 thousand as of June 30, 2024, up from CAD 42,926 thousand at December 31, 2023, representing an increase of 87.2% [4]. - Total liabilities decreased to CAD 46,713 thousand as of June 30, 2024, down from CAD 69,509 thousand at December 31, 2023, a reduction of 32.7% [4]. - Cash and cash equivalents at the end of the period reached CAD 73,876 thousand, up from CAD 36,332 thousand at the beginning of the period, marking a 103.5% increase [9]. - Total equity increased to CAD 114,864 thousand as of June 30, 2024, up from CAD 54,430 thousand at January 1, 2024, representing a growth of 110.9% [7]. Share Capital and Financing - Share capital increased to CAD 343,862 thousand as of June 30, 2024, compared to CAD 238,823 thousand at January 1, 2024, reflecting a growth of 43.9% [7]. - The company issued 43,750,000 shares from a private placement, raising CAD 82,388 thousand during the six-month period ended June 30, 2024 [7]. - The company completed a private placement for aggregate gross proceeds of CAD 67.9 million (USD 50 million) with General Motors and Panasonic on February 28, 2024, to address liquidity concerns [10]. - The company completed a private placement of unsecured convertible notes on November 8, 2022, for gross proceeds of $67.2 million (US$50 million) with a term of 36 months and a quarterly coupon interest payment of the greater of the 3-month CME Term SOFR plus 5% and 7% [27]. - The company has a repurchase option for the convertible notes, which can be exercised at the earlier of December 31, 2023, or the date of a final investment decision [27]. Expenses and Costs - Exploration and evaluation expenses for the six-month period ended June 30, 2024, totaled CAD 22,066 thousand, significantly higher than CAD 4,387 thousand for the same period in 2023 [5]. - The company’s share-based compensation for the six-month period ended June 30, 2024, was $2,649 thousand, compared to $1,039 thousand for the same period in 2023, indicating a 155% increase [45]. - The total general and administrative expenses for the six-month period ended June 30, 2024, were $13,018 thousand, compared to $12,646 thousand for the same period in 2023, reflecting a slight increase of 3% [45]. - The company incurred exploration and evaluation expenses of $2,073 thousand for the six-month period ended June 30, 2024, compared to $1,591 thousand for the same period in 2023, reflecting a 30% increase [43]. - The battery material plant project expenses for the six-month period ended June 30, 2024, totaled $16,765 thousand, up from $9,898 thousand for the same period in 2023, representing a 69% increase [44]. Cash Flow and Investments - For the six-month period ended June 30, 2024, the company reported a net loss after tax of CAD 43.3 million and cash outflows from operating activities of CAD 23.5 million [10]. - The total net change in working capital for the six-month period ended June 30, 2024, was $(488), a decrease from $1,470 in the same period of 2023, indicating a significant decline in working capital management [47]. - The company reported a net cash flow used in investing activities of $3,971 for the purchase of property, plant, and equipment for the six-month period ended June 30, 2024, down from $6,642 in the same period of 2023, a decrease of 40.2% [48]. - The company had issued $4,073 in purchase orders for the acquisition of property, plant, and equipment as of June 30, 2024, indicating ongoing investment in infrastructure [56]. Derivative and Fair Value - The fair value of the derivative warrant liability is determined using the Black-Scholes pricing model, which requires significant assumptions based on market conditions [23]. - As of June 30, 2024, the fair value of the convertible debt host was estimated at $17,313 (US$12,650), down from $66,227 (US$50,073) as of December 31, 2023, indicating a significant decrease of 73.9% [51]. - The average fair value per warrant as of June 30, 2024, was US$0.27, with a total of 18,750,000 Warrants issued in the private placement [36]. Other Financial Metrics - The company’s non-current investments at fair value through profit or loss (FVTPL) were valued at $525 as of June 30, 2024, down from $1,075 as of December 31, 2023, indicating a decrease of 51.2% [54]. - The company reported a foreign exchange loss of $2,120 thousand for the six-month period ended June 30, 2024, compared to a gain of $(1,079) thousand for the same period in 2023 [46]. - The net financial costs for the six-month period ended June 30, 2024, were $(8,729) thousand, compared to $(3,249) thousand for the same period in 2023, indicating a significant increase in net financial costs [46].