Nouveau Monde Graphite (US:NMG)2024-11-14 21:33Financial Performance - For the nine-month period ended September 30, 2024, the company reported exploration and evaluation expenses of CAD 23.8 million, a significant increase from CAD 5.7 million for the same period in 2023[23]. - The company reported a net loss of $51,382 million for the nine-month period ended September 30, 2024, compared to a net loss of $39,406 million for the same period in 2023[80]. - For the three-month period ended September 30, 2024, the company reported a net loss of $8.062 million, compared to a net loss of $15.526 million for the same period in 2023, representing a 48.0% improvement[45]. - The total operating loss for the nine-month period ended September 30, 2024, was $70.907 million, an increase from $39.978 million in the same period of 2023, reflecting a 77.5% rise[45]. - The company reported cash outflows from operating activities of $35.2 million during the nine-month period ended September 30, 2024[64]. - The accumulated deficit as of September 30, 2024, reached $272 million, indicating ongoing financial challenges[64]. Share Capital and Financing Activities - The company issued 43,750,000 shares from a private placement, contributing to a total of 112,578,651 shares outstanding as of September 30, 2024, compared to 60,903,898 shares at the end of 2023[20]. - The company completed a public offering of 4,850,000 common shares at a price of US$4.55 per share, generating gross proceeds of CAD 29.6 million (US$22 million) on April 17, 2023[41]. - The company raised $67,870 million from a private placement during the financing activities, compared to $29,565 million in the previous period[80]. - The company completed a private placement with GM and Panasonic, raising aggregate gross proceeds of $67.9 million (US$50 million) by issuing 25,000,000 Common Shares and Warrants[95]. - The company issued 12,500,000 Common Shares and 12,500,000 Warrants to Mitsui and Pallinghurst for a total value of US$37.5 million as part of a private placement[50]. Assets and Liabilities - Total assets increased to $147,939 million as of September 30, 2024, up from $123,939 million at December 31, 2023, representing a growth of 19.4%[74]. - Total current assets rose to $61,471 million, a significant increase of 43.1% from $42,926 million at the end of 2023[74]. - Total liabilities decreased to $38,466 million, down 44.7% from $69,509 million at December 31, 2023[74]. - The company’s total equity as of September 30, 2024, was $109.473 million, reflecting the impact of recent financing activities[60]. - The total equity of the company reached $109,473 million, a substantial increase from $54,430 million at December 31, 2023, indicating a growth of 101%[74]. Expenses - The company incurred $10.434 million in expenses related to the Battery Material Plant project for the three-month period ended September 30, 2024, compared to $6.790 million in 2023, marking a 53.5% increase[45]. - General and administrative expenses for the three-month period ended September 30, 2024, were $6.865 million, up from $4.927 million in 2023, which is a 39.4% increase[45]. - The company incurred depreciation and amortization expenses of $7,023 million for the nine-month period ended September 30, 2024, compared to $5,508 million for the same period in 2023[80]. - For the nine-month period ended September 30, 2024, the company reported engineering expenses of $11.95 million, significantly up from $4.80 million in the same period of 2023, reflecting a 149% increase[102]. - The company incurred Battery Material Plant project expenses of $27.20 million for the nine-month period ended September 30, 2024, compared to $16.69 million in the same period of 2023, representing a 63% increase[102]. Financial Costs and Liabilities - The company reported a net financial cost of CAD 1.8 million for the nine-month period ended September 30, 2024, compared to CAD 1.5 million for the same period in 2023[25]. - The net financial costs for the nine-month period ended September 30, 2024, were $(19,825,000), compared to $(872,000) for the same period in 2023, indicating a significant increase in financial costs[130]. - The company incurred interest fees of $1,978,000, compared to $5,054,000 for the same period in 2023, showing a decrease in interest expenses[132]. - The company’s total liabilities were reclassified from non-current to current liabilities due to amendments in IAS 1, affecting the classification of convertible notes[111]. Share Options and Warrants - The average fair value per warrant was estimated at US$0.10 as of September 30, 2024, with a total of 25,000,000 warrants outstanding[17]. - The company reported a weighted average fair value of share options granted at $2.06, with an expected volatility of 80.76%[99]. - The company has 3,199,750 share options that can be exercised at an average price of $7.26, with a total cap on options granted set at 10% of total outstanding shares[99]. - The fair value of the warrants was evaluated at $25.8 million (US$19 million) using the Black-Scholes option pricing model, with a residual balance of $42.1 million (US$31 million) allocated to the equity component[95]. Foreign Exchange and Other Adjustments - The company recognized a foreign exchange gain of $1,721,000 for the nine-month period ended September 30, 2024, compared to a loss of $(137,000) for the same period in 2023[130]. - The company reported a foreign exchange loss of $(387,000) for the three-month period ended September 30, 2024, compared to a gain of $942,000 for the same period in 2023[130]. - The fair value adjustment for the derivative warrant liability was $(10,550,000) as of June 30, 2024, reflecting a decrease in the liability[121]. - The balance for the derivative warrant liability decreased to $3,395,000 as of September 30, 2024, down from $19,738,000 as of March 31, 2024[121]. Project Developments - The company completed the acquisition of the Lac Guéret property for a total consideration of $18.6 million, paid with 6,208,210 common shares at $3.00 per share[128]. - The company plans to make a subsequent payment of $5,000,000 to Mason Resources Inc. upon the start of commercial production of the Uatnan Mining Project[128]. - The company exercised its buyback option to repurchase 1% of the 3% net smelter royalty for a total amount of $1.87 million, allocating $0.96 million to the "Mine under construction" asset category[117].