Nouveau Monde Graphite (US:NMG)2025-05-14 20:41Financial Performance - For the three-month period ended March 31, 2025, the company reported a net loss of CAD 12.4 million, a decrease from CAD 32.2 million in the same period of 2024, representing a 61.5% improvement year-over-year [9]. - The basic and diluted loss per share for the three-month period ended March 31, 2025, was CAD 0.08, compared to CAD 0.43 for the same period in 2024, reflecting a 81.4% decrease [9]. - The company incurred mining project expenses of CAD 2.2 million for the three-month period ended March 31, 2025, significantly lower than CAD 20.2 million in the same period of 2024, a reduction of 89.3% [9]. - The company reported mining project expenses of $2.15 million for the three-month period ended March 31, 2025, compared to $20.22 million for the same period in 2024 [68]. - General and administrative expenses increased to $6,856,000 for the three-month period ended March 31, 2025, compared to $6,183,000 for the same period in 2024, reflecting a rise of 10.8% [12]. - Net financial costs for the three-month period ended March 31, 2025, were $(6,290,000), significantly higher than $(2,082,000) in the same period of 2024, indicating an increase of 202.5% [13]. Assets and Liabilities - Total current assets decreased to CAD 95.8 million as of March 31, 2025, down from CAD 114.0 million as of December 31, 2024, reflecting a 16.0% decline [7]. - The company's total liabilities decreased to CAD 45.2 million as of March 31, 2025, compared to CAD 50.4 million as of December 31, 2024, indicating a 10.0% reduction [7]. - Cash and cash equivalents at the end of the period were CAD 88.9 million, slightly up from CAD 88.0 million at the end of March 2024 [13]. - The accumulated deficit increased to CAD 306.3 million as of March 31, 2025, from CAD 293.9 million as of December 31, 2024 [11]. - Trade payables and accrued liabilities increased to CAD 11,578,000 as of March 31, 2025, from CAD 10,929,000 as of December 31, 2024, marking a rise of about 5.9% [37]. Investments and Financing - The Company completed a private placement of unsecured convertible notes for gross proceeds of CAD 67.2 million (US$50 million) on November 8, 2022, with a term of 36 months and a quarterly coupon interest payment [39]. - The Company issued 12,500,000 common shares and 12,500,000 warrants to Mitsui and 6,250,000 common shares and 6,250,000 warrants to Pallinghurst in exchange for convertible notes totaling US$37.5 million [42]. - The total balance of convertible notes as of March 31, 2025, was CAD 16,690,000, reflecting adjustments for interest accretion and fair value adjustments [38]. - The company completed a private placement with GM and Panasonic, raising gross proceeds of $67.9 million (US$50 million) by issuing 25,000,000 common shares and warrants [50]. - The fair value of the convertible debt host was estimated at $17,700,000 (US$12,312) as of March 31, 2025, compared to $17,908,000 (US$12,446) as of December 31, 2024 [80]. Project Development - The company is developing a natural graphite-based anode material aimed at supplying the lithium-ion battery industry, which is a key focus for future growth [15]. - The company incurred battery material plant project expenses of $9.63 million for the three-month period ended March 31, 2025, compared to $7.81 million for the same period in 2024 [69]. - The company’s exploration and evaluation expenses for the Uatnan Mining Project were recorded as $18.6 million, expensed under the category "Uatnan Mining Project" [68]. Shareholder and Management Information - The company’s total shares issued remained at 152,261,189 as of March 31, 2025, unchanged from the previous year [62]. - The company’s share options decreased from 7,994,500 at the end of 2024 to 7,786,500 by March 31, 2025, with an average exercise price of $4.80 [65]. - Key management compensation decreased to $2,670,000 for the three-month period ended March 31, 2025, from $1,210,000 in the same period of 2024, reflecting a significant increase in share-based payments [79]. - The company’s share-based compensation increased to $530,000 for the three-month period ended March 31, 2025, from $138,000 in the same period of 2024 [68]. Cash Flow and Investments - Cash flow used in investing activities for the purchase of property, plant, and equipment was $3,191,000 for the three-month period ended March 31, 2025, compared to $2,223,000 in 2024, representing a 43.5% increase [78]. - The Company reported a total cost of property, plant, and equipment of CAD 104,049,000 as of March 31, 2025, reflecting an increase from CAD 97,884,000 as of December 31, 2024, representing a growth of approximately 6.5% [32]. - The net book value of property, plant, and equipment as of March 31, 2025, was CAD 81,751,000, up from CAD 77,666,000 as of December 31, 2024, indicating an increase of about 5.4% [32]. - The Company capitalized borrowing costs of CAD 561,000 for the three-month period ended March 31, 2025, compared to CAD 444,000 for the same period in 2024, reflecting a year-over-year increase of approximately 26.4% [33]. Other Financial Metrics - The interest coupon for the three-month period ended March 31, 2025, totaled CAD 416,000 (US$290), a decrease from CAD 807,000 (US$1,088) for the same period in 2024, representing a decline of approximately 48.5% [43]. - The company recognized grants of $9,000 for the three-month period ended March 31, 2025, compared to $1,000 in the same period of 2024, indicating a substantial increase [78]. - The company reported a foreign exchange gain of $(24,000) for the three-month period ended March 31, 2025, compared to a gain of $1,403,000 in the same period of 2024, indicating a significant decline [14]. - The company is currently evaluating the impact of amendments to IFRS 9 and IFRS 7 on its consolidated financial statements, effective for annual reporting beginning on or after January 1, 2026 [26].