Nouveau Monde Graphite (US:NMG)2025-08-14 20:40Financial Performance - For the six-month period ended June 30, 2025, the company reported a net loss of $33.5 million, compared to a net loss of $43.3 million for the same period in 2024, indicating a 22.5% improvement in losses year-over-year [18]. - Operating loss for the six-month period ended June 30, 2025, was $35.2 million, down from $51.8 million in the same period of 2024, showing a 32.2% reduction in operating losses [9]. - The basic and diluted loss per share for the six-month period ended June 30, 2025, was $0.22, compared to $0.48 for the same period in 2024, reflecting a 54.2% decrease in loss per share [9]. - The company reported cash flows used in operating activities of $25.3 million for the six-month period ended June 30, 2025, compared to $23.5 million for the same period in 2024, indicating a 7.7% increase in cash outflows [14]. - Net financial income for the three-month period ended June 30, 2025, was $4,351,000, compared to a net financial loss of $6,647,000 in the same period of 2024 [72]. Assets and Liabilities - Cash and cash equivalents decreased to $73.5 million as of June 30, 2025, down from $106.3 million at the end of 2024, representing a decline of 30.9% [7]. - Total assets decreased to $174.8 million as of June 30, 2025, from $204.1 million at the end of 2024, reflecting a reduction of 14.3% [7]. - The company had an accumulated deficit of $327.3 million as of June 30, 2025, compared to $293.9 million at the end of 2024, indicating an increase in the deficit of 11.4% [18]. - Total liabilities remained relatively stable at $50.5 million as of June 30, 2025, compared to $50.4 million at the end of 2024 [7]. - The company reported a total of CAD 12,644,000 in trade payables and accrued liabilities as of June 30, 2025, compared to CAD 10,929,000 at the end of 2024, indicating a 15.7% increase [37]. Financing and Capital Structure - The company is actively seeking additional financing to support its operations and development activities, as it has not yet generated positive cash flows or earnings [20]. - The company’s ability to continue operations is contingent upon securing additional funding, which may include debt or equity instruments, strategic partnerships, or other capital market alternatives [20]. - 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 [40]. - The company completed a private placement with GM and Panasonic on February 28, 2024, raising aggregate gross proceeds of $67.9 million (US$50 million) by issuing 25,000,000 common shares and warrants [51]. - A private placement with Mitsui and Pallinghurst was completed on May 2, 2024, resulting in the issuance of 18,750,000 common shares and warrants for a total value of US$37.5 million [54]. Investments and Expenditures - The company incurred $9,805,000 in additions to property, plant, and equipment for the six-month period ended June 30, 2025, compared to $5,506,000 in the same period of 2024 [74]. - Battery Material Plant project expenses for the six-month period ended June 30, 2025, totaled $18,276,000, an increase of 9.0% from $16,765,000 in the same period of 2024 [70]. - Mining projects expenses for the three-month period ended June 30, 2025, were $1,644,000, a decrease of 10.8% compared to $1,843,000 for the same period in 2024 [10]. - The acquisition of the Lac Guéret property was completed on January 31, 2024, for a total consideration of $18.6 million, paid with 6,208,210 common shares at $3.00 per share [10]. Shareholder Information - The company has a total of 152,261,189 common shares issued as of June 30, 2025, compared to 60,903,898 shares at the beginning of the year [63]. - The average fair value per warrant is US$0.13, with a total liability component evaluated at $25.8 million (US$19 million) for the warrants issued to GM and Panasonic [53]. - The company maintains various share-based compensation incentives under the Omnibus Equity Incentive Plan, which allows for a maximum of 15% of total issued shares to be allocated for share-based payments [64]. - As of June 30, 2025, the company has 9,538,250 stock options outstanding, with an average exercise price of $4.30 [65]. - The company’s stock options include grants made to key employees that vest upon a positive final investment decision, subject to certain conditions [65]. Other Financial Metrics - The fair value of the convertible debt host was estimated at $16,753,000 (US$12,280) as of June 30, 2025 [78]. - The company reported a foreign exchange loss of $977,000 for the three-month period ended June 30, 2025, compared to a gain of $717,000 in the same period of 2024 [72]. - General and administrative expenses for the three-month period ended June 30, 2025, were $6,271,000, a decrease of 8.3% compared to $6,835,000 for the same period in 2024 [71]. - Key management compensation for the six-month period ended June 30, 2025, included wages and short-term benefits of $890,000, down from $1,120,000 in the same period of 2024 [75].