Nouveau Monde Graphite (US:NMG)2025-11-12 12:10Financial Performance - For the nine-month period ended September 30, 2025, the company reported a net loss of CAD 110.2 million, compared to a loss of CAD 51.4 million for the same period in 2024[19]. - Operating loss for the nine-month period was CAD 48.2 million, down from CAD 70.9 million in the same period of 2024[10]. - The basic and diluted loss per share for the nine-month period was CAD 0.72, compared to CAD 0.52 for the same period in 2024[10]. - Net financial income for the nine-month period ended September 30, 2025, was $61,652,000, a significant increase from a loss of $19,825,000 in 2024[77]. - The total net change in working capital for the nine-month period ended September 30, 2025, was $4,761,000, compared to $1,081,000 in 2024[81]. Cash Flow and Liquidity - Cash and cash equivalents decreased to CAD 61.8 million as of September 30, 2025, down from CAD 106.3 million at the end of 2024[7]. - The company reported cash flows used in operating activities of CAD 31.6 million for the nine-month period ended September 30, 2025[15]. - The company has not yet generated positive cash flows or earnings, indicating a need for additional funding to continue operations[19]. Assets and Liabilities - Total assets decreased to CAD 161.3 million as of September 30, 2025, from CAD 204.1 million at the end of 2024[7]. - Total liabilities increased significantly to CAD 112.4 million as of September 30, 2025, compared to CAD 50.4 million at the end of 2024[7]. - The company had an accumulated deficit of CAD 404.0 million as of September 30, 2025[19]. - Trade payable and accrued liabilities as of September 30, 2025, were CAD 9,250,000, a decrease from CAD 10,929,000 at the end of 2024[41]. - The total derivative warrant liability as of September 30, 2025, was $78,968,000, an increase from $15,589,000 as of December 31, 2024, indicating a significant rise in fair value adjustments[52]. Share Capital and Equity - The company’s share capital increased to CAD 411.5 million as of September 30, 2025, from CAD 411.2 million at the end of 2024[7]. - The total shares issued at the end of the nine-month period ended September 30, 2025, was 152,400,705, up from 152,261,189 at the beginning of the period[67]. - The company has a maximum of 15% of total issued shares allocated for share-based payments under its Omnibus Equity Incentive Plan, which aims to attract and retain talent[68]. - The company’s stock options increased from 7,994,500 at the end of 2024 to 9,023,250 by September 30, 2025, reflecting ongoing employee incentive strategies[69]. - The company issued 139,516 common shares from the exercise of stock options during the nine-month period ended September 30, 2025, with an ending balance of 9,023,250 stock options[69]. Project and Operational Expenses - Mining projects expenses for the nine-month period ended September 30, 2025, totaled $6,012,000, significantly lower than $23,827,000 in the same period of 2024[73]. - Battery Material Plant project expenses for the nine-month period ended September 30, 2025, were $22,224,000, compared to $27,199,000 in 2024[75]. - General and administrative expenses for the nine-month period ended September 30, 2025, were $19,977,000, slightly up from $19,881,000 in the previous year[76]. Debt 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[45]. - As of September 30, 2025, the balance of convertible notes was CAD 17,152,000, reflecting interest accretion of CAD 1,444,000 during the period[42]. - The company has an option to pay interest on convertible notes either in cash or in common shares, subject to TSX approval, which provides flexibility in managing cash flow[50]. - The fair value of the convertible debt host was estimated at $17,254,000 (US$12,394) as of September 30, 2025[85]. - The Company amended IQ's convertible note on October 27, 2025, extending the maturity date by one year and increasing the interest rate by 2%[91]. Corporate Developments - The company incorporated two new subsidiaries, NMG Bécancour Inc. and NMG Matawinie Inc., on June 20, 2025, focusing on active anode material operations and mining of natural flake graphite, respectively[28]. - 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) through the issuance of 25,000,000 common shares and warrants[55]. - The company’s private placement with Mitsui and Pallinghurst on May 2, 2024, raised US$37.5 million through the issuance of 18,750,000 common shares and warrants[58]. - The company recognized a negative amount under "Additions, net of grants" in the Equipment asset category due to grants received, impacting the carrying amount of the related asset[37]. - The company exercised its buyback option to repurchase 1% of the 3% net smelter royalty for a total amount of CAD 1,869,000, allocating CAD 963,000 to "Mine under construction" and CAD 906,000 to "Bécancour Battery Material Plant under construction"[39]. Approval and Reporting - The condensed consolidated interim financial statements for the three and nine-month periods ended September 30, 2025, were approved for publication on November 11, 2025[24]. - The average fair value per warrant as of September 30, 2025, was US$0.68, compared to US$0.13 as of December 31, 2024, showing a substantial increase in valuation[52]. - The fair value per stock option for the nine-month period ended September 30, 2025, was estimated at $1.41, down from $2.04 in 2024[72].