Core Insights - Nouveau Monde Graphite Inc. (NMG) is advancing its Phase-2 Matawinie Mine project, focusing on securing commercial agreements and financing to support natural graphite production for North American, European, and G7-allied markets [3][4][11] Commercial Agreements - NMG has established a binding term sheet with the Government of Canada for a seven-year offtake agreement for 30,000 tonnes per annum (tpa) of graphite concentrate, including a 15,000 tpa take-or-pay commitment [2][7] - The company has revised its commercial agreement with Panasonic Energy to produce 13,000 tpa of active anode material, reserving approximately 25,000 tpa of graphite concentrate for this purpose [6][43] - NMG has signed a binding term sheet with Traxys North America for up to 20,000 tpa of graphite concentrate for the refractory market, subject to board approval [8][42] Project Development and Financing - The project financing process for the Phase-2 Matawinie Mine is progressing well, with due diligence nearing completion and negotiations for long-form term sheets ongoing [5][15] - NMG is actively engaged with lenders and strategic investors to secure financing efforts in view of a final investment decision (FID) [4][15] - The company is also finalizing supply agreements for equipment packages and launching tenders for the construction phase of the project [13][15] Feasibility Study and Economic Viability - An updated feasibility study for the Phase-2 Matawinie Mine indicates a nominal annual processing rate of 2.56 million tonnes, with an average grade of 4.23% graphitic carbon and a pre-tax NPV of US$379 million [17][18] - The study reflects a capital expenditure (CAPEX) of US$421 million and an annual operating expenditure (OPEX) of US$44 million, with a pre-tax internal rate of return (IRR) of 17.3% [17][18] Market Dynamics - The global electric vehicle (EV) market reached a record high of 2.1 million units sold in September 2025, with a year-to-date growth of 26% [25] - Global energy storage installations are projected to rise by 23% year-over-year in 2025, indicating strong demand for battery materials [26] - FOB China prices for natural graphite have slightly decreased due to weak demand, while U.S. duties on Chinese graphite imports are pushing for a North American supply chain [24]

Core Insights - Nouveau Monde Graphite Inc. has strengthened its partnership with Traxys North America LLC by finalizing a binding amended and restated joint marketing and offtake agreement for 20,000 tonnes per annum of graphite concentrate from the Phase-2 Matawinie Mine [1] Group 1 - The agreement is referred to as the "2025 Traxys Binding Offtake and Marketing Agreement" [1] - The agreement focuses on the supply of graphite concentrate, indicating a commitment to the growing demand for graphite in various industries [1]

Management Changes - Tiago Cunha has been appointed as Interim CEO, President, and Director, and he is the largest shareholder of the Company, agreeing to subscribe for C$2.085 million (US$1.5 million) of convertible notes [2] - Darren Prins has joined as Chief Financial Officer and Corporate Secretary, bringing over 20 years of experience in finance and accounting across various industries [3] - Rogerio Barcellos has been appointed General Manager for the Santa Cruz Graphite Project, with a plan to expand production to 10,000 tonnes per year of graphite concentrate [4] - Roger Mortimer has resigned as a Director to pursue other opportunities [5] Operational Update - The Company has faced challenges during the commissioning of the Santa Cruz graphite project, leading to a working capital deficit due to equipment selection issues and significant rainfall [6] - Operational performance has improved, with the first shipment of graphite completed, producing approximately 20 tonnes over eight months, and a better product mix achieved in subsequent shipments [7][10] - The Company has identified potential operating cost savings of approximately 40% through various measures during the ramp-up process [8] Strategic Initiatives - The Company is actively evaluating strategic partnerships to strengthen its cash position and enhance market presence [9] - With proceeds from recent private placements and a bridge loan facility, the Company anticipates sufficient funding to achieve the original design capacity of 5,000 tonnes per year at the Santa Cruz plant during 2026 [10] Project Overview - South Star Battery Metals Corp. is focused on developing battery-metals projects, with the Santa Cruz Graphite Project being the first in a series of projects aimed at production [11] - The BamaStar Project in Alabama is in the development pipeline, with strong economic results indicated by a pre-tax NPV of US$2.4 billion and an IRR of 35% [12]