March 8, 2022

Only North American Graphite Producer Supplying EV & Battery Markets | Northern Graphite $NGC $NGPHF

Midas Letter
Midas Letter
Only North American Graphite Producer Supplying EV & Battery Markets | Northern Graphite $NGC $NGPHF
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Northern Graphite Corp (CVE:NGCOTCMKTS:NGPHF) is a graphite exploration and producing company that will supply the forecasted growth in electric vehicle (EV) and battery demand. In December, the company announced the acquisition of two graphite-producing projects from Imerys SA (EPA:NK, OTCMKTS:IMYSF) – one of the worlds leading mineral production companies. The acquisition turns Northern Graphite into the only graphite producing company in North America and the 3rd largest non-Chinese graphite producer in the world.

“In December we announced a truly transformational acqusiiton. We are buying the natural graphite division of Imerys SA. Which is a €4-5 Billion public company based in Paris. That will not only make us a producer when the deal closes, which is expected to be within 2 weeks. By the end of this year we should be the third largest non-Chinese graphite producer in the world.” – Northern Graphite CEO Greg Bowes

On top of those existing graphite-producing projects, Northern Graphite has two additional large development projects in its pipeline.

Its Bissett Creek advanced stage project is estimated to be the highest margin graphite deposit globally due to its location, simple metallurgy and high-quality concentrates.

Its acquired Namibia project also has a large hard rock resource underneath it that could support more than 100,000 tonnes per year.

Both of these additional projects will greatly increase the graphite production of the company.

With the growth in EV and battery markets, the world will need big mines to supply the demand. Northern Graphite will have three within politically stable jurisdictions and close to infrastructure. The Russian/Ukrainian crisis highlights how critical local and secure supply chains are. Northern Graphite’s projects all fit within that.

Northern Graphite has been “Waiting for the promise of EVs and batteries to stimulate demand and create higher prices. We’ve seen that in spades in lithium, and I think graphite is poised to be next. So, it’s a good time to be buying graphite assets.”- Northern Graphite CEO Greg Bowes

Transcript

00:00 – Northern Graphite $NGC $NGPHF CEO Greg Bowes
00:47 – Graphite producer or exploration company?
01:42 – Imerys acquisition projects
02:35 – Acquisition cost
03:24 – Explorer to producer transition
04:06 – Major purchaser of graphite?
04:26 – Value of graphite each year
06:33 – Cost of production
06:58 – Company & graphite price history

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