Latest news with #HuguesJacquemin
National Observer
18-07-2025
- Business
- National Observer
At North America's only graphite mine, big battery dreams face a global crush
As the home of North America's only operating graphite mine and a score of projects queued for development, Canada should be in pole position in the race to capitalize on the vast deposits of a mineral vital to the energy transition. Yet the 35-year-old open pit mine in Lac des Îles, Que., is struggling. Mine owner Northern Graphite has historically sold its product—a dark-grey, naturally occurring form of carbon—to a range of US industrial customers that use it in everything from steelmaking and manufacturing lubricants to pencils and racing bike frames. But it has yet to ship a single ounce of graphite to clean economy customers: the makers of lithium-ion batteries for electric vehicles and grid-linked energy storage. In May, the company said it needed to immediately raise $10 million to expand its operation or face the possibility of shutting down by year's end. 'We have over $300 million in assets, but our market cap is $11 million,' Northern Graphite CEO Hugues Jacquemin told Canada's National Observer last week, discussing the value of the company's shares on the stock market. 'This tells you how precarious a situation we are in in the current market,' he said, speaking during a visit to the mine, located 150 kilometres northwest of Montreal, by a European delegation working on hatching a new strategic industrial partnerships with Canada. 'China has been driving down prices in a very explicit strategy to deter Western investment in the critical mineral supply chains — and it has been working,' says Bentley Allan, lead author on a recent Transition Accelerator critical minerals report. Graphite is high on Ottawa's priority list of 34 critical minerals — a group of metal, minerals and rare earth elements key to energy transition and defence technologies — as it seeks to reindustrialize Canada's mining sector while pivoting away from an overreliance on trade with the US in the wake of the Trump administration's tariffs and annexation threats. Prospects could hardly appear more bullish. The global market for natural graphite, such as is hauled out of Lac des Îles, and synthetic versions derived from polluting coking coal, stood at US$30 billion ($41 billion) last year, according to Precedence Research. That figure is forecast to more than double to US$65 billion by 2034. Macquarie, an investment advisory group, in a recent market outlook calculated that six million tonnes a year of graphite alone would be needed globally for EV and electricity grid batteries by the end of this decade. For perspective, Northern Graphite's mine produces 10-15,000 tonnes of graphite ore a year and is ramping up to 25,000 tonnes. 'We need to scale this mine to be much bigger than it is and start building new mines,' Jacquemin said. 'We need to develop the industrial supply chain that will take these raw materials and turn them into a finished product and then to market.' But the company — and wider Canadian graphite mining sector — faces a formidable challenge: China. The Asian superpower monopolizes the global market for so-called 'black lead,' producing and processing nearly 80 per cent of total supply. This gives Beijing the ability to control prices at will and with it, affords it huge geopolitical influence on countries that are in desperate need of the material — including the US, which yesterday levied anti-dumping duties of 93.5% on imports of Chinese graphite. Chinese market manipulation and slowing growth in sales for EVs in North America made 2024 'a year to forget', said GraphiteHub, a market research site, noting that global trade tensions and international efforts to break China's chokehold on graphite — such as the high-level critical mineral 'action plan' agreed at the recent G7 summit — would be narratives to watch. 'Broader geopolitical context' Commercializing Canada's graphite resource — along with that of other critical minerals such as lithium, cobalt, nickel and rare earth metals central to the emerging clean economy — is an extraordinary challenge at a time of uncertainty over international trade, politics and financing, sector observers say. 'The broader context for graphite, like so many critical minerals, is now geopolitical,' said Bentley Allan, lead author on a new report on critical minerals from the Transition Accelerator, a Canadian think tank. 'China has been driving down prices in a very explicit strategy to deter Western investment in the critical mineral supply chains — and it has been working,' he told Canada's National Observer. After hitting highs of $1,000-plus a tonne in early 2023, graphite's price chart has since looked like a worrying EKG monitor, dropping to lows close to $400/tonne at the end of 2024. 'We have been talking about critical minerals for years and there has been a loss of investor confidence because it hasn't translated into an economically viable price,' Jacquenin said. Allan believes Ottawa could foil Beijing's tactics by employing a pricing mechanism like a so-called Contract for Difference, which has a 'floor' and 'ceiling' for critical minerals mined in Canada. This way, he said, the government could provide price certainty for investors, covering the difference if market prices fall below the band and sharing any profit above it. Canada's been talking about critical minerals for years and there has been a loss of investor confidence because it hasn't translated into an economically viable price. 'Otherwise, graphite is not going to move forward in Canada,' said Allan, an associate professor at Johns Hopkins University's Sustainable Energy Institute in the US. A pricing policy is currently not part of Canada's critical minerals strategy launched in 2022 with $3.8 billion in federal support for exploration, processing, manufacturing, and recycling of these key metals and minerals, and another $1.5 billion for mine-related infrastructure aimed at giving projects an early boost. Only a handful of critical mineral projects have progressed meaningfully since, with early-stage mine developments in British Columbia, Manitoba, Ontario and Quebec. 'The government's strategy aims to build a resilient, sustainable sector that delivers results across the country and furnishes Canada's economy and national security,' Marie Martin, a spokesperson for Natural Resources Canada, told Canada's National Observer. She said miners can use 'a range of tools including tax incentives, funding programs and other financing mechanisms' to get projects into production. But the economics of a mine hinge heavily on 'downstream' customers — a battery or EV maker, in the case of graphite — to secure the supply they need through offtake agreements with the mine operator, said Chris Williams, an analyst with Adamas Intelligence, a market intelligence company. Downstream buyers in North America and Europe are 'not committing in sufficient numbers' to support new graphite projects, he said, adding that the Canadian government will most likely have to bridge the funding gap to develop a critical mineral ecosystem — from mining through processing to recycling — here that can help the West curb its dependency on Chinese graphite. 'China's strategy of supporting loss-leading mining operations creates a competitive barrier around its more valuable midstream supply chain, a model that the West would benefit from emulating,' Williams said. Northern Graphite's Lac des Îles graphite mine may be the only one producing product today, but another 10 projects are in early development in Quebec stretching along a mineral-rich southwest-to-northeast axis starting near Notre Dame de Pontmain, 140 kilometres north of Ottawa. Capturing the graphite 'corridor' Moving a mine from discovery to production can take on average 17.9 years in Canada, compared to 15.7 years globally, 14.5 years in Australia and 13 years in the US, S&P Global Market Intelligence, a research firm, said in 2023. 'If permitting was streamlined to be less red tape heavy, we could get moving very fast,' Jacquemin said. The industry has long laid blame for slow-rolling regulatory processes for the time it takes to open a new mine, but market factors and financing can impact a project as well. Prime Minister Mark Carney's Liberal government has pushed through legislation empowering his cabinet to override regulations, guidelines and laws to speed up energy, mining and infrastructure projects. A new Major Projects Office is being set up with the aim of fast-tracking 'national interest projects' to two years from five years. But mining executives say it's not clear how the new federal office will coordinate with provincial regulators and First Nations. The challenges, however, don't end once the ore is out of the ground. Canada's lack of critical mineral processing plants (known as the 'midstream') remains a significant obstacle to the country's export ambitions. Northern Graphite aims to lead the charge into this key industrial link of the supply chain. The miner recently partnered with BMI, a Canadian investment group, that last December bought a 2,800-acre former pulp and paper complex in Baie-Comeau, Quebec to turn it into a 'multimodal' industrial hub — including a graphite processing plant. The huge $2 billion project, called Norderra, would be built-out in four stages, eventually powered by up to 400 megawatts of hydroelectricity, with first graphite shipments from the site's deep water port as early as 'late 2027 or early 2028.' Financing for the lead-off phase has yet to be finalized. Norderra, Jacquemin said, could one day anchor a graphite mining and processing corridor with Quebec's deposits developed into mines producing 500,000 tonnes of graphite concentrate annually, for export to global markets via the Great Lakes-Atlantic Seaway. 'We have to reindustrialize for different types of materials,' Jacquemin said. 'Once we used forestry products to produce paper, now we will be using graphite to produce batteries.' Northern Graphite's five-year plan for the Lac des Îles mine — assuming analysts' forecasts are right and graphite gets a boost from demand for energy transition technologies — is still waiting on the $10 million expansion that would gear up production to 213,000 tonnes of graphite ore a year. 'The government, financial institutions, and industry need to get moving together to seize this opportunity now,' he said. 'Canada needs to put its stamp on this, to say 'We are a leader in critical minerals, and to back that up with high-quality Canadian products. It is time to show we are serious.'
Yahoo
30-05-2025
- Business
- Yahoo
Northern Graphite Announces First Quarter 2025 Results
Record-High Average Sales Prices, Volumes Impacted by Maintenance Shutdown France/Namibia BAM Project Wins "Strategic" Status Under EU Critical Raw Material Act Mill Maintenance Completed at Lac des Iles Mine Ottawa, Ontario--(Newsfile Corp. - May 30, 2025) - Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU:0NG) (the "Company" or "Northern") is pleased to provide an operating summary and financial highlights for the three month period ending March 31, 2025. The Company's Financial Statements and Management's Discussion and Analysis for the period have been filed on SEDAR+ and posted to the Company website. "In a challenging market environment, Northern Graphite is pushing forward on its growth catalysts. Our Battery Materials Division marked its one-year anniversary by winning 'Strategic Project' status under the EU's Critical Raw Materials Act for a proposal to build a BAM facility in France. This recognition reinforces our broader strategy to build a fully integrated, mine-to-market company supplying processed natural graphite to the lithium-ion battery sector," said Chief Executive Officer Hugues Jacquemin. "At our Lac des Iles ("LDI") mine, we are continuing strict cost controls to preserve cash and working to boost output and satisfy more customer demand than we can currently supply. While commanding record average sales prices for our graphite, cutting costs and increasing income from operations, we completed a major maintenance shutdown in Q1. At the same time, we have yet to secure financing to extend the LDI pit and add about eight years of life to the mine before it runs out of ore by the end of this year. As global markets continue to evolve, we remain flexible, focused, and ready to pivot where necessary to drive our vision forward." To view an enhanced version of this graphic, please visit: Operational Highlights: Driving Battery Strategy The Company experienced strong demand through the first quarter of the year, even amid geopolitical uncertainty and after negotiating higher pricing with customers for 2025; Production for the quarter was hampered by a mill maintenance shutdown completed in mid-January and by a lack of ore availability, however it began to improve in the second quarter; A year after its launch, the NGC Battery Materials division ("NGCBM") achieved some important milestones: On March 31, 2025, the Company announced that its proposal to upgrade graphite from the Okanjande project in Namibia into Battery Anode Material ("BAM") in France was selected as one of 47 Strategic Projects under the European Union's Critical Raw Materials Act ("CRMA"); The Company advanced plans to build a BAM plant in Baie-Comeau with an agreement with The BMI Group to evaluate the feasibility of a brownfield facility at a former paper mill which could reduce overall capex and time to market; In January, the Company began providing samples of three standard BAM products made from LDI graphite and according to the requirements of leading battery makers; The Company announced key management changes in the quarter, appointing Maximillian Meier as Chief Operating Officer and Michael Grimm, the President of Northern's Battery Materials Division, as Chief Commercial Officer; and The Company is in ongoing, active discussions with various government organizations at the federal and provincial level, and internationally, to gain support for its projects and to speed up development of the battery anode supply chain. Financial Highlights: The Company realized record-high average sales prices in the first quarter of $2,550 per tonne (US$1,776 per tonne), 37% above the first quarter of 2024, mainly due to price increases implemented in 2025 and a product mix that included a higher percentage of higher priced flake sizes. This favorable trend is continuing into the second quarter; Revenue fell 27% in the quarter to $4.0 million, based on 1,585 tonnes of graphite concentrate sold. This represents a 47% decrease in volume compared to the first quarter of 2024 as sales were negatively impacted by a maintenance shutdown and production issues after the restart in mid-January; Cash costs of $1,797 (US$1,252) per tonne of graphite concentrate sold increased by 10% compared to costs of $1,628 per tonne (US$1,207) in the first quarter of 2024, primarily due to changes in the sales mix that resulted in more, higher-cost inventory being sold in the 2025 quarter and higher mine and plant costs per tonne produced; Income from mine operations of $0.3 million, compared to a loss from mine operations of $0.5 million during the prior year's first quarter; General and administrative expenses during the first quarter of 2025 increased to $2.5 million versus $2.3 million in the first quarter of 2024, primarily due to legal expenditures and costs related to NGCBM which was just starting up in the prior year period, but were partially offset by the impact of strict overhead cost control measures and lower Namibian costs; During the fourth quarter of 2024 the Company placed the LDI plant and mine under a temporary shutdown for maintenance and repairs and resumed mining and milling operations in mid-January 2025. Costs incurred during the first quarter of 2025 during the shutdown were $0.4 million. During the first quarter of 2024, the LDI mine was on shutdown with costs of $0.6 million. These amounts were recorded in the condensed interim consolidated statements of loss and other comprehensive loss as care and maintenance expenses; The Okanjande plant was temporarily placed in care and maintenance in the third quarter of 2023. Holding costs of $0.3 million incurred during the first quarter of 2025 (2024 - $0.5 million) were recorded in the condensed interim consolidated statements of loss and other comprehensive loss as care and maintenance expenses; Finance costs were $3.2 million in the quarter (2024 - $3.1million). They increased as the impact of higher accretion rates were only partially offset by gains on a revaluation of the Company's royalty liability and senior debt of $0.2 million and $0.2 million, respectively, due to modifications to the anticipated timing of royalty and interest payments. Almost all of the finance costs were non-cash items; A net loss of $5.3 million ($0.04 per share) which included significant non-cash charges relating to depletion and depreciation, finance costs, impairment expenses and drawdown of inventories. Cash used in operating activities was $0.3 million, compared to 0.4 million used in the fourth quarter of 2024; As of March 31, 2025, in line with previous quarters, the Company continued to report its senior secured loan ($26.1 million) and its royalty financing ($15.8 million) as current liabilities as the Company has not met the following covenants related to these instruments: Senior secured loan - As at March 31, 2025, the Company had not paid accrued interest of $3.5 million (US$2.5 million), maintained, at all times, on a consolidated basis, positive working capital, and maintained, at all times, on a consolidated basis, a minimum cash balance of US$750,000; Royalty Financing - As at March, 2025, the Company had not paid royalty amounts with respect to 2024 totaling $2.9 million (US$2.0 million), and has not paid royalty amounts with respect to the first quarter of 2025 of $0.5 million (US$0.4 million) which were due on April 30, 2025; The Company's lender and royalty holder have waived all defaults as of May 29, 2025 effective March 31, 2025. Discussions continue with respect to amending the terms of the senior secured loan and royalty financing to better align them with project timelines that have shifted with markets that are evolving at a slower pace than forecast; The Company's working capital optimization efforts on inventories and receivables offset by the above noted senior debt and royalty classification to current liabilities ($41.8 million in total), resulted in a negative working capital balance of $41.2 million as at March 31, 2025. To view an enhanced version of this graphic, please visit: Northern is advancing toward its goal of becoming a vertically integrated, mine-to-market supplier to traditional downstream customers and to the emerging market for battery anode material. The Company's strategy is to expand production at its Lac des Iles ("LDI") mine, resume and expand production at the Okanjande project in Namibia, advance the Bissett Creek and the Mousseau projects towards development, develop downstream capacity to produce anode material for use in LiBs and EVs in North America and Europe and upgrade graphite mine concentrate into value added industrial products. Market Commentary Amid ongoing geopolitical uncertainty, trade turbulence, and supply chain pressures that continue to underscore the need for secure and diversified sources of graphite, industrial demand for the Company's graphite products remained strong through the first quarter as Northern sold LDI graphite at record-high average prices. This demand trend is expected to continue through 2025, even amid trade tariffs introduced by the administration of US President Donald Trump and with price increases implemented in January of this year. Under the terms of the United States-Mexico-Canada Agreement (USMCA), graphite from Canada remains exempt from new tariffs and Northern's customers have not experienced any negative tariff-related impacts to date. Northern is a key supplier of graphite to U.S. industrial markets, which account for approximately 85 percent of sales. With an estimated 20 percent share of U.S. industrial markets, Northern continues to benefit from strong demand in the refractory industry, where graphite is essential in the production of crucibles, casting molds, and blast furnace linings. Large and jumbo flake graphite — critical to these applications — has become increasingly scarce after China, the dominant producer of graphite, reduced mining activity due to elevated inventories of anode material, effectively removing much of its large-flake supply from the market. At the same time, supply from Western producers was constrained in the quarter by operational challenges, compounding tight global markets. Longer-term, the momentum behind graphite and critical minerals is building, and the Company is actively engaging with governments from the United States and Canada to the European Union as they map out strategies to ensure stable and sustainable supply chains. In early May, Northern participated in high-level discussions with industry and government policymakers in Washington and in Paris where discussions were led by French President Emmanuel Macron. The global industry is especially attuned to developments in U.S. trade policy as the administration of President Trump continues to shape the critical minerals landscape with its evolving tariff regime. In a move that could eventually boost demand for North America-sourced natural and synthetic graphite, on May 20 the U.S. Department of Commerce announced a preliminary decision to impose tariffs of up to 721% on imports of natural and artificial graphite active anode material ("AAM") — used to produce lithium-ion battery anode material — from China after investigating allegations that China is subsidizing production and supply of AAM to the United States. While preliminary, the decision sets the stage for meaningful anti-subsidy duties on Chinese graphite active anode material and marks a major step toward leveling the playing field and creating local demand. Commerce is due to issue a separate, preliminary ruling in July on an antidumping investigation into Chinese graphite imports. Final determinations for both investigations are expected to be issued in December, 2025. Mining Operations Northern's mining projects create a competitive advantage in terms of both current production and the ability to increase output in a relatively quick, modular, low-cost manner by leveraging existing permitting and infrastructure at both LDI and Okanjande. Lac des Iles Mine - Quebec The Company completed a two-month maintenance shutdown of the Lac des Iles processing plant in January as it continued efforts to boost mill output capacity and extend the mine life of its cornerstone asset in Quebec in the short-, medium- and long-term. LDI is the only producing graphite mine in North America, but the existing pit will be mined out and stockpiles used up by the fall of this year. The Company requires an investment of up to $10 million to extend the existing pit, based on a resource estimate published in January 2024 that showed potential to add approximately eight years to the current mine life. The Company continues to seek support from federal, provincial and US government agencies as well as EV and battery manufacturers but has not yet been successful. These efforts have been complicated by difficult financial markets, especially given the current share price. Because there is a lead time from an investment decision to production of approximately six months, the goal is to be able to break ground as soon as possible and ensure a continuous flow of ore to the plant. The new mineral resource estimate also supports the Company's intention to meet rising demand stimulated by EV sales, Chinese export controls and US tariffs on Chinese graphite. Northern is working to permanently move the LDI mill to a seven-days-per week operation, targeting annual nameplate capacity of 25,000 tonnes per year ("tpy"). Demand for LDI's high-quality graphite rose continuously through 2024 and into the first quarter of 2025. It commanded record-high average prices in the January-through-March period, up 37 percent versus the first quarter of last year. LDI processing and production volumes were hampered in the quarter by the mill and mine restart, weather conditions and high strip ratios but began to improve in the second quarter. On the resource front, Northern completed an additional drilling program in the fourth quarter with the objective of further identifying and expanding LDI resources with a lower strip ratio. Core logging and data compilation have been delayed due to the financial constraints the Company is experiencing. Longer-term, LDI has the potential to further extend its life by developing its Mousseau project, which is located approximately 80 km away and represents Northern's fourth significant graphite project along with LDI, Bissett Creek in Ontario and Okanjande in Namibia. The Company is also exploring other avenues to grow production and on April 2 announced an agreement with Graphano Energy Ltd. ("Graphano") to share technical knowledge and expertise to further the exploration and development of their respective properties. The agreement covers the LDI graphite mine and processing facility and Graphano's Lac Aux Bouleaux ("LAB") and Standard properties. The LAB Property is contiguous to the LDI graphite mine and covers the southern extensions of the productive graphite horizons, and the Standard property is between Northern's Mousseau exploration project and the LDI plant. All exploration costs will continue to be borne by the owners of each property. Okanjande Project - Namibia The Okanjande project in Namibia, which has been on care and maintenance since the third quarter of 2023, represents an opportunity to substantially increase graphite production at a lower cost and with a shorter time to market than most competing projects. The project has easy maritime access to European and North American markets and can be used to supply Northern's planned Battery Anode Material facilities in France and at Baie-Comeau, Quebec. Northern continues to evaluate options to fund the Okanjande project through the use of a royalty/stream/debt structure and equity contributed by a strategic partner without having to go to the market at current share prices. A technical report in respect of a preliminary economic assessment ("PEA") for the Okanjande project prepared in accordance with NI 43 101 was filed under the Company's profile on SEDAR+ ( on August 28, 2023. The PEA indicated that the economics are attractive under a plan to move the processing plant from Okorusu to the mine site with higher capital costs but lower operating costs. In addition, greenhouse gas emissions are reduced, sustainability is improved, and the expansion potential of the project is substantially enhanced. The Company plans to restart Okanjande in early 2027, pending financing, to coincide with plans to supply its proposed processing facility in France. With the resumption of production at the Okanjande Project, Northern would become one of the world's largest non-Chinese natural graphite producers. Mine-to-Market-Battery Strategy Northern continued in the quarter to advance its strategy to become one of the world's few integrated producers of natural graphite-based battery anode material outside of China. In March, the Company's proposal to build a BAM facility in France using graphite concentrate from its Okanjande project in Namibia, was granted "Strategic Project" status under the European Union's Critical Raw Materials Act ("CRMA"). The designation enhances its credibility and visibility, will help to accelerate timelines, facilitates faster permitting and improves access to financing while ensuring compliance with the highest environmental and social standards. The designation came barely a year after Northern launched its Battery Materials division ("NGCBM") to lead the Company's downstream expansion. The proposed French facility, requiring an estimated investment of €159 million, is targeted to begin operations in 2028 with an initial capacity of 20,000 tonnes per year of battery-grade anode material. Northern is currently in active discussions with potential off-take partners for its initial production. The mining of graphite at Okanjande is not covered under the scope of the Strategic Project, although Northern intends to file a subsequent proposal that will include extraction activities at the Namibia site. NGCBM also advanced its plans to build a BAM facility in Baie-Comeau, Québec, announcing in April a collaboration with The BMI Group to evaluate a brownfield site at a former paper mill that could accelerate permitting and construction timelines as well as reduce capex compared to the previously announced greenfield alternative. Battery anode material is the single largest component of lithium-ion batteries and is made by upgrading graphite mine concentrate to the exacting specifications of EV battery manufacturers. Northern's planned BAM facilities are intended to address this critical need that is currently missing from the energy transition supply chain in the West. Independent testing has determined that graphite from all of Northern's assets, which are all located close to infrastructure and in politically stable jurisdictions, is battery grade. The Company is also pursuing opportunities to move downstream into non-EV applications in the electronics, construction, graphene and hydrogen fuel cell markets. These markets provide the opportunity to increase revenues and profits through further processing of the Company's graphite mine concentrates. Balance Sheet and Corporate Update Northern continues to report as current liabilities its senior secured loan ($26.1 million) and its royalty financing ($15.8 million) as a result of the Company not meeting certain covenants related to these instruments. The lender and royalty holder have waived all defaults as of May 29, 2025 effective March 31, 2025, and discussions continue with the parties relating to amending the terms of the senior secured loan and royalty financing to better align with project timelines that have shifted with markets that are evolving at a slower pace than forecast. While discussions continue, the lender and royalty holder are supportive of Northern's growth plans and keen to work with the Company to find ways to capitalize on the new resource and extended mine life potential at LDI and allow the Company to benefit from a strong industrial market for graphite in North America as well as coming demand from EV markets. Going forward, the Company intends to maintain strict overhead cost controls that were implemented in 2024, as well as consider a number of other strategies until support for the only operating graphite mine in North America materializes or equity markets improve. The Company also continues to seek support from federal, provincial, US and European government agencies as well as EV and battery manufacturers. Closing Remarks "There's been a clear shift in the global critical minerals narrative, and graphite — as the essential material in lithium-ion batteries — is starting to gain the strategic recognition it deserves as governments in the West look to reduce dependency on Chinese supply chains for critical battery inputs by implementing tariffs or subsidies or strategic raw materials acts," said Mr. Jacquemin. "This is being reflected in customer demand for our graphite and the record prices we realized in the first quarter, and it's only a matter of time before capital markets reflect the reality on the ground. Northern Graphite is positioning itself for that turn by building a company that can deliver an integrated, secure, and local graphite supply chain solution for our customers in Europe and North America , from mine to battery, and from resource to resilience." About Northern Graphite Northern, the only flake graphite producing company in North America, is a Canadian, TSX Venture Exchange listed company that is focused on becoming a world leader in producing natural graphite and upgrading it into high-value products critical to the green economy, including anode material for lithium-ion batteries/EVs, fuel cells and graphene, as well as advanced industrial technologies. The Company's mine-to-battery strategy is spearheaded by its Battery Materials Division, which has a fully equipped, state-of-the-art laboratory in Frankfurt and is focused on developing advanced anode materials to improve the cycle life and increase the charging rate of lithium ion batteries. Northern's graphite assets include the producing Lac des Iles mine in Quebec where the Company plans to increase production to meet growing demand from industrial customers and coming demand from North American battery makers. The Company also owns the large-scale, advanced stage Bissett Creek project in Ontario, the Mousseau Project in Quebec and the fully permitted Okanjande graphite mine in Namibia that is currently on care and maintenance. All projects have "battery quality" graphite and are located close to infrastructure in politically stable jurisdictions. For media inquiries, contactPav Jordan, VP of CommunicationsEmail: pjordan@ For further information, contactNiall Moore, CFOTelephone: (613) 271-2124Email: info@ Qualified PersonGregory Bowes, MBA the Chairman of Northern, is a "qualified person" as defined under NI 43-101 and has reviewed and approved the content of this news release. For additional informationPlease visit the Company's website at the Company's profile on our Social Channels listed below or contact the Company at (613) 271-2124. LinkedInYouTubeXFacebook Cautionary Note Regarding Non-IFRS Performance Measures This news release includes certain non-IFRS performance measures that do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). The Company believes that these measures, in addition to measures prepared in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. The calculation and an explanation of these measures is provided in the Company's Management's Discussion and Analysis and such measures should be read in conjunction with the Company's Management's Discussion and Analysis and financial statements. Cautionary Note Regarding Forward-Looking Statements This news release contains certain "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements in this news release include statements regarding, among others, plans for extending the mine life and increasing output at LDI, bringing the Company's Namibian operations back online, advancing other developments projects to production, developing the capacity to manufacture value added products and raising the financing to complete any or all of these initiatives. All such forward-looking statements are based on assumptions and analyses made by management based on their experience and perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. However, these statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of other parties to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure and the failure of ongoing and contemplated studies to deliver anticipated results or results that would justify and support continued studies, development or operations, and the inability to raise the required financing. Readers are cautioned not to place undue reliance on forward-looking information or statements. Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. 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Yahoo
30-05-2025
- Business
- Yahoo
Northern Graphite Announces First Quarter 2025 Results
Record-High Average Sales Prices, Volumes Impacted by Maintenance Shutdown France/Namibia BAM Project Wins "Strategic" Status Under EU Critical Raw Material Act Mill Maintenance Completed at Lac des Iles Mine Ottawa, Ontario--(Newsfile Corp. - May 30, 2025) - Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU:0NG) (the "Company" or "Northern") is pleased to provide an operating summary and financial highlights for the three month period ending March 31, 2025. The Company's Financial Statements and Management's Discussion and Analysis for the period have been filed on SEDAR+ and posted to the Company website. "In a challenging market environment, Northern Graphite is pushing forward on its growth catalysts. Our Battery Materials Division marked its one-year anniversary by winning 'Strategic Project' status under the EU's Critical Raw Materials Act for a proposal to build a BAM facility in France. This recognition reinforces our broader strategy to build a fully integrated, mine-to-market company supplying processed natural graphite to the lithium-ion battery sector," said Chief Executive Officer Hugues Jacquemin. "At our Lac des Iles ("LDI") mine, we are continuing strict cost controls to preserve cash and working to boost output and satisfy more customer demand than we can currently supply. While commanding record average sales prices for our graphite, cutting costs and increasing income from operations, we completed a major maintenance shutdown in Q1. At the same time, we have yet to secure financing to extend the LDI pit and add about eight years of life to the mine before it runs out of ore by the end of this year. As global markets continue to evolve, we remain flexible, focused, and ready to pivot where necessary to drive our vision forward." To view an enhanced version of this graphic, please visit: Operational Highlights: Driving Battery Strategy The Company experienced strong demand through the first quarter of the year, even amid geopolitical uncertainty and after negotiating higher pricing with customers for 2025; Production for the quarter was hampered by a mill maintenance shutdown completed in mid-January and by a lack of ore availability, however it began to improve in the second quarter; A year after its launch, the NGC Battery Materials division ("NGCBM") achieved some important milestones: On March 31, 2025, the Company announced that its proposal to upgrade graphite from the Okanjande project in Namibia into Battery Anode Material ("BAM") in France was selected as one of 47 Strategic Projects under the European Union's Critical Raw Materials Act ("CRMA"); The Company advanced plans to build a BAM plant in Baie-Comeau with an agreement with The BMI Group to evaluate the feasibility of a brownfield facility at a former paper mill which could reduce overall capex and time to market; In January, the Company began providing samples of three standard BAM products made from LDI graphite and according to the requirements of leading battery makers; The Company announced key management changes in the quarter, appointing Maximillian Meier as Chief Operating Officer and Michael Grimm, the President of Northern's Battery Materials Division, as Chief Commercial Officer; and The Company is in ongoing, active discussions with various government organizations at the federal and provincial level, and internationally, to gain support for its projects and to speed up development of the battery anode supply chain. Financial Highlights: The Company realized record-high average sales prices in the first quarter of $2,550 per tonne (US$1,776 per tonne), 37% above the first quarter of 2024, mainly due to price increases implemented in 2025 and a product mix that included a higher percentage of higher priced flake sizes. This favorable trend is continuing into the second quarter; Revenue fell 27% in the quarter to $4.0 million, based on 1,585 tonnes of graphite concentrate sold. This represents a 47% decrease in volume compared to the first quarter of 2024 as sales were negatively impacted by a maintenance shutdown and production issues after the restart in mid-January; Cash costs of $1,797 (US$1,252) per tonne of graphite concentrate sold increased by 10% compared to costs of $1,628 per tonne (US$1,207) in the first quarter of 2024, primarily due to changes in the sales mix that resulted in more, higher-cost inventory being sold in the 2025 quarter and higher mine and plant costs per tonne produced; Income from mine operations of $0.3 million, compared to a loss from mine operations of $0.5 million during the prior year's first quarter; General and administrative expenses during the first quarter of 2025 increased to $2.5 million versus $2.3 million in the first quarter of 2024, primarily due to legal expenditures and costs related to NGCBM which was just starting up in the prior year period, but were partially offset by the impact of strict overhead cost control measures and lower Namibian costs; During the fourth quarter of 2024 the Company placed the LDI plant and mine under a temporary shutdown for maintenance and repairs and resumed mining and milling operations in mid-January 2025. Costs incurred during the first quarter of 2025 during the shutdown were $0.4 million. During the first quarter of 2024, the LDI mine was on shutdown with costs of $0.6 million. These amounts were recorded in the condensed interim consolidated statements of loss and other comprehensive loss as care and maintenance expenses; The Okanjande plant was temporarily placed in care and maintenance in the third quarter of 2023. Holding costs of $0.3 million incurred during the first quarter of 2025 (2024 - $0.5 million) were recorded in the condensed interim consolidated statements of loss and other comprehensive loss as care and maintenance expenses; Finance costs were $3.2 million in the quarter (2024 - $3.1million). They increased as the impact of higher accretion rates were only partially offset by gains on a revaluation of the Company's royalty liability and senior debt of $0.2 million and $0.2 million, respectively, due to modifications to the anticipated timing of royalty and interest payments. Almost all of the finance costs were non-cash items; A net loss of $5.3 million ($0.04 per share) which included significant non-cash charges relating to depletion and depreciation, finance costs, impairment expenses and drawdown of inventories. Cash used in operating activities was $0.3 million, compared to 0.4 million used in the fourth quarter of 2024; As of March 31, 2025, in line with previous quarters, the Company continued to report its senior secured loan ($26.1 million) and its royalty financing ($15.8 million) as current liabilities as the Company has not met the following covenants related to these instruments: Senior secured loan - As at March 31, 2025, the Company had not paid accrued interest of $3.5 million (US$2.5 million), maintained, at all times, on a consolidated basis, positive working capital, and maintained, at all times, on a consolidated basis, a minimum cash balance of US$750,000; Royalty Financing - As at March, 2025, the Company had not paid royalty amounts with respect to 2024 totaling $2.9 million (US$2.0 million), and has not paid royalty amounts with respect to the first quarter of 2025 of $0.5 million (US$0.4 million) which were due on April 30, 2025; The Company's lender and royalty holder have waived all defaults as of May 29, 2025 effective March 31, 2025. Discussions continue with respect to amending the terms of the senior secured loan and royalty financing to better align them with project timelines that have shifted with markets that are evolving at a slower pace than forecast; The Company's working capital optimization efforts on inventories and receivables offset by the above noted senior debt and royalty classification to current liabilities ($41.8 million in total), resulted in a negative working capital balance of $41.2 million as at March 31, 2025. To view an enhanced version of this graphic, please visit: Northern is advancing toward its goal of becoming a vertically integrated, mine-to-market supplier to traditional downstream customers and to the emerging market for battery anode material. The Company's strategy is to expand production at its Lac des Iles ("LDI") mine, resume and expand production at the Okanjande project in Namibia, advance the Bissett Creek and the Mousseau projects towards development, develop downstream capacity to produce anode material for use in LiBs and EVs in North America and Europe and upgrade graphite mine concentrate into value added industrial products. Market Commentary Amid ongoing geopolitical uncertainty, trade turbulence, and supply chain pressures that continue to underscore the need for secure and diversified sources of graphite, industrial demand for the Company's graphite products remained strong through the first quarter as Northern sold LDI graphite at record-high average prices. This demand trend is expected to continue through 2025, even amid trade tariffs introduced by the administration of US President Donald Trump and with price increases implemented in January of this year. Under the terms of the United States-Mexico-Canada Agreement (USMCA), graphite from Canada remains exempt from new tariffs and Northern's customers have not experienced any negative tariff-related impacts to date. Northern is a key supplier of graphite to U.S. industrial markets, which account for approximately 85 percent of sales. With an estimated 20 percent share of U.S. industrial markets, Northern continues to benefit from strong demand in the refractory industry, where graphite is essential in the production of crucibles, casting molds, and blast furnace linings. Large and jumbo flake graphite — critical to these applications — has become increasingly scarce after China, the dominant producer of graphite, reduced mining activity due to elevated inventories of anode material, effectively removing much of its large-flake supply from the market. At the same time, supply from Western producers was constrained in the quarter by operational challenges, compounding tight global markets. Longer-term, the momentum behind graphite and critical minerals is building, and the Company is actively engaging with governments from the United States and Canada to the European Union as they map out strategies to ensure stable and sustainable supply chains. In early May, Northern participated in high-level discussions with industry and government policymakers in Washington and in Paris where discussions were led by French President Emmanuel Macron. The global industry is especially attuned to developments in U.S. trade policy as the administration of President Trump continues to shape the critical minerals landscape with its evolving tariff regime. In a move that could eventually boost demand for North America-sourced natural and synthetic graphite, on May 20 the U.S. Department of Commerce announced a preliminary decision to impose tariffs of up to 721% on imports of natural and artificial graphite active anode material ("AAM") — used to produce lithium-ion battery anode material — from China after investigating allegations that China is subsidizing production and supply of AAM to the United States. While preliminary, the decision sets the stage for meaningful anti-subsidy duties on Chinese graphite active anode material and marks a major step toward leveling the playing field and creating local demand. Commerce is due to issue a separate, preliminary ruling in July on an antidumping investigation into Chinese graphite imports. Final determinations for both investigations are expected to be issued in December, 2025. Mining Operations Northern's mining projects create a competitive advantage in terms of both current production and the ability to increase output in a relatively quick, modular, low-cost manner by leveraging existing permitting and infrastructure at both LDI and Okanjande. Lac des Iles Mine - Quebec The Company completed a two-month maintenance shutdown of the Lac des Iles processing plant in January as it continued efforts to boost mill output capacity and extend the mine life of its cornerstone asset in Quebec in the short-, medium- and long-term. LDI is the only producing graphite mine in North America, but the existing pit will be mined out and stockpiles used up by the fall of this year. The Company requires an investment of up to $10 million to extend the existing pit, based on a resource estimate published in January 2024 that showed potential to add approximately eight years to the current mine life. The Company continues to seek support from federal, provincial and US government agencies as well as EV and battery manufacturers but has not yet been successful. These efforts have been complicated by difficult financial markets, especially given the current share price. Because there is a lead time from an investment decision to production of approximately six months, the goal is to be able to break ground as soon as possible and ensure a continuous flow of ore to the plant. The new mineral resource estimate also supports the Company's intention to meet rising demand stimulated by EV sales, Chinese export controls and US tariffs on Chinese graphite. Northern is working to permanently move the LDI mill to a seven-days-per week operation, targeting annual nameplate capacity of 25,000 tonnes per year ("tpy"). Demand for LDI's high-quality graphite rose continuously through 2024 and into the first quarter of 2025. It commanded record-high average prices in the January-through-March period, up 37 percent versus the first quarter of last year. LDI processing and production volumes were hampered in the quarter by the mill and mine restart, weather conditions and high strip ratios but began to improve in the second quarter. On the resource front, Northern completed an additional drilling program in the fourth quarter with the objective of further identifying and expanding LDI resources with a lower strip ratio. Core logging and data compilation have been delayed due to the financial constraints the Company is experiencing. Longer-term, LDI has the potential to further extend its life by developing its Mousseau project, which is located approximately 80 km away and represents Northern's fourth significant graphite project along with LDI, Bissett Creek in Ontario and Okanjande in Namibia. The Company is also exploring other avenues to grow production and on April 2 announced an agreement with Graphano Energy Ltd. ("Graphano") to share technical knowledge and expertise to further the exploration and development of their respective properties. The agreement covers the LDI graphite mine and processing facility and Graphano's Lac Aux Bouleaux ("LAB") and Standard properties. The LAB Property is contiguous to the LDI graphite mine and covers the southern extensions of the productive graphite horizons, and the Standard property is between Northern's Mousseau exploration project and the LDI plant. All exploration costs will continue to be borne by the owners of each property. Okanjande Project - Namibia The Okanjande project in Namibia, which has been on care and maintenance since the third quarter of 2023, represents an opportunity to substantially increase graphite production at a lower cost and with a shorter time to market than most competing projects. The project has easy maritime access to European and North American markets and can be used to supply Northern's planned Battery Anode Material facilities in France and at Baie-Comeau, Quebec. Northern continues to evaluate options to fund the Okanjande project through the use of a royalty/stream/debt structure and equity contributed by a strategic partner without having to go to the market at current share prices. A technical report in respect of a preliminary economic assessment ("PEA") for the Okanjande project prepared in accordance with NI 43 101 was filed under the Company's profile on SEDAR+ ( on August 28, 2023. The PEA indicated that the economics are attractive under a plan to move the processing plant from Okorusu to the mine site with higher capital costs but lower operating costs. In addition, greenhouse gas emissions are reduced, sustainability is improved, and the expansion potential of the project is substantially enhanced. The Company plans to restart Okanjande in early 2027, pending financing, to coincide with plans to supply its proposed processing facility in France. With the resumption of production at the Okanjande Project, Northern would become one of the world's largest non-Chinese natural graphite producers. Mine-to-Market-Battery Strategy Northern continued in the quarter to advance its strategy to become one of the world's few integrated producers of natural graphite-based battery anode material outside of China. In March, the Company's proposal to build a BAM facility in France using graphite concentrate from its Okanjande project in Namibia, was granted "Strategic Project" status under the European Union's Critical Raw Materials Act ("CRMA"). The designation enhances its credibility and visibility, will help to accelerate timelines, facilitates faster permitting and improves access to financing while ensuring compliance with the highest environmental and social standards. The designation came barely a year after Northern launched its Battery Materials division ("NGCBM") to lead the Company's downstream expansion. The proposed French facility, requiring an estimated investment of €159 million, is targeted to begin operations in 2028 with an initial capacity of 20,000 tonnes per year of battery-grade anode material. Northern is currently in active discussions with potential off-take partners for its initial production. The mining of graphite at Okanjande is not covered under the scope of the Strategic Project, although Northern intends to file a subsequent proposal that will include extraction activities at the Namibia site. NGCBM also advanced its plans to build a BAM facility in Baie-Comeau, Québec, announcing in April a collaboration with The BMI Group to evaluate a brownfield site at a former paper mill that could accelerate permitting and construction timelines as well as reduce capex compared to the previously announced greenfield alternative. Battery anode material is the single largest component of lithium-ion batteries and is made by upgrading graphite mine concentrate to the exacting specifications of EV battery manufacturers. Northern's planned BAM facilities are intended to address this critical need that is currently missing from the energy transition supply chain in the West. Independent testing has determined that graphite from all of Northern's assets, which are all located close to infrastructure and in politically stable jurisdictions, is battery grade. The Company is also pursuing opportunities to move downstream into non-EV applications in the electronics, construction, graphene and hydrogen fuel cell markets. These markets provide the opportunity to increase revenues and profits through further processing of the Company's graphite mine concentrates. Balance Sheet and Corporate Update Northern continues to report as current liabilities its senior secured loan ($26.1 million) and its royalty financing ($15.8 million) as a result of the Company not meeting certain covenants related to these instruments. The lender and royalty holder have waived all defaults as of May 29, 2025 effective March 31, 2025, and discussions continue with the parties relating to amending the terms of the senior secured loan and royalty financing to better align with project timelines that have shifted with markets that are evolving at a slower pace than forecast. While discussions continue, the lender and royalty holder are supportive of Northern's growth plans and keen to work with the Company to find ways to capitalize on the new resource and extended mine life potential at LDI and allow the Company to benefit from a strong industrial market for graphite in North America as well as coming demand from EV markets. Going forward, the Company intends to maintain strict overhead cost controls that were implemented in 2024, as well as consider a number of other strategies until support for the only operating graphite mine in North America materializes or equity markets improve. The Company also continues to seek support from federal, provincial, US and European government agencies as well as EV and battery manufacturers. Closing Remarks "There's been a clear shift in the global critical minerals narrative, and graphite — as the essential material in lithium-ion batteries — is starting to gain the strategic recognition it deserves as governments in the West look to reduce dependency on Chinese supply chains for critical battery inputs by implementing tariffs or subsidies or strategic raw materials acts," said Mr. Jacquemin. "This is being reflected in customer demand for our graphite and the record prices we realized in the first quarter, and it's only a matter of time before capital markets reflect the reality on the ground. Northern Graphite is positioning itself for that turn by building a company that can deliver an integrated, secure, and local graphite supply chain solution for our customers in Europe and North America , from mine to battery, and from resource to resilience." About Northern Graphite Northern, the only flake graphite producing company in North America, is a Canadian, TSX Venture Exchange listed company that is focused on becoming a world leader in producing natural graphite and upgrading it into high-value products critical to the green economy, including anode material for lithium-ion batteries/EVs, fuel cells and graphene, as well as advanced industrial technologies. The Company's mine-to-battery strategy is spearheaded by its Battery Materials Division, which has a fully equipped, state-of-the-art laboratory in Frankfurt and is focused on developing advanced anode materials to improve the cycle life and increase the charging rate of lithium ion batteries. Northern's graphite assets include the producing Lac des Iles mine in Quebec where the Company plans to increase production to meet growing demand from industrial customers and coming demand from North American battery makers. The Company also owns the large-scale, advanced stage Bissett Creek project in Ontario, the Mousseau Project in Quebec and the fully permitted Okanjande graphite mine in Namibia that is currently on care and maintenance. All projects have "battery quality" graphite and are located close to infrastructure in politically stable jurisdictions. For media inquiries, contactPav Jordan, VP of CommunicationsEmail: pjordan@ For further information, contactNiall Moore, CFOTelephone: (613) 271-2124Email: info@ Qualified PersonGregory Bowes, MBA the Chairman of Northern, is a "qualified person" as defined under NI 43-101 and has reviewed and approved the content of this news release. For additional informationPlease visit the Company's website at the Company's profile on our Social Channels listed below or contact the Company at (613) 271-2124. LinkedInYouTubeXFacebook Cautionary Note Regarding Non-IFRS Performance Measures This news release includes certain non-IFRS performance measures that do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). The Company believes that these measures, in addition to measures prepared in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. The calculation and an explanation of these measures is provided in the Company's Management's Discussion and Analysis and such measures should be read in conjunction with the Company's Management's Discussion and Analysis and financial statements. Cautionary Note Regarding Forward-Looking Statements This news release contains certain "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements in this news release include statements regarding, among others, plans for extending the mine life and increasing output at LDI, bringing the Company's Namibian operations back online, advancing other developments projects to production, developing the capacity to manufacture value added products and raising the financing to complete any or all of these initiatives. All such forward-looking statements are based on assumptions and analyses made by management based on their experience and perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. However, these statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of other parties to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure and the failure of ongoing and contemplated studies to deliver anticipated results or results that would justify and support continued studies, development or operations, and the inability to raise the required financing. Readers are cautioned not to place undue reliance on forward-looking information or statements. Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. To view the source version of this press release, please visit
Yahoo
21-05-2025
- Business
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Northern Graphite Comments on US Department of Commerce Preliminary Decision to Place Tariffs of up to 721% on China Graphite AAM
Ottawa, Ontario--(Newsfile Corp. - May 21, 2025) - Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG) (the "Company" or "Northern") is pleased to comment on a U.S. Department of Commerce ("Commerce") preliminary decision to impose tariffs of up to 721% on natural and artificial graphite active anode material (AAM) from China. "While still preliminary, this marks an important development for North American producers and for Northern Graphite in particular. As the only current producer of natural graphite in North America - and with plans to build a battery materials facility in Canada - we are positioned to help meet the growing demand for secure, local and sustainable anode material supply," said Northern Chief Executive Officer Hugues Jacquemin. "The U.S. Department of Commerce's decision sets the stage for meaningful anti-subsidy duties on Chinese graphite active anode material and marks a major step toward leveling the playing field and creating local demand." The decision is the result of an investigation by Commerce to assess whether the Chinese government is subsidizing the production and supply of graphite AAM to the United States. Commerce is due to issue a second preliminary decision in July on an antidumping investigation into Chinese graphite imports. A final determination for both investigations will be issued around December 5, 2025. AAM is produced by upgrading graphite mine concentrates for use in lithium ion batteries and it is their largest component. Approximately 90% of this upgrading is currently done in China, spurring other regions to take actions like implementing tariffs and strategic raw materials acts to help establish the industry in the West and build independent supply chains. "On May 20, 2025, the U.S. Department of Commerce announced its preliminary affirmative determination in the countervailing duty (CVD) investigation of active anode material from the People's Republic of China (China). Commerce is also conducting concurrent antidumping duty (AD) investigation of active anode material from China," Commerce stated on its website. The antidumping and countervailing duty cases were initiated by the American Active Anode Material Producers (AAAMP) alongside other North American AAM industry petitioners with Commerce and the International Trade Commission (ITC) in December 2024. About Northern Graphite Northern, the only flake graphite producing company in North America, is a Canadian, TSX Venture Exchange listed company that is focused on becoming a world leader in producing natural graphite and upgrading it into high-value products critical to the green economy, including anode material for lithium-ion batteries/EVs, fuel cells and graphene, as well as advanced industrial technologies. The Company's mine-to-battery strategy is spearheaded by its Battery Materials Division, which has a fully equipped, state-of-the-art laboratory in Frankfurt and is focused on developing advanced anode materials to improve the cycle life and increase the charging rate of lithium ion batteries. Northern's graphite assets include the producing Lac des Iles mine in Quebec where the Company plans to increase production to meet growing demand from industrial customers and coming demand from North American battery makers. The Company also owns the large-scale, advanced stage Bissett Creek project in Ontario, the Mousseau Project in Quebec and the fully permitted Okanjande graphite mine in Namibia that is currently on care and maintenance. All projects have "battery quality" graphite and are located close to infrastructure in politically stable jurisdictions. For media inquiries contactPav Jordan, VP of CommunicationsEmail: pjordan@ For additional information Please visit the Company's website at the Company's profile on our Social Channels listed below or contact the Company at (613) 271-2124. LinkedInYouTubeTwitterFacebook Cautionary Note Regarding Forward-Looking Statements This news release contains certain "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements in this news release include statements regarding, among others, the Company's plans to extend the mine life of its LDI mine, develop its Baie-Comeau Battery Anode Material facility, intentions to restart the Okanjande mine in Namibia and development plans for its other projects including Bissett Creek. All such forward-looking statements are based on assumptions and analyses made by management based on their experience and perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. However, these statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of other parties to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure and the failure of ongoing and contemplated studies to deliver anticipated results or results that would justify and support continued studies, development or operations and the inability to raise required financing. Readers are cautioned not to place undue reliance on forward-looking information or statements. Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. 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Yahoo
02-04-2025
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Northern Graphite and Graphano Energy Announce Strategic Collaboration for Graphite Resource Development
Ottawa, Ontario and Vancouver, British Columbia--(Newsfile Corp. - April 2, 2025) - Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG) ("Northern") and Graphano Energy Ltd. (TSXV: GEL) (FSE: 97G0) ("Graphano") are pleased to announce an agreement to share technical knowledge and expertise to further the exploration and development of their respective properties in a more consolidated and efficient manner with increased opportunities for success. The agreement covers Northern's Lac des Iles ("LDI") graphite mine and processing facility, currently North America's only producing graphite mine, and Graphano's Lac Aux Bouleaux ("LAB") and Standard properties. The LAB Property is contiguous to the LDI graphite mine and covers the southern extensions of the productive graphite horizons and the Standard property is between Northern's Mousseau West exploration project and the LDI plant. The companies intend to share geological, geophysical, and metallurgical data and technical expertise to advance graphite exploration and development in the area with the goal of expanding resources that can be processed at the LDI plant. Northern and Graphano will cooperate on resource modeling, drilling programs, metallurgical testing, and potentially future production sharing arrangements. Both companies are committed to a collaborative approach that enhances operational efficiencies and supports the long-term development of critical mineral resources in Canada. All exploration costs will be borne by the owners of each property. "This partnership is a natural step and a win/win for both companies," said Northern Chief Executive Officer Hugues Jacquemin. "The combination of our processing capacity and knowledge of graphite deposits in the area with Graphano's promising graphite assets could increase the odds for success and potentially create new sources of ore for the LDI plant while shortening Graphano's timeline to cash flow and production. At the same time, it represents a more efficient and consolidated approach to graphite exploration and development in the area that could help meet rising global demand while reinforcing Canada's role as a reliable supplier of critical materials." Graphano CEO and President Dr. Luisa Moreno echoed these sentiments: "We are excited to work alongside Northern to accelerate the development of our graphite assets. This agreement helps to not only shorten our development timeline and lower capital costs but also aligns with our vision of enhancing Canada's capacity to meet growing global demand for clean and sustainable graphite." About Northern GraphiteNorthern, the only flake graphite producing company in North America, is a Canadian, TSX Venture Exchange listed company that is focused on becoming a world leader in producing natural graphite and upgrading it into high-value products critical to the green economy, including anode material for lithium-ion batteries/EVs, fuel cells and graphene, as well as advanced industrial technologies. Northern's mine-to-battery strategy is spearheaded by its Battery Materials Division, which has a fully equipped, state-of-the-art laboratory in Frankfurt. The Division is focused on developing advanced anode materials to improve the cycle life and increase the charging rate of lithium-ion batteries and on marketing Northern's patented Porocarb® product. Porocarb® is a carbon-based material that enhances the performance of both solid state and lithium-ion batteries and is currently being evaluated by leading global battery manufacturers with very positive results. Northern's graphite assets include the producing Lac des Iles mine in Quebec where Northern plans to increase production to meet growing demand from industrial customers and coming demand from North American battery makers. Northern also owns the large-scale, advanced stage Bissett Creek project in Ontario, the Mousseau project in Quebec and the fully permitted Okanjande graphite mine in Namibia. Okanjande is currently on care and maintenance and represents an opportunity to substantially increase graphite production at a lower cost and with a shorter time to market than most competing projects. All projects have "battery quality" graphite and are located close to infrastructure in politically stable jurisdictions. About Graphano Energy Energy Ltd. is an exploration and development company that is focused on evaluating, acquiring, and developing energy metals resources from exploration to production. Graphite is one of the most in-demand technology minerals that is required for a green and sustainable world. Graphano's Lac aux Bouleaux property, situated adjacent to Canada's only producing graphite mine, in Quebec, Canada, has historically been an active area for natural graphite. With the demand for graphite growing in some of the most prominent and cutting-edge industries, such as lithium batteries in electric cars and other energy storage technologies, Graphano is developing its projects to meet the demands of the future. For Northern media inquiries:Pav Jordan, VP of CommunicationsEmail: pjordan@ For additional information on Northern:Please visit Northern's website at the Company's profile on the Social Channels listed below or contact Northern at (613) 271-2124. LinkedIn YouTube Twitter Facebook For Graphano media inquiries:Jay Richardson, CFO and DirectorEmail: info@ For additional information on Graphano:Please visit Graphano's website at the Company's profile on or contact Graphano at (416) 410-5297. Cautionary Note Regarding Forward-Looking Statements This news release contains certain "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements in this news release include statements regarding, among others, the exploration and development collaboration between Northern and Graphano and the expected benefits thereof, the Company's plans to increase output at LDI and development plans with respect to the Okanjande mine in Namibia, the Bissett Creek and Mousseau projects in Ontario and its planned Baie-Comeau Battery Anode Material plant. All such forward-looking statements are based on assumptions and analyses made by management based on their experience and perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. However, these statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of other parties to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure and the failure of ongoing and contemplated studies to deliver anticipated results or results that would justify and support continued studies, development or operations and the inability to raise required financing. Readers are cautioned not to place undue reliance on forward-looking information or statements. Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. To view the source version of this press release, please visit
