Nouveau Monde Graphite (TSXV: NOU; NYSE: NMG) has released an integrated feasibility study for its Matawinie mine project and Bécancour battery material plant, both in Quebec, that reported a higher capital expenditure than expected by BMO analysts.
The projects are located within a 150-km radius of Montreal.
According to the latest study, the Matawinie mine project is expected to produce an average of 103,328 tonnes of graphite concentrate annually over 25 years, with the initial capex pegged $481 million. At an 8% discount rate, Matawinie would generate a post-tax net present value (NPV) of $571 million and a post-tax internal rate of return (IRR) of 22.2%.
The Bécancour battery material plant is expected to produce 42,616 tonnes of anode material, 3,007 tonnes of purified jumbo flakes and 18,384 tonnes of by-product fine flakes on average every year. The initial capex for the plant is expected to be about $923 million. At an 8% discount rate, the project would generate a post-tax NPV of $1.01 billion and a post-tax IRR of 20.4%
“Market trends have accelerated in past months and while inflation and logistics turbulences present a more challenging environment, we have demonstrated our graphite expertise, advanced manufacturing capacity and complex project management skills to execute our vision,” Arne H Frandsen, the company’s chairman, said in a press release.