The results from the study, which comprises the phase 2 Metawinie mine and Becancour Battery Material Plant projects showed an after-tax NPV8% for the integrated model of C$1,581 million (US$1,215 million) and an after-tax IRR of 21%. The after-tax payback period is viewed as 4.2 years.
The after-tax NPV8%, IRR, and payback period for the mine are C$571 million, 22.2%, and 3.7 years, respectively. And for the battery material plant, the metrics stand at C$1,010 million, 20.4%, and 4.5 years.
"NMG is positioning itself as North America's largest, fully integrated natural graphite production to relieve battery and EV manufacturers from their overreliance on Chinese production," NMG's founder, president, and CEO Eric Desaulniers said.
The initial capital expenditure for the integrated project is set at C$1,404 million, which is made up of C$481 million for the mine and C$923 million for the battery material plant. The annual operating expenditure is viewed as C$195 million, with the mine accounting for C$58 million, and the plant C$136 million.
The mine's average annual production is viewed as 103,328 tonnes of graphite concentrate, and the plant is set to see 42,616 tonnes of anode material, 3,007 tonnes of purified jumbo flakes, and 18,384 tonnes of by-product fines.
The life of mine is 25 years.
"The successful upstream integration is designed to ensure that we have access to high-quality, responsible feedstock for decades to come, and provides battery and EV manufacturers with the assurance of a traceable, local, and carbon-neutral supply," NMG's chair Arne Frandsen said.
NMG said that the study has shown that the projects are technically feasible as well as economically viable, which will strengthen its ongoing finance efforts.
Once a final investment decision is made, the phase 2 Matawinie mine and Becancour plant could be built within about a 30-month schedule, the company said.
NMG's share price fell 6% day on day to C$6.20 on July 6. The company has a market capitalization of C$345.61 million.