Nouveau Monde Mining (NOU) AI Stock Analysis

• Market Cap: C$330.41M
• Dividend Yield: N/A
• Average Volume (3M): 22.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: N/A
• EPS Growth: -13.44%
• Country: CA
• Employees: 89
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Mining
• EPS (TTM): -0.79
• Shares Outstanding: 152,261,180
• 10 Day Avg. Volume: 30,406
• 30 Day Avg. Volume: 22,042
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -10.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.57
• Price Target Upside: 55.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Nouveau Monde Mining is facing significant financial challenges with persistent losses and no revenue generation, heavily impacting its score. While technical indicators suggest some positive momentum, the lack of profitability and unattractive valuation metrics weigh down the overall assessment. The absence of earnings call insights and corporate events leaves key strategic and operational questions unanswered.

Positive Factors

Community Engagement

Nouveau Monde Graphite Inc. has signed an impact benefit agreement with the First Nation of Manawan, ensuring consent and environmental respect for the Matawinie Mining Project.

Financial Prospects

The Bécancour Battery Material Plant is estimated to have an after-tax NPV of $801.0M and an 18.0% IRR, indicating strong financial potential.

Project Development

Progress toward production is being made as detailed engineering and procurement are undertaken for the Matawinie Mine and Bécancour Battery Material Plant.

Negative Factors

Stock Valuation

The price target was decreased to $2.75 from $3.00 due to recent dilution from NMG's offering.

Nouveau Monde Mining Business Overview & Revenue Model

Company Description

Nouveau Monde Graphite (NOU) is a Canadian company focused on the production and supply of high-purity graphite-based solutions. Operating primarily within the mining and materials sectors, the company is dedicated to developing sustainable graphite mining operations and advanced manufacturing techniques to cater to the growing demand for battery and energy storage applications. Its flagship project is located in Quebec, which aims to establish the company as a leading producer in the graphite market.

How the Company Makes Money

Nouveau Monde Graphite makes money by extracting and processing graphite from its mining operations and selling it to various industries, particularly those involved in lithium-ion battery production, electric vehicles, and energy storage systems. The company generates revenue through long-term supply agreements and partnerships with key players in the battery and energy sectors. Additionally, Nouveau Monde Graphite invests in research and development to enhance the efficiency and sustainability of its graphite production, which can provide a competitive edge and potentially lead to new revenue streams.

Nouveau Monde Mining Financial Statement Overview

Summary

Nouveau Monde Mining faces significant financial challenges, marked by persistent losses and an absence of revenue. While the company's debt levels are manageable, the lack of operational cash flow and profitability poses risks to long-term sustainability. Strategic changes are necessary to improve revenue generation and financial stability.

Income Statement

Nouveau Monde Mining has consistently reported zero revenue, indicating a lack of sales or output. The company also has negative net income and negative EBIT, reflecting ongoing operational losses. The absence of revenue growth or profitability raises concerns about the company's ability to generate income.

Balance Sheet

The company has a relatively low debt-to-equity ratio, indicating limited reliance on debt financing. However, the negative equity in some periods signifies potential financial instability. The equity ratio suggests some level of asset backing, but the overall financial health is concerning due to the lack of revenue generation.

Cash Flow

Nouveau Monde Mining shows negative operating and free cash flows, indicating insufficient cash generation from operations to cover expenses. While there have been inflows from financing activities, these are not sustainable long-term solutions without operational cash flow improvements.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-11.56M	-25.40M	-4.27M	-876.00K	-854.00K	-724.03K
	EBIT
-86.36M	55.10M	55.19M	-38.48M	16.71M	-5.79M
	EBITDA
-51.21M	-47.43M	-41.03M	-36.08M	-15.51M	-16.05M
	Net Income Common Stockholders
-67.96M	-55.98M	-47.71M	-39.89M	-19.22M	-6.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
88.03M	36.33M	59.92M	62.35M	4.52M	4.10M
	Total Assets
175.84M	123.94M	150.07M	126.35M	21.16M	53.08M
	Total Debt
60.04M	57.47M	61.35M	4.45M	17.37M	5.11M
	Net Debt
-27.99M	21.14M	1.43M	-57.90M	12.85M	1.03M
	Total Liabilities
92.47M	69.51M	77.75M	20.65M	26.49M	15.72M
	Stockholders Equity
83.37M	54.43M	72.32M	105.69M	-5.34M	37.36M
Cash Flow		Free Cash Flow
-56.38M	-53.92M	-71.56M	-71.31M	-18.17M	-20.56M
	Operating Cash Flow
-45.73M	-39.52M	-44.88M	-34.33M	-18.05M	-5.14M
	Investing Cash Flow
-10.40M	-10.07M	-28.00M	-34.58M	-661.00K	-15.19M
	Financing Cash Flow
64.48M	26.29M	70.29M	125.73M	19.15M	20.61M

Nouveau Monde Mining Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NOU, the sentiment is Neutral. The current price of 2.3 is above the 20-day moving average (MA) of 2.20, below the 50-day MA of 2.39, and above the 200-day MA of 2.27, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 12.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:NOU.

Nouveau Monde Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GPH	55 Neutral	$130.03M	―	-11.19%	―	―	24.32%
Sector *	47 Neutral	$2.43B	-3.06	-22.76%	3.59%	4.02%	-29.07%
NGC	44 Neutral	$12.45M	―	-329.25%	―	31.19%	-46.99%
NOU	39 Underperform	C$330.41M	―	-70.44%	―	―	-13.44%
LAC	39 Underperform	$769.78M	―	-4.13%	―	―	―

Nouveau Monde Mining Corporate Events

Nouveau Monde Graphite Uplists to Toronto Stock Exchange

Nouveau Monde Graphite Inc. has announced its uplisting to the Toronto Stock Exchange, effective January 20, 2025, after achieving significant commercial, financing, and corporate milestones in 2024. This move is seen as a natural progression for the company, enhancing its visibility and credibility in the capital market, and supporting its growth in the North American battery and EV sector by attracting strategic investors.

Nouveau Monde Secures $50M in Strategic Funding

Nouveau Monde Graphite has successfully closed a US$50 million private placement from Canada Growth Fund and Investissement Québec. The funds will be used to advance engineering and procurement projects, support critical activities, and cover operational costs. This financial move highlights NMG’s strategic efforts to enhance its market position.

Nouveau Monde Graphite Secures $50M Investment Boost

Nouveau Monde Graphite Inc. has secured a US$50 million equity investment from the Canada Growth Fund and the Government of Québec to advance its graphite operations aimed at the North American battery and EV markets. This investment will support the development of their Phase-2 Matawinie Mine and Bécancour Battery Material Plant, aligning with governmental strategies for critical minerals and battery value chains.

Nouveau Monde Graphite Strengthens Board with New Appointment

Nouveau Monde Graphite has announced the appointment of Chantal Sorel to its Board of Directors, bringing her extensive experience in project management and strategic development to the company. Her expertise comes at a pivotal time as NMG prepares for significant growth and aims to become a leader in the North American natural graphite market.

Nouveau Monde and Atikamekw Forge Sustainable Agreement

Nouveau Monde Graphite (NMG) has entered an impact benefit agreement with the Atikamekw First Nation of Manawan for the development of the Matawinie Mining Project. This collaboration aims to responsibly develop graphite, ensuring environmental respect and providing benefits to the local community. The agreement reflects a commitment to mutual respect and a sustainable future for the First Nation and NMG.