Northern Graphite (NGC) AI Stock Analysis

• Market Cap: C$10.71M
• Dividend Yield: N/A
• Average Volume (3M): 70.31K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.04
• Revenue Growth: 13.94%
• EPS Growth: -24.54%
• Country: CA
• Employees: 76
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Industrial Materials
• EPS (TTM): -0.04
• Shares Outstanding: 133,852,300
• 10 Day Avg. Volume: 37,798
• 30 Day Avg. Volume: 70,306
• PEG Ratio: -0.03
• Price to Book (P/B): -0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -63.74
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: C$0.00 ▼(-100.00%Downside)

The overall stock score is heavily influenced by Northern Graphite's poor financial performance, which poses significant risks. While there are some positive strategic developments, they are overshadowed by weak financials and unfavorable valuation metrics. Technical analysis also indicates bearish trends, further impacting the score.

Northern Graphite Business Overview & Revenue Model

Company Description

Northern Graphite Corporation (NGC) is a Canadian-based mining company focused on the exploration and development of graphite deposits. The company operates primarily in the resource sector, where it aims to become a leading provider of high-quality graphite products. Northern Graphite's core offerings include the extraction and processing of natural graphite, which is a critical component in various industrial applications, including batteries, fuel cells, and other high-tech materials.

How the Company Makes Money

Northern Graphite makes money through the exploration, extraction, and sale of natural graphite. The company's revenue model is based on mining graphite from its properties, processing it into a market-ready form, and selling it to industries that require graphite for their products. Key revenue streams include direct sales of graphite to manufacturers in the battery, energy storage, and electronics sectors. The company may also engage in strategic partnerships or joint ventures to enhance its production capabilities or expand its market reach. Additionally, factors such as the global demand for electric vehicles and renewable energy technologies significantly contribute to its earnings potential, as these industries are major consumers of graphite.

Northern Graphite Financial Statement Overview

Summary

Northern Graphite is facing significant financial challenges, with persistent losses and a weakening balance sheet. While revenue has grown, the company struggles with profitability and cash generation. High leverage and negative equity pose risks to financial stability.

Income Statement

Northern Graphite has shown revenue growth over the past few years, increasing from $11.99 million in 2022 to $22.73 million in 2024. However, the company is struggling with profitability, consistently reporting net losses. The gross profit margin has deteriorated, evidenced by a negative gross profit in 2024. The net profit margin remains negative due to high operating expenses and interest costs, impacting overall profitability.

Balance Sheet

The balance sheet reflects financial instability, with negative stockholders' equity in 2024, indicating more liabilities than assets. The debt-to-equity ratio is concerning due to significant debt levels and negative equity. The company's equity ratio has declined, showing increased reliance on debt financing.

Cash Flow

The cash flow position is weak, with negative operating cash flow and free cash flow, indicating challenges in generating cash from operations. The company has been reliant on financing activities to support its cash needs. The free cash flow to net income ratio is unfavorable, demonstrating inefficiencies in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.24M	22.73M	17.10M	11.99M	0.00	0.00
Gross Profit	-112.00K	-310.00K	1.93M	2.65M	-31.50K	-34.18K
EBITDA	-17.62M	-20.96M	-14.55M	-7.79M	-3.19M	-833.95K
Net Income	-35.37M	-38.80M	-23.64M	-14.55M	-2.79M	-943.96K
Balance Sheet
Total Assets	77.39M	77.24M	91.23M	102.06M	19.66M	15.22M
Cash, Cash Equivalents and Short-Term Investments	323.00K	373.00K	3.60M	5.64M	4.33M	1.39M
Total Debt	42.96M	41.10M	27.55M	21.90M	0.00	0.00
Total Liabilities	103.30M	98.64M	75.44M	65.88M	1.92M	553.66K
Stockholders Equity	-25.91M	-21.40M	15.79M	36.18M	17.73M	14.67M
Cash Flow
Free Cash Flow	-168.00K	-1.70M	-9.65M	-16.96M	-2.08M	-700.36K
Operating Cash Flow	252.00K	-1.18M	-4.73M	-10.51M	-1.40M	-525.45K
Investing Cash Flow	-563.00K	-563.00K	-4.48M	-51.57M	-1.30M	352.22K
Financing Cash Flow	-104.00K	-1.01M	7.34M	63.38M	5.06M	0.00

Northern Graphite Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NGC, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.09, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.21 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NGC.

Northern Graphite Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LLG	61 Neutral	C$10.16M	0.88	-18.56%	―	―	―
GMA	59 Neutral	C$26.53M	―	-65.04%	―	-89.84%	-16.41%
EMM	48 Neutral	C$20.57M	―	-43.82%	―	―	-55.00%
Sector *	44 Neutral	C$964.86M	-6.72	-13.73%	2.52%	17.53%	-32.55%
NGC	40 Underperform	C$10.71M	―	-329.25%	―	13.94%	-24.54%
FMS	36 Underperform	C$11.65M	―	-14.62%	―	―	-49.81%

Northern Graphite Corporate Events

Northern Graphite Acquires Key Intellectual Property for Carbon Material Processing

Northern Graphite has entered into agreements to acquire intellectual property related to carbon material processing technology previously licensed from Heraeus, enabling it to develop, produce, and sell Porocarb®. This acquisition allows Northern to establish commercial production agreements and license the technology to third parties, generating short- and long-term royalty revenues. The company aims to enhance its integrated growth strategy and strengthen its position in the graphite industry by advancing the development and commercialization of its carbon material processing technology.

Northern Graphite Reports Q1 2025 Results Amid Strategic Advances

Northern Graphite Corporation reported its first-quarter 2025 results, highlighting record-high average sales prices despite a decrease in revenue due to a maintenance shutdown at the Lac des Iles mine. The company achieved strategic project status under the EU’s Critical Raw Materials Act for its Battery Materials Division, which plans to build a Battery Anode Material facility in France. This recognition aligns with Northern Graphite’s strategy to enhance its presence in the battery materials market. The company is also exploring the feasibility of a BAM plant in Baie-Comeau and is in discussions with various government bodies to support its projects. Despite production challenges, Northern Graphite remains focused on cost control and increasing output to meet customer demand.

Northern Graphite Applauds U.S. Tariffs on Chinese Graphite AAM

Northern Graphite has welcomed a preliminary decision by the U.S. Department of Commerce to impose tariffs of up to 721% on Chinese graphite active anode material (AAM). This decision is part of a broader investigation into whether China is subsidizing its graphite AAM production, with final determinations expected by December 2025. As the only current producer of natural graphite in North America, Northern Graphite is well-positioned to benefit from this decision, which aims to create a more level playing field and boost local demand for graphite AAM. This move could significantly impact the graphite industry by encouraging the establishment of independent supply chains in North America.

Northern Graphite Announces Stock Options Grant and RSU Vesting Amendments

Northern Graphite Corporation has granted 125,000 stock options to an officer and an employee, with an exercise price of $0.105 per share, expiring in 2030. The company also amended the vesting periods for 350,000 restricted share units, reflecting its strategic focus on incentivizing key personnel to drive future growth and operational success.

Northern Graphite Reports 2024 Results Amid Expansion and Financing Challenges

Northern Graphite Corporation announced its 2024 year-end results, highlighting strict cost controls and exploration success at the Lac des Iles mine. The company faces challenges in securing financing to expand its pit, crucial for continued operations. Despite geopolitical uncertainties, Northern Graphite increased revenues by 33% and sales volumes by 45%, driven by rising industrial demand for graphite in North America. The company is advancing its battery materials division and engaging with global battery manufacturers to strengthen its position in the battery supply chain.

Northern Graphite Gains Strategic Support for Quebec BAM Facility

Northern Graphite has received support from the Port of Rotterdam for its planned Battery Anode Material (BAM) facility in Baie-Comeau, Quebec, marking a significant step in establishing a transatlantic graphite supply chain. This development aligns with agreements between the Dutch and Quebec governments and positions Northern Graphite as a key player in the critical minerals sector, enhancing its capacity to supply the global battery market and contribute to the energy transition in Europe and North America.

Northern Graphite and BMI Group Plan Battery Anode Facility in Quebec

Northern Graphite and The BMI Group are collaborating to explore the feasibility of establishing a Battery Anode Material (BAM) facility at a former paper mill in Baie-Comeau, Quebec. This initiative aims to accelerate the construction of a BAM plant, leveraging existing infrastructure to reduce time to market and support Quebec and Canada’s critical mineral strategy. The partnership could position Canada as a leader in battery materials, addressing the growing demand for graphite in electric vehicles and renewable energy. If successful, it would enhance Northern’s position as a major integrated graphite producer and contribute to the development of BMI’s Critical Mineral Corridor, which connects mineral resources in Ontario and Quebec to global markets.