Nouveau Monde Mining (NOU) AI Stock Analysis

• Market Cap: C$347.16M
• Dividend Yield: N/A
• Average Volume (3M): 19.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.80
• Revenue Growth: N/A
• EPS Growth: -13.44%
• Country: CA
• Employees: 89
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Mining
• EPS (TTM): N/A
• Shares Outstanding: 152,261,180
• 10 Day Avg. Volume: 16,683
• 30 Day Avg. Volume: 19,499
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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$3.56
• Price Target Upside: 42.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: ―

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

Analyst Recommendation

The analyst's recommendation remains a Buy, supported by a detailed discounted cash flow valuation and robust balance sheet.

Financial Potential

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.

Technological Development

Technological development and project improvements are highlighted in the updated Feasibility Study report for the Matawinie Mine and Bécancour Battery Material Plant.

Negative Factors

Stock Dilution

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 Inc is a mineral exploration company. The company only operating segment is the acquisition, exploration, and evaluation of mining properties and all of its activities are conducted in Quebec, Canada. Its properties include Mac's Lead property Riviere-aux-Castors property and Matawinie property. The company's products are used in Metallurgy, Energy and Engineering materials sector.

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
EBITDA	-51.21M	-47.43M	-41.03M	-36.08M	-15.51M	-16.05M
Net Income	-67.96M	-55.98M	-47.71M	-39.89M	-19.22M	-6.83M
Balance Sheet
Total Assets	147.94M	123.94M	150.07M	126.35M	21.16M	53.08M
Cash, Cash Equivalents and Short-Term Investments	56.50M	36.33M	59.92M	62.35M	4.52M	4.10M
Total Debt	17.71M	57.47M	61.35M	4.45M	17.37M	5.11M
Total Liabilities	38.47M	69.51M	77.75M	20.65M	26.49M	15.72M
Stockholders Equity	109.47M	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: Positive
• Last Price: 2.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NOU, the sentiment is Positive. The current price of 2.5 is above the 20-day moving average (MA) of 2.31, above the 50-day MA of 2.40, and above the 200-day MA of 2.33, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 64.65 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NOU.

Nouveau Monde Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	HK$16.41B	4.43	-5.52%	5.25%	-3.57%	-61.41%
NOU	39 Underperform	C$347.16M	―	-46.88%	―	―	-13.44%
FNM		C$111.42M	―	-122.33%	―	―	―
CDPR	28 Underperform	C$255.55M	5.73	57.45%	―	-95.08%	―
FLCN		C$57.15M	―	-128.98%	―	―	―
VLTLF		$28.47M	―	-85.24%	―	―	―
NOAL		C$89.36M	―	-146.86%	―	―	―

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.