August 29, 2024 8:15 AM EDT | Source: Northern Graphite Corporation
- Implemented Strict Cost Control Measures to Safeguard Working Capital and Strengthen Balance Sheet
- Raised Output from Lac des Iles Mine to Enhance Operating Income
- Achieved Near Record Graphite Sales in New Markets
Ottawa, Ontario–(Newsfile Corp. – August 29, 2024) – Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG) (the “Company” or “Northern”) is pleased to present an operational summary and financial highlights for the three and six month periods ending June 30, 2024. The Company’s Financial Statements and Management’s Discussion and Analysis for the period have been filed on SEDAR+ and posted to the Company’s website.
“In the second quarter, we took decisive action to manage our cash position, ease the strain on working capital, and provide flexibility to pursue growth catalysts. This included cost-cutting measures and inventory sales, resulting in higher operating income,” stated Northern CEO Hugues Jacquemin. “We also ramped up production at LDI, achieving near-record sales volumes to industrial customers in new geographies. While facing challenges in financial markets, we remain focused on our strategy to sell to the EV battery space and are implementing measures to navigate the current environment until graphite markets recover.”
Operational Highlights: Driving Growth Initiatives
- Increased production at LDI mine to meet rising customer demand and escalate operating income
- Planning new pit opening and drilling program at LDI to expand production
- Received grant from Québec’s Ministère des Ressources Naturelles et des Forêts for drilling activities at LDI
- Engaged with battery manufacturers to use Porocarb® in lithium-ion batteries
- Collaborated with government organizations to advance battery anode supply chain
Financial Highlights: Continued Record Sales, Cash Management Focus
- Revenue of $5.5 million based on record graphite sales volumes
- Strong sales volumes, with revenue expected to increase in the third quarter
- Improved income from mine operations and reduced general and administrative expenses
- Positive cash provided by operating activities, but challenges with senior secured loan and royalty financing
- Implemented strategies to optimize working capital and reduce inventory
Northern Graphite is committed to its goal of becoming a vertically integrated, mine-to-market supplier of battery anode material. The Company’s projects in Canada and Namibia are strategically positioned to meet the growing demand for graphite in the EV and battery markets. By leveraging its high-quality graphite resources, Northern aims to play a vital role in the transition to green energy and emerging battery technologies.
For more information, visit the Company’s website or contact (613) 271-2124.
Cautionary Note Regarding Non-IFRS Performance Measures
This news release includes certain non-IFRS performance measures that do not have a standardized meaning prescribed by International Financial Reporting Standards. While these measures provide additional insights into the Company’s performance, they should not be considered in isolation from IFRS measures.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements based on management’s assumptions and analyses. Actual results may differ due to various factors, including changes in laws, market conditions, and unforeseen operational challenges.
