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Nouveau Monde Graphite Inc.NYSE:NMG Stock Report

Market Cap US$326.7m
Share Price
US$2.15
US$3.41
37.0% undervalued intrinsic discount
1Y23.6%
7D1.4%
Portfolio Value
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Nouveau Monde Graphite Inc.

NYSE:NMG Stock Report

Market Cap: US$326.7m

Nouveau Monde Graphite (NMG) Stock Overview

Engages in the acquisition, exploration, development, and evaluation of mineral properties in Quebec, Canada. More details

NMG fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

Risk Analysis

Earnings have declined by 24.7% per year over past 5 years

Makes less than USD$1m in revenue (CA$0)

Volatile share price over the past 3 months compared to the US market


NMG Community Fair Values

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Materials opportunity
UG logo
Upside Gold
Fair Value from
CA$5.0768.4% undervalued intrinsic discount

An Undervalued 3.3Moz Gold Project in Canada

Key takeaways Upside Gold is developing the Kena Gold Project, near the town of Nelson in the Kootenays region of southern British Columbia. Kena hosts a historical gold resource of 3.33 million ounces (561,000 ounces Indicated and 2.77 million ounces Inferred) across a 10,200-hectare land package.

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Nouveau Monde Graphite Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Nouveau Monde Graphite
Historical stock prices
Current Share PriceCA$2.15
52 Week HighCA$6.06
52 Week LowCA$1.60
Beta0.90
1 Month Change-4.87%
3 Month Change8.59%
1 Year Change23.56%
3 Year Change-43.27%
5 Year Change-80.61%
Change since IPO35.39%

Recent News & Updates

Recent updates

Seeking Alpha • Apr 01

Nouveau Monde Graphite Updates: Market Mostly Unimpressed

Summary Current battery chemistries rely on graphite, but the existence of synthetic alternatives and abundant natural supplies cap price increases for mined graphite. Nouveau Monde Graphite's recent announcement of their updated plan and feasibility study did not excite the market, reflecting limited enthusiasm for the project. The project's financials suggest insufficient returns relative to the risks of mining, making it an unattractive investment compared to other opportunities. Despite potential demand growth, the risks and capped returns of graphite mining make it a less compelling investment choice. Read the full article on Seeking Alpha
Seeking Alpha • Oct 23

Nouveau Monde Rallies On China's Graphite Export Curbs

Summary China strengthens control over graphite exports, a key mineral in electric vehicle production, as part of its ongoing trade war with the US. Nouveau Monde Graphite, a North American miner, experiences a stock rally on the news. The move by China could lead to strategic agreements and investments in Nouveau Monde, positioning the company to benefit from the growing demand for graphite in the EV sector. Read the full article on Seeking Alpha
Seeking Alpha • Dec 13

Nouveau Monde Graphite's Debt Holds It Back

Summary Nouveau Monde’s Matawinie Graphite Mine will have a reserve of 61.7 Mt at 4.23% when built. The Feasibility Study is done and construction of the mine and processing plant will soon begin. But a previous royalty deal and the addition of more debt may hurt share price performance. Note: Unless otherwise stated, all references to dollars ($) are to the Canadian currency Nouveau Monde Graphite Inc. (NMG) is a junior Canadian developer focused on building its Matawinie Graphite mine in the province of Quebec. The project will also see the simultaneous construction of a graphite conversion facility that will produce battery anode material. This past August, the company filed a feasibility study and is about ready to begin construction on both facilities. But while the NPV and IRR look promising, NMG recently issued convertible debt to shore up its balance sheet. The cash that it received is well short of what is needed to complete construction of the project and may only carry the company another year. This added layer of leverage complicates NMG’s capital structure and creates questions about its future financing options; the fact that management previously exchanged debt for perpetual royalty payments also serves to reinforce those questions. This article will discuss NMG’s development and its financing. The Graphite Market While graphite has many uses, what interests investors most is probably its use in batteries for electric vehicles and utility-scale power storage. Growth in these industries continues to drive battery metal demand to new heights, and that’s a trend that looks set to last for decades to come. In fact, some forecasts predict that later this decade the graphite deficit will be greater than the deficit for either lithium or nickel. benchmarkminerals.com NMG believes that once its project is operational, it will provide investors with several distinct advantages aside from obvious exposure to changes in the price of graphite. Matawinie is the only major North American graphite discovery since 2001, and it was luckily discovered in the mining-friendly jurisdiction of Quebec. Once complete, NMG says that Matawinie will be the largest graphite mine in the “Western World”. And what they mean by that is that the mine will be the largest outside of China. As can be seen in the graph below, China currently has a dominant position in the production of mined graphite and it has a complete monopoly in the refining of spherical graphite, the type of graphite that NMG hopes to eventually produce. NMG’s operations will reduce China’s advantage in the production of mined graphite and break its monopoly in the refining of spherical graphite. China's Share of Battery Metal Supply Chain (benchmarkminerals.com) Given the current geopolitical climate, this factor can be very advantageous for Nouveau Monde, especially when it comes to raising capital. However, the company has not yet been able to leverage its status as an emerging North American-based graphite miner to extract serious amounts of government financing. Company Backgrounder NMG has a property in Northern Quebec which it may develop in the distant future, but the company’s current focus is on the aforementioned two-part project made up of the Matawinie mine and a battery material plant. The mine’s property, which measures 8,266 hectares, has a resource size of 130.3 Mt graded at 4.26% while the reserve is 61.7 Mt at 4.23%. After production gets started and is fully ramped up, Matawinie could produce 103 ktpa of high-purity flake concentrate over the next 25 years. But the large resource size provides a lot of room for expansion. The battery material plant will be located in the nearby town of Bécancour which lies on the shores of the Saint Lawrence River, giving Nouveau Monde access to a port. The facility will take in 64 ktpa of graphite concentrate and output 43 ktpa of anode material and other specialty products. The balance of Matawinie’s concentrate output will be sold on the open market. The integrated project has an after-tax NPV8 of $1.6 billion and an after-tax IRR of 21%. The project will have an annual Opex cost of $195 million and CapEx is estimated to come in at $1.4 billion. Since 2017, NMG has been “de-risking” the project through the construction of a demonstration facility capable of producing 2 ktpa of anode material. The timeline is somewhat vague, but the exhibit below seems to indicate that construction of the project should be completed within the next 2-3 years and production should be fully ramped by Q4 of 2025. Investor Presentation Capital Structure In June of this year, NMG put out a press release in which it discussed having received formal Expressions of Interest from Canadian and German Export Credit Agencies that would potentially provide it with up to 70% of the total funding needed for the construction of both the mine and processing facility. It stated that the, “medium-term project finance is expected to deliver a significantly lower cost of capital than traditional financing structures.” Needless to say, this would be a tremendous advantage for the company and would greatly reduce the need for potentially dilutive equity issuances and debt offerings. Unfortunately, not much else has been heard about agency funding since the press release was issued six months ago. Dilutive offerings are an issue of which potential shareholders should be cognizant. That’s because while NMG has been “derisking” at the operational level, it has simultaneously been increasing the risk inherent in its capital structure. Like almost all pre-production junior miners, NMG is frequently low on cash. This is not a problem in and of itself as by definition pre-production miners produce no revenue but have numerous expenses. But it does force potential investors to keep a close eye on how the company finances its development. In August of 2020, NMG announced it had entered into a royalty purchase agreement with Pallinghurst Graphite Limited, one of the company’s major shareholders. In essence, the deal will require NMG to pay Pallinghurst a royalty equal to 3% of Matawinie’s revenue in perpetuity. NMG does have the right to buy-back a third of the royalty for about $1.3 million, but that right will expire on August 28, 2023 and management has so far signaled no intention of exercising that option. The royalty was entered into in exchange for the cancellation of about $5 million of debt; however, that same deal also saw NMG receive $15 million from Pallinghurst in exchange for a secured convertible bond. That bond would later be converted to equity.

Shareholder Returns

NMGUS Metals and MiningUS Market
7D1.4%7.3%3.2%
1Y23.6%95.3%31.0%

Return vs Industry: NMG underperformed the US Metals and Mining industry which returned 82.1% over the past year.

Return vs Market: NMG underperformed the US Market which returned 29.8% over the past year.

Price Volatility

Is NMG's price volatile compared to industry and market?
NMG volatility
NMG Average Weekly Movement11.1%
Metals and Mining Industry Average Movement10.2%
Market Average Movement7.1%
10% most volatile stocks in US Market16.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: NMG's share price has been volatile over the past 3 months compared to the US market.

Volatility Over Time: NMG's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
2012113Eric Desaulniersnmg.com

Nouveau Monde Graphite Inc. engages in the acquisition, exploration, development, and evaluation of mineral properties in Quebec, Canada. It primarily explores for graphite. The company’s flagship property is the 100% owned Matawinie graphite property including 176 mining claims covering an area of 9,264 hectares located in Quebec.

Nouveau Monde Graphite Inc. Fundamentals Summary

How do Nouveau Monde Graphite's earnings and revenue compare to its market cap?
NMG fundamental statistics
Market capUS$326.71m
Earnings (TTM)-US$77.13m
Revenue (TTM)n/a
0.0x
P/S Ratio
-4.5x
P/E Ratio

Is NMG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
NMG income statement (TTM)
RevenueCA$0
Cost of RevenueCA$25.66m
Gross Profit-CA$25.66m
Other ExpensesCA$79.52m
Earnings-CA$105.18m

Last Reported Earnings

Dec 31, 2025

Next Earnings Date

n/a

Earnings per share (EPS)-0.65
Gross Margin0.00%
Net Profit Margin0.00%
Debt/Equity Ratio22.2%

How did NMG perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/06 15:31
End of Day Share Price 2026/05/06 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Nouveau Monde Graphite Inc. is covered by 9 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Robin FiedlerBMO Capital Markets Equity Research
Raj RayBMO Capital Markets Equity Research
Lucas PipesB. Riley Securities, Inc.