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Nouveau Monde Provides A Whole New World Of Opportunities

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Pale Horse Trading


  • Nouveau Monde is a developmental graphite miner in Quebec.
  • The company recently completed a proactive reverse split.
  • Next up is a listing on the NYSE that will create excellent new opportunities for traders.
  • As the demand for graphite increases, the company is poised to fill a crucial role in the global supply chain.

This article was written by

Pale Horse Trading profile picture
Individual investor with more than 12 years experience in the market, including seven years in biotechs, looking for well-managed companies with potential for large growth. High risk tolerance.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in NMGRD over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (13)

added some stock and covered calls today. Averaging down. We will see.
A. Paul Gill profile picture
For every pound of lithium, most batteries need 10 to 15 pounds of graphtie - there are over 200 lbs of graphite in a Tesla 3. Please have a look at Lomiko $LMRMF as well - coming out of the woodwork and much more comparable to $WWR ($3.83) and $NMG ($7.00) now seekingalpha.com/...
Guy Hooper profile picture
@A. Paul Gill Keep seeing battery materials forecasts that show anode quality graphite (spherical/coated) in deficits supply by 2023 or even earlier. My filters for graphite:
1. Not in Africa, S. America, China (supply chain risks)
2. ESG, or demonstrated/documented green mining process
3. Quality of resource
4. Financing
NMG ticks boxes for me. Not smart on LMR or WWR. Will look into it.

Any commodity that goes into deficit sees great price leverage. If the forecasts are right, then pricing should be better than currently expected.

Weakness in my thesis: if another metal is more in deficit than anode graphite, then graphite pricing will be merely ok to very good.

Like Talga and Novonix for similar reasons.
A. Paul Gill profile picture
@Guy Hooper Thanks - I think you have the right criteria. Here is an analyst report on our project that mentions $NMG www.lomiko.com/...
Guy Hooper profile picture
@A. Paul Gill Thanks, will read it.

Novonix popped today. Has a strategic component now. Although I am somewhat cynical about the rationale for NVNXF as it uses coke as an input material, there has never been a doubt in my mind that the Conoco Phillips relationship was extremely interesting. Add to the CP piece, is the Admiral on the BOD at NVN, I had an idea that the company was viewed favorably by powerful groups (DOD, Oil). Biden’s mineral plan mentioned synthetic graphite, and I joked over on the NVNXF thread that it was written by big oil (here, too, I think). Maybe I was right. Tonight I will try to find time to review NVNXF, but the $150m in capital for 16% stake means that NVNXF can scale its operations. I think that NVNXF is going much higher.
Guy Hooper profile picture
Been in NMG for about a year. There is a video on youtube on the RockStock channel with the director of Pallinghurst. It discusses the Nemaska (Lithium play) with Livent as a minority partner and NMGRD in which they have a 51% (?) position. The NMG upside story to me is simple: 1. Get away from China supply chain reliance, 2. There is a shortage of battery grade anode graphite coming as production of BEVs scales, 3. the industrial base is focused on Li ion batteries for cars, so there is factory lock in, 4. Management at NMG appears honest and solid. 5. Referring to the video, Pallinghurst is smart money and you are riding along with it.

One should also check out Talga for the same type of play in Europe. Talga has a deeper technology side and are a vertically integrated tech materials company, not a mining company (in my opinion).

For synthetic graphite and a secondary play on a REALLY GREAT TECH TEAM, Novonix (NVNXF) is an interesting play. In my ratings, I have them 3d after NMGRD and TLGRF but they have been the star performer. Gritting my teeth and holding through 2025 because they have a lot of upside option. In my view, the worst thing that happens to them is these companies get scooped up by bigger players.

None of these stocks are priced high relative to their annual earnings once they hit full rate production. All of them have other upsides that are essentially free or underpriced as of Apr 18, 2021. We'll see how my comment ages!
Pale Horse Trading profile picture
@Guy Hooper Thanks for posting. Will check out those names.
Guy Hooper profile picture
@Pale Horse Trading Thanks for writing the article. Glad to see coverage.
Pale Horse Trading profile picture
@Guy Hooper Happy to do it. I like the company and have bought some shares, expecting the NYSE listing in early May.
Long and appreciate your points on this security.
Pale Horse Trading profile picture
@AndreP Could be turbulent while waiting for the price to settle down after the split and before the NYSE listing. I Iike their model, though.
Nice article, thank you. My confidence in the company was also strengthened recently by the addition of industry expert Dr. Jürgen Köhler, formerly CEO of SGL Carbon, to their Board.
Pale Horse Trading profile picture
@Uli W Yes, that's a good point. They have some great industry expertise on the team. I anticipate the next year or two will be quite interesting.
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