Northern Graphite Announces First Half Results

In This Article:

Positive Income from Mine Operations Recorded During the First Two Months of Production

Ottawa, Ontario--(Newsfile Corp. - August 30, 2022) - Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG) (the "Company" or "Northern") is very pleased to announce that the Company's Interim Financial Statements and Management's Discussion and Analysis for the three and six month periods ended June 30, 2022 have been filed on SEDAR and are available under the Company's profile. Selected unaudited financial information is presented in the table herein. Highlights for the second quarter which only include two months of operation at the Lac des Iles graphite mine ("LDI") following its acquisition at the end of April 2022 include:

  • 38,500 tonnes of ore and low grade stockpile with an average grade of 6.6% processed in May and June

  • 2,523 tonnes of graphite concentrate produced with a recovery of 89.7%

  • Concentrate purity averaged 96% and flake size distribution was 37% +80 mesh, 19% -80 by +150 mesh and 44% -150 mesh

  • Revenue of $3.7 million generated based on 1,773 tonnes sold at an average price of $2,083/tonne (USD$1,623/tonne)

  • Cash costs were $1,276 (USD$994) per tonne of graphite concentrate

  • Income from mine operations was $1.3 million

  • An operating loss of $1.5 million was recorded which includes general & administrative expenses and project evaluation, acquisition and integration costs

  • Cash and restricted cash and equivalents of $17.7 million as at June 30, 2022

  • Working capital of $29.4 million as at June 30, 2022

  • Total assets of $105.7 million as at June 30, 2022

"Release of our second quarter results is another important milestone in Northern's transformation from a development stage company to a producer with revenues, a positive mine operating profit and a strong cash position," commented Hugues Jacquemin, CEO. "Becoming the only significant producer of graphite in North America is a good start and we intend to aggressively build on that position through continued production growth, acquisitions and downstream investments."

Operations Report
The Lac des Iles mine and processing plant essentially operated at design capacity during May and June based on a five day per week schedule. Throughput, grade, recovery and concentrate quality were all within historical norms. Costs reflected a higher than usual strip ratio as mining nears the bottom of the pit. The strip ratio should decline as mining of the next level begins. Some stoppages were experienced for maintenance and repairs subsequent to the end of the quarter.