Nouveau Monde Graphite Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand how Nouveau Monde Graphite (NMG) performed this year. My goal is to turn complex filing details into simple information you can use to decide if this company fits your investment goals.

1. What does this company do?

Nouveau Monde Graphite is a Canadian business building the supply chain for the battery revolution. They are vertically integrated, meaning they control the entire process. They mine natural flake graphite at their Matawinie Mine in Quebec and process it into battery-grade material at their Bécancour plant.

This year, the company remained in a heavy "building phase." They are constructing a plant designed to produce 43,000 tonnes of anode material every year. Think of them as a construction company building a massive factory to create the "fuel" for future electric cars.

2. Financial performance

Because NMG is still developing its facilities, it has not yet reached commercial production. Consequently, it reported almost no revenue for the year ending December 31, 2025.

The company’s main financial activity is spending money on construction and operations. They reported a loss of about $68.4 million CAD, mostly from administrative costs and project development. By the end of 2025, they had 160.7 million shares outstanding. This reflects their strategy of issuing shares to raise the capital required to fund these massive projects.

3. Major wins and challenges

The biggest win is the continued support from major industry players. NMG secured $375 million USD in funding from General Motors, Panasonic Energy, and Mitsui & Co. These partners also signed agreements to buy a significant portion of the graphite NMG produces, which serves as a strong vote of confidence in the company’s technology and location.

The challenge is the high cost and complexity of construction. The total cost to build the mine and the plant is roughly $1.4 billion CAD. They must manage multiple sites while navigating rising costs for labor and materials.

4. Financial health

NMG relies on outside funding to keep operating. They have successfully raised money through the Canada Growth Fund and Investissement Québec.

U.S. investors should keep a few things in mind:

• Reporting: As a Canadian company, they use international accounting standards (IFRS), which differ from U.S. rules.
• Mining Standards: They use Canadian "NI 43-101" standards to report their graphite reserves, which differ from U.S. SEC requirements.
• Currency: All figures are in Canadian dollars. Changes in the exchange rate between the U.S. and Canadian dollar can affect their purchasing power and debt value.
• Controls: Management confirms their financial tracking systems are working effectively.

5. Key risks

The biggest risk is "execution." If the plant faces delays or cost overruns, the company may need to raise more money, which could lead to issuing more shares and reducing your ownership percentage. They are also sensitive to electric vehicle demand; if that market slows or battery technology changes, demand for their product could drop. Finally, they face standard mining risks, including fluctuating commodity prices and the need to maintain environmental permits and community support.

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How to use this for your decision: NMG is currently a "pre-revenue" company, meaning you are investing in the potential of their future production rather than their current sales. When deciding if this is right for your portfolio, ask yourself if you are comfortable with the risks of a company still in the construction phase, and whether you believe in the long-term growth of the electric vehicle battery market. If you prefer companies that are already profitable, this may be one to watch from the sidelines until they begin commercial production.