New World Graphite (TSXV: NOU; NYSE: NMG) has released an integrated feasibility study for its Matawinie mining project and Becancour a battery materials plant, both in Quebec, which reported higher capital expenditures than BMO analysts expected.

The projects are located within a radius of 150 km from Montreal.

According to the latest study, the Matawinie mining project should produce an average of 103,328 tons of graphite concentrate annually over 25 years, with initial investments of $481 million. At a discount rate of 8%, Matawinie would generate an after-tax net present value (NPV) of $571 million and an after-tax internal rate of return (IRR) of 22.2%.

The Bécancour Battery Materials Plant is expected to produce 42,616 tonnes of anode material, 3,007 tonnes of purified jumbo flakes and 18,384 tonnes of fine flake by-products on average each year. The plant’s initial capital is expected to be approximately $923 million. At a discount rate of 8%, the project would generate an after-tax NPV of $1.01 billion and an after-tax IRR of 20.4%

“Market trends have accelerated over the past few months and as inflation and logistical turbulence present a more challenging environment, we have demonstrated our graphite expertise, advanced manufacturing capability and complex project management skills. to execute our vision,” said Arne H Frandsen, company president. in a press release.