Topic: How To Invest

Q: Hi, Pat. What do you think of this company Nouveau Monde Graphite, symbol: NOU? Thanks.

Article Excerpt

A: Nouveau Monde Graphite Inc., $4.36, symbol NOU on Toronto (Shares outstanding: 55.6 million; Market cap: $263.7 million; www.nmg.com), has two main development projects: its proposed Matawinie graphite mine, and its Becancour battery material plant. Both are located within 150 kilometres of Montreal. Nouveau Monde believes that the Matawinie deposit is capable of supporting a mine producing 100,000 tonnes of high-purity graphite flake per year. It also believes that the Becancour plant will boost the value of the mine’s graphite by processing it into a much higher-value product. Graphite is one of two naturally occurring crystalline forms of carbon (the other is diamond). Graphite is a soft, greyish-black mineral with a metallic sheen. A graphite crystal is made up of loosely stacked one-atom-thick layers, much like a deck of cards. These layers can slide around, which makes graphite a good lubricant. Graphite is also an excellent conductor of heat and electricity. It is relatively inert, being unaffected by most chemicals, and maintains its…