Novonix [ASX:NVX] Shares Dip As Cash Burn Mounts

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Lithium battery tech stock Novonix [ASX:NVX] recorded $43.8 million in operating cash outflows for the year ending June 2022 on cash receipts of $9 million.

NVX shares were down 3.5% in late afternoon trade on Wednesday.

NVX, one of the top performing stocks last year, is down 75% year to date.

ASX:NVX novonix share prices chart


Novonix continues to burn cash

On Wednesday, Novonix shared its results for the quarter ended 30 June 2022.

Customer receipts for the quarter came in at $2.6 million and $9 million for the 12 months to June 2022.

The customer receipts were dwarfed by operating expenses.

During the June quarter, NVX spent $4.5 million on staff costs and $2 million on research and development.

In total, the lithium tech stock ended the quarter with operating cash outflows of $7.9 million and $43.8 million for the 12 months ending June 2022.

During the quarter, NVX spent $11.5 million on property, plant, and equipment.

For the 12 months ending June 2022, Novonix spent $147.3 million on investing activities.

NVX ended the period with $207 million in cash and cash equivalents, after raising more than $200 million from equity raises during the financial year.

Number crunching aside, the company wished to highlight recent success in its product development, having delivered a ‘first-of-its-kind, custom-designed microgrid battery prototype’ in partnership with Emera technologies, as announced on 6 June.

Novonix also reiterated results presented by the end of June for a Life Cycle Assessment (LCA) conducted by Minviro; the company’s GX-23 synthetic anode graphite displaying the capability to decrease global warming by 60% in comparison with conventional anode grades.

The company is also currently investigating ways to develop its high-grade graphite deposit at Mt Dromedary in Northern Queensland.

The tech developer reported its completion of furnace and mill installations can now support mass production of anode materials, sampling, and qualification at Corporate Place.

Major building and utility works have also been upgraded at the company’s Riverside facility, with trials of its first Gen3 furnace system deemed successful and additional equipment to come from KORE Power.

The great EV battery tech race heats up

EV sales are rising.

Automakers like Ford are ramping up their EV production.

And governments are pushing for decarbonisation the world over.

Yet the speed in which automakers and governments are pivoting to EVs is leading to a supply crunch.

As automakers worldwide overhaul their fleets to electric, they must secure more battery tech materials.

And that’s putting a fire under the prices for key materials like; lithium, graphite, copper, nickel, and cobalt.

Our energy expert Selva Freigedo thinks the industry is set for a supply crunch, leaving the prices for battery tech materials elevated in the medium-term.

Selva has recently profiled the three key metals at the forefront of the EV revolution.

To read her report, ‘Three Ways to Play the Great EV Battery Race’, click here.


Kiryll Prakapenka

About Kiryll Prakapenka

Kiryll Prakapenka is a research analyst focusing on investigating the biggest trends in investments. Kiryll brings sound analytical skills to his work, courtesy of his Philosophy degree from the University of Melbourne. A student of legendary investors and their strategies, Kiryll likes to synthesise macroeconomic narratives with a keen understanding…

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