Battery tech developer Novonix [ASX:NVX] recorded $2.8 million in customer receipts in the September quarter as operating cash outflows hit $13.8 million.
Novonix saw its cash balance dwindle by $33 million to $181.8 million at the end of the quarter.
Clearly, the recent selection for a US Department of Energy (DoE) grant comes at a great time.
NVX shares were down 5% late on Friday.
Source: tradingview.com
Novonix DoE grant
On Friday, Novonix summarized its activities and cash flows for the past three months to September 2022.
The quarter was bookended by the news that Novonix was selected for a DoE grant.
Novonix, along with ASX-listed Syrah Resources [ASX:SYR] and Piedmont Lithium [ASX:PLL], were beneficiaries of preliminary selection for grants issued by the US Department of Energy funded through the US$2.8 billion from the US Bipartisan Infrastructure Law.
NVX’s wholly-owned subsidiary — Novonix Anode Materials (NAM) — was selected for a US$150 million grant.
Importantly, however, DoE noted that Novonix’s cost share would be US$877 million.
Currently, NAM is constructing a production site in the US that is expected to produce 10,000 metric tonnes of battery-grade synthetic graphite per year.
Novonix continues to burn cash
In the September quarter, Novonix recorded $2.8 million from customer receipts — this was more than offset by its operating expenses.
For instance, staff costs came in at $8.8 million and administrative costs at $3.6 million.
NVX’s net cash outflows from operating activities came in at $13.8 million.
With the $19.2 million cash outflow from investing activities, NVX saw its free cash flow burn reach $33 million for the quarter.
Quarter on quarter, customer receipts rose 7.7%, while operating cash outflows rose 72.5%.
Overlooked ASX lithium stocks and the green future
The International Energy Agency (IEA) states demand for lithium will increase sixfold to 500 kilotonnes by 2030 and will need 50 more mines to cater for the incoming wave.
UBS and Macquarie have also expressed concerns over increasing demand and current production channels not yet forecast to meet demand.
Unsurprisingly, lithium stocks have been the talk of the ASX in 2021, with eight of the top 10 best-performing stocks on the All Ords being in the lithium sector.
Even with the ongoing push, escalating prices, and government support, lithium stocks entered a correction this year.
The easy money has clearly been made.
So, do any overlooked lithium stocks remain on the ASX?
According to our recent Money Morning research report, yes.
Discover three overlooked lithium stocks here.
Regards,
Kiryll Prakapenka,
For Money Morning
