Novonix (ASX:NVX) share price jumps as net assets, cash earnings spike

Shares in Novonix are on the move after the company released its half-year results.

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Key points

  • Novonix released its half-yearly results today
  • The company achieved a number of milestones, although net loss after tax widened from the same time last year 
  • In the last 12 months, the Novonix share price has gained more than 52% but is down 45% this year to date

The Novonix Limited (ASX: NVX) share price is on the move today after the company released its interim report and financial results for the half-year ended 31 December 2021.

At the time of writing, the Novonix share price is charging 4.77% higher at $5.05.

It comes after Novonix announced on Thursday it would be ringing the closing bell to mark the successful completion of its NASDAQ listing.

Novonix share price spikes amid earnings growth

The Novonix share price is rising on the back of the battery technology and materials company's H1 FY22 results. Key takeouts include:

  • Revenue from contracts with customers of $4 million, up from $2.325 million the same time last year
  • Net assets of $374.05 million at 31 December 2021, well up from $136.7 million a year ago
  • Reported statutory after-tax loss for the half-year of $28.8 million, more than the loss of $10.77 million in H1 FY20
  • Added to the constituents of the S&P/ASX 300 Index in September 2021
  • Loss on earnings per share (EPS) of 6.5 cents
  • Cash and cash equivalents of $259.5 million at end of period compared to $25.3 million at the same time last year
  • Commenced trading on the NASDAQ stock market in the US in February 2022

What else happened this period for Novonix?

Back in July 2021, Professor Jeff Dahn joined as chief scientific advisor to the company, and the company also announced it had finalised the purchase of a 400,000 square-foot facility in Tennessee.

Novonix says this site is "planned to be the site for expansion to at least 10,000 tonnes per year of production capacity".

The facility's opening was celebrated in December and was attended by the US Secretary of Energy, Jennifer M. Granholm, the company said.

In the following month, Novonix advised that US-listed Phillips 66 (NYSE: PSX) invested a 16% stake in the company in a vote of confidence.

Novonix notes Phillips' move will help on "advancing [its] production of synthetic graphite for high-performance lithium-ion batteries".

To cap out the half, the company announced some exciting preliminary results from an assessment of its Anode Material's GX-23 synthetic graphite product. The data showed the product "offers an approximate 60% decrease in CO2 emissions in a lifecycle assessment".

Since rolling into the new year, positive momentum has continued for Novonix. The company signed another agreement with Phillips 66 in January, developing technology that will "advance the production and commercialisation of anode materials for lithium-ion batteries".

Finally, the company successfully completed the listing of its American Depositary Receipts (ADRs) on the American NASDAQ stock exchange this month.

What's next for Novonix?

With respect to its cathode minerals division, Novonix is working to meet key testing milestones over the next 12-18 months.

It is doing so while pushing through the next phase of pilot-scale with "a 10 tonnes per annum capable demonstration line coming online in 2022".

At Mount Dromedary, the "high grade (18%+) natural graphite deposit located in Australia", Novonix says management is conducting a strategic review of the graphite deposit asset.

Novonix also entered into a Securities Purchase Agreement and a Supply Agreement with KORE Power on 31 January 2022. There it purchased 3.33 million shares in KORE Power for US$25 million, representing an approximate 5% stake, for 50% cash and 50% by issuing 1,924,723 shares.

No specific earnings guidance was provided by Novonix in its earnings report today.

Novonix share price snapshot

In the last 12 months, the Novonix share price has gained more than 52%. However, it is down more than 45% this year to date. During the past month of trading, shares have collapsed another 39%, and Novonix is thus trailing the broad indexes this year.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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