Powering down: Novonix share price slumps following quarterly results

Novonix rejoiced on news of its synthetic graphite and energy storage initiatives last quarter.

Key points
  • The Novonix share price sank 4.45% on Wednesday's open to trade at $2.36
  • Its movements came on the back of the company's activities and cash flow for the June quarter
  • The company's customer receipts lifted to $2.5 million while its operating cash flow for the period came to a $7.9 million outflow

The Novonix Ltd (ASX: NVX) share price is in the red this morning following the release of the company's report for the quarter ended 30 June.

After sinking 4.45% shortly after the opening bell, the tech stock is now trading at $2.39, down 3.24%.

A young woman slumped in her chair while looking at her laptop.

Image source: Getty Images

Novonix share price dips on quarter results

Here's how the June quarter went for the S&P/ASX 200 Index (ASX: XJO) battery technology and materials company:

  • $2.5 million of receipts from customers
  • Operating cash flow came to a $7.9 million loss
  • Cash flow from investing activities came to a $9.2 million outflow
  • Ended the quarter with $207 million of cash in the bank

The company's customer receipts increased 25% over the three months ended June compared to those of the prior corresponding quarter.

Meanwhile, its operating cash outflow deepened from a near-$1 million loss in the June 2021 quarter. Though, it was an improvement on the March quarter's $22.6 million outflow.

What else happened in the June quarter?

The Novonix share price tumbled a whopping 63% last quarter as tech stocks bore the brunt of the market's suffering.  

That's despite news that Novonix's GX-23 synthetic anode graphite can provide an approximate 60% decrease in global warming potential and reduce battery carbon emissions by 67% compared to certain conventional anode grade synthetic graphite.

Additionally, the company, in partnership with Emera Technologies, announced the delivery of a first-of-its-kind microgrid battery prototype while its battery technology solutions business achieved its targeted growth in hardware sales and service revenue.

What's next?

Novonix didn't provide any new earnings guidance today. But it did outline some of its upcoming activities.

The company continues investigating opportunities to develop Queensland's Mount Dromedary high-grade graphite deposit.

It's also in the final stages of selecting a site for its next production facility. It's in capacity planning talks with manufacturers, including Samsung and Sanyo, for the next facility.  

Finally, Novonix aims to complete a 10-tonne per year pilot line for its cathode synthesis technology activities by December.

Novonix share price snapshot

The Novonix share price has monumentally underperformed its home sector so far this year, more than doubling its fall.

The battery technology and materials stock has plummeted 74% since the start of 2022. Meanwhile, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has tumbled 30%.

However, Novonix's stock has slumped just 8% over the last 12 months compared to the tech sector's 27% stumble.

Motley Fool contributor Brooke Cooper 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 Scott Phillips.

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