Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q2 2024 Earnings Presentation
33 slides from Novagold Resources's earnings presentation, Jun 27, 2024
Slide 1: 2024 Second Quarter Financial Results
2024 SECOND QUARTER FINANCIAL RESULTS June 27, 2024 TSX, NYSE AMERICAN: NG | NOVAGOLD.COM
Slide 2: 2024 Second Quarter Webcast & Conference Call Agenda
Introduction Mélanie Hennessey Vice President, Corporate Communications 2024 SECOND QUARTER Second Quarter Update WEBCAST & CONFERENCE Greg Lang CALL AGENDA President & Chief Executive Officer Second Quarter Financials David Ottewell Vice President & Chief Financial Officer Generational asset with s
Slide 3: Cautionary Statements Regarding Forward-Looking Statements
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS Forward-looking statements contained in this presentation are based on a number of material assumptions, including but not limited to the following, This presentation includes certain “forward-looking information” and “forward-looking statem
Slide 4: Why NOVAGOLD?
WHY NOVAGOLD? Greg Lang President & Chief Executive Officer 4 NOVAGOLD | 2024 Second Quarter Financial Results & Project Update
Slide 5: Donlin Gold is one of the most attractive Tier 1 gold development assets
DONLIN GOLD DONLIN GOLD IS ONE OF THE MOST ATTRACTIVE TIER 1 GOLD DEVELOPMENT ASSETS IN THE WORLD TODAY1… And is simply unique in the North American gold space in its rare combination of key attributes: 1 Production Profile Potential to produce 1.1Moz ounces per annum at second quartile cash cost ov
Slide 6: Project History
DONLIN GOLD PROJECT HISTORY 1909 1971-1972 1995 2001 2006-2007 2011-2012 • Placer gold • Alaska Native Claims • Calista and The • Donlin Creek Joint • Barrick acquires • Second Feasibility discovered at Snow Settlement Act Kuskokwim Venture, between Placer Dome Study completed Gulch • Calista Corpor
Slide 7: Alaska Native Corporation Partnerships Elevate the Project
A GENERATIONAL DONLIN GOLD OPPORTUNITY ALASKA NATIVE CORPORATION Donlin Gold is located on private land owned by Native Corporations, which was designated by law PARTNERSHIPS ELEVATE THE for mining activities five decades ago PROJECT Calista Corporation: The Kuskokwim Corporation: ▪ Calista board se
Slide 8: Alaska: World-Leading Mining Jurisdiction
DONLIN GOLD ALASKA: WORLD-LEADING MINING JURISDICTION ▪ 2nd largest gold-producing state in the U.S.1 ▪ $4.5B value of non-fuel mineral production in Alaska (6th highest in U.S.)2 ▪ 11,400 total direct and indirect jobs attributed to Alaska mining industry3 ▪ $1.0B in wages for careers in mining3 ▪
Slide 9: Positioned to Become a Million-Ounce Gold Producer
DONLIN GOLD POSITIONED TO BECOME A MILLION-OUNCE GOLD PRODUCER Anticipated to be one of the highest annual gold producers in the Americas Projected annual gold production (millions of ounces) Donlin Gold’s 1.2 1.13 27-year mine life 1.03 1 1.13 Moz/yr1 0.8 0.6 0.42 0.44 0.38 0.4 0.31 0.32 0.27 0.29
Slide 10: Double the Global Average Gold Grade
DONLIN GOLD DOUBLE THE GLOBAL AVERAGE GOLD GRADE Among the world’s highest-grade known open-pit gold deposits 2.24 g/t While global average gold grades are declining, Donlin Gold’s grade 0.95 provides resilience through commodity price cycles g/t Global average grade1 Donlin Gold average grade2 See
Slide 11: Extraordinary Leverage to Gold in a Place Where One Can Keep It
DONLIN GOLD “Gold will emerge as the asset class with the most potential this decade, no matter the EXTRAORDINARY LEVERAGE TO GOLD financial or geopolitical backdrop.” IN A PLACE WHERE ONE CAN KEEP IT – “The Upcoming Gold Bull Market: How High Will Gold Prices Go?” Goehring & Rozencwajg (August 31,
Slide 12: The Next Big Gold Discovery Could Be at Donlin Gold
DONLIN GOLD THE NEXT BIG GOLD DISCOVERY COULD BE AT DONLIN GOLD Significant potential to expand current resource at depth and along strike 8km Far Side Queen Snow Quartz Ophir ACMA Pit Dome Lewis Pit ▪ A total of 39Moz1 (100% basis) have 3km been defined in the ACMA and Lewis pits with approximately
Slide 13: NOVAGOLD's 2023 Sustainability Report
NOVAGOLD NOVAGOLD’S 2023 SUSTAINABILITY REPORT Featuring compliance with Global Reporting Initiative Standards and climate change disclosure To view the full report, visit https://www.novagold.com/sustainability/ 13 NOVAGOLD | 2024 Second Quarter Financial Results & Project Update
Slide 14: 2024 Second Quarter Highlights
2024 SECOND QUARTER HIGHLIGHTS 14 NOVAGOLD | 2024 Second Quarter Financial Results & Project Update
Slide 15: Donlin Gold Second Quarter Activities
DONLIN GOLD Donlin Gold Second Quarter Activities ▪ Advancement of metallurgical test work (pilot plant) to confirm proposed optimizations to the flowsheet ▪ The preliminary design packages for the Dam 2024 SECOND Safety Certification were submitted on June 17, 2024 QUARTER ▪ Progression of regional
Slide 16: 2024 Second Quarter Community Investments & Engagements
DONLIN GOLD 2024 SECOND QUARTER Extensive outreach and engagement activities throughout the Yukon-Kuskokwim region COMMUNITY INVESTMENTS & ENGAGEMENTS Community Investments & Engagement ▪ Finalized an additional Shared Values Statement in the Yukon-Kuskokwim (Y-K) region, increasing the total to 17
Slide 17: Permitting is Largely Complete
DONLIN GOLD Key Federal permits for the project have been PERMITTING IS LARGELY COMPLETE received and State permitting is on-track Federal Permitting Completed State Permitting Completed ✓ Final Environmental Impact Statement (EIS)1 ✓ Air Quality Joint Record of Decision (ROD) by the U.S. Army ✓ Ala
Slide 18: Current Activities
DONLIN GOLD Providing support in permitting process and efficient issuance of remaining State-level permits and defending Federal and State permits in litigation CURRENT ACTIVITIES State permitting and litigation activities Federal litigation activities and bipartisan outreach campaign ▪ The Alaska
Slide 19: 2024 Second Quarter Financial Results
2024 SECOND QUARTER FINANCIAL RESULTS David Ottewell Vice President & Chief Financial Officer 19 NOVAGOLD | 2024 Second Quarter Financial Results & Project Update
Slide 20: Q2 2024 Operating Performance
NOVAGOLD Q2 2024 OPERATING PERFORMANCE Three months ended May 31, Six months ended May 31, (US$ millions) 2024 2023 2024 2023 General and administrative1 $7.6 $5.6 $13.8 $11.2 Equity loss – Donlin Gold 4.0 7.5 7.0 12.0 Operating loss 11.6 13.1 20.8 23.2 Interest expense on promissory note 3.7 3.2 7.
Slide 21: Q2 2024 Cash Flow
NOVAGOLD Q2 2024 CASH FLOW Three months ended May 31, Six months ended May 31, (US$ millions) 2024 2023 2024 2023 General and administrative1 $(5.2) $(3.4) $(9.0) $(6.8) Donlin Gold funding (3.7) (7.0) (7.3) (12.8) Working capital, interest and other 4.0 3.2 3.1 2.7 Change in cash and term deposits
Slide 22: Maintaining a Strong Treasury
MAINTAINING A STRONG TREASURY Cash and term deposits balance on May 31, 20241 Treasury $112.6M $0 $50 $100 $150 US$ (millions) Actual Forecast 2024 Spending (millions) Year-to-date Full year Corporate G&A2 $9.0 $16.9 Donlin Gold project expenditures 7.3 14.3 Total $16.3 $31.2 See endnotes for this s
Slide 23: 2024 Activities & Upcoming Catalysts
NOVAGOLD ▪ NOVAGOLD remains committed to commencing a full bankable Feasibility Study to optimally position the Donlin Gold project for the benefit of all stakeholders and shareholders 2024 ▪ Anticipated Donlin Gold expenditures for 2024 include: – Mine planning work ACTIVITIES & – Metallurgical tes
Slide 24: Strong Institutional Shareholder and Management Support
NOVAGOLD STRONG INSTITUTIONAL SHAREHOLDER AND MANAGEMENT SUPPORT The 10 largest shareholders represent almost 70% of shares issued and outstanding1. The Company’s Named Executive Officers collectively held 3.1M2 NG shares as of March 31, 2024 34.4% 65.6% TOP 10 SHAREHOLDERS ALL OTHER SHAREHOLDERS $
Slide 25: Appendix
APPENDIX 25 NOVAGOLD | 2024 Second Quarter Financial Results & Project Update
Slide 26: Mineral Reserves
APPENDIX MINERAL RESERVES Attributable to Donlin Gold Tonnage Grade Metal content NOVAGOLD *Mineral reserves and mineral resources are GOLD kt g/t Au koz Au koz Au reported on a 100% basis and on a 50% basis. Reserves1 NOVAGOLD and Barrick each own 50% of the Donlin Gold project. Proven 7,683 2.32 5
Slide 27: Mineral Resources
APPENDIX MINERAL RESOURCES Attributable to Donlin Gold Tonnage Grade Metal content NOVAGOLD *Mineral reserves and mineral resources are GOLD kt g/t Au koz Au koz Au reported on a 100% basis and on a 50% Resources2, exclusive of Reserves basis. NOVAGOLD and Barrick each own 50% of the Donlin Gold pro
Slide 28: Donlin Gold
APPENDIX DONLIN GOLD Key financial economic & production data LOM operating costs Initial capital costs $7.4B Area $/t Processed $/t Mined $/oz Au Sustaining capital costs over LOM (27 years) $1.7B Mine operations 16.70 2.59 278 Average annual gold production Processing operations 13.70 2.12 228 LOM
Slide 29: Management
APPENDIX MANAGEMENT Greg Lang ▪ Former President of Barrick Gold North America Mélanie Hennessey ▪ 20 years of experience in financial markets, President ▪ 40+ years of experience building & operating VP, Corporate corporate governance, indigenous relations, & CEO major open-pit and underground mine
Slide 30: Board of Directors
APPENDIX BOARD OF DIRECTORS Dr. Thomas ▪ Chairman and CEO of The Electrum Group LLC, a privately held natural resources investment management company Kaplan that controls a diversified portfolio of precious and base Hume Kyle ▪ Former Executive VP and CFO of Dundee Precious Metals Chairman metals as
Slide 31: Endnotes
APPENDIX ENDNOTES SLIDE 5 – Donlin Gold is one of the most attractive tier 1 gold development story in the world today… SLIDE 11 – Extraordinary leverage to gold in a place where one can keep it 1. NOVAGOLD defines a Tier One gold development project as one with a projected production life of at lea
Slide 32: Endnotes
APPENDIX ENDNOTES SLIDE 24 – Strong institutional shareholder and management support marketing (selling costs) of $1.85/oz recovered; stockpile rehandle costs of $0.20/t processed assuming that 45% of mill feed is rehandled; variable royalty rate, based on royalty of 4.5% * (Au price – selling cost)
Slide 33: NOVAGOLD Resources Inc. Contact
NOVAGOLD RESOURCES INC. Mélanie Hennessey Suite 1860 – 400 Burrard Street VP, Corporate Communications Vancouver BC Canada V6C melanie.hennessey@novagold.com 3A6 T: 604 669 6227 TF: 1 866 669 6227 Frank Gagnon F: 604 669 6272 Manager, Investor Relations E: info@novagold.com frank.gagnon@novagold.com