Novagold Resources Inc. · AMEX:NG
Novagold Resources — Shareholder Meeting (May 2024)
35 slides from Novagold Resources's shareholder meeting presentation, May 16, 2024
Slide 1: 2024 Annual General Meeting of Shareholders
2024 ANNUAL GENERAL MEETING OF SHAREHOLDERS May 16, 2024 TSX, NYSE AMERICAN: NG | NOVAGOLD.COM
Slide 2: 2024 Annual General Meeting of Shareholders Agenda
Formal Business David Ottewell Vice President & Chief Financial Officer 2024 ANNUAL GENERAL Company Update MEETING OF Greg Lang President & Chief Executive Officer SHAREHOLDERS AGENDA Gold Commentary & Closing Remarks Dr. Thomas Kaplan Chairman Question & Answer Session Generational asset with stron
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 Annual General Meeting of Shareholders
Slide 5: Donlin Gold is one of the most attractive Tier 1 gold development stories
DONLIN GOLD DONLIN GOLD IS ONE OF THE MOST ATTRACTIVE TIER 1 GOLD DEVELOPMENT STORIES 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 o
Slide 6: Maintaining a Strong Treasury
MAINTAINING A STRONG TREASURY Cash and term deposits balance on February 29, 20241 Treasury $118M $0 $50 $100 $150 US$ (millions) 2024 Forecast Spending Donlin Gold project expenditures $14M Corporate G&A $17M Total $31M See endnotes for this slide in Appendix 6 NOVAGOLD | 2024 Annual General Meetin
Slide 7: Donlin Gold 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 8: 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 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 0.36 0.38 0.4 0.31 0.32 0.27
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 0.96 provides resilience through commodity price cycles g/t Global average grade1 Donlin Gold average grade2 See
Slide 11: 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 12: NOVAGOLD's 2023 Sustainability Report
NOVAGOLD NOVAGOLD’S 2023 SUSTAINABILITY REPORT Featuring GRI alignment and climate change disclosure To view the full report, visit https://www.novagold.com/sustainability/ 12 NOVAGOLD | 2024 Annual General Meeting of Shareholders
Slide 13: 2023 Achievements and Current Activities
2023 ACHIEVEMENTS AND CURRENT ACTIVITIES 13 NOVAGOLD | 2024 Annual General Meeting of Shareholders
Slide 14: 2023 Achievements & Milestones
DONLIN GOLD Extensive outreach and engagement activities 2023 ACHIEVEMENTS & throughout the Yukon-Kuskokwim region MILESTONES Community Investments & Engagement ▪ Provided funding and participated in various health and safety initiatives ▪ In its sixth year, the annual “In It For The Long Haul” wast
Slide 15: 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 16: Timeline & Key Project Milestones
DONLIN GOLD Extensive and thorough work completed upfront to mitigate risks and to responsibly advance one of TIMELINE & KEY PROJECT MILESTONES the industry’s largest and highest quality gold development projects STATE PERMITTING, TRADE-OFF ENGINEERING CONTINUED PERMITTING & UPDATED FEASIBILITY STUD
Slide 17: 2024 Activities & Upcoming Catalysts
NOVAGOLD ▪ The Donlin Gold LLC board approved a budget of $28.5 million (100% basis) for 2024 comprising: – Mine planning work – Metallurgical test work (pilot plant) 2024 – Regional infrastructure support planning – Resource modelling ACTIVITIES & – Geoscience hydrology and closure planning – Advan
Slide 18: NOVAGOLD Launches 2024 Chairman's Interview with Daniela Cambone
NOVAGOLD NOVAGOLD LAUNCHES 2024 CHAIRMAN’S INTERVIEW WITH DANIELA CAMBONE Featuring insights on the macro perspective of 2023 world events, gold equity performance, and NOVAGOLD’s investment proposition View full interview here: https://www.novagold.com/_resources/Novagold-2024-Chairman-Interview.pd
Slide 19: Gold Sector
GOLD SECTOR Dr. Thomas Kaplan Chairman, NOVAGOLD 19 NOVAGOLD | 2024 Annual General Meeting of Shareholders
Slide 20: Gold Is in a Long-Term Bull Market
GOLD GOLD IS IN A LONG-TERM BULL MARKET "The beauty of the gold chart is that we have been in a bull market for more than 20 years. And phase one of that bull market was 12 years when gold went from $350 to $400 to as high as $1,800, which I call phase one. Phase two was a consolidation between $1,1
Slide 21: Supply Decreases as Demand Pressure Increases
GOLD SUPPLY DECREASES AS DEMAND PRESSURE INCREASES Demand drivers Historic Inflation/deflation Central bank safe-haven protection purchasing appeal Currency Emerging market Asset debasement demand diversification Supply pressures Dwindling Cost Decreasing discovery rates Inflation ore grades Inadequ
Slide 22: Central Banks Continue Robust Acquisition of Gold
GOLD “The best sign that we're all right in that respect (people understanding that having a currency that cannot be freely debased is good news) has been the buying by central banks…And when gold pops… It's only CENTRAL BANKS CONTINUE going to add kerosene to the fire (for funds to buy gold equitie
Slide 23: 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 24: Alaska: World-Leading Mining Jurisdiction
DONLIN GOLD ALASKA: WORLD-LEADING MINING JURISDICTION ▪ 2nd largest gold-producing state in the U.S.1 ▪ Alaska ranks 3rd out of 121 mining jurisdictions on the Global Investment Risk Index2 ▪ One of only 12 mining jurisdictions to receive a AA rating in 2023, all of which are in the U.S. and Canada
Slide 25: 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 31.7% 68.3% TOP 10 SHAREHOLDERS ALL OTHER SHAREHOLDERS 25
Slide 26: Q&A
Q&A 26 NOVAGOLD | 2024 Annual General Meeting of Shareholders
Slide 27: Appendix
APPENDIX 27 NOVAGOLD | 2024 Annual General Meeting of Shareholders
Slide 28: 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 29: 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 30: 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 31: 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 32: Board of Directors
APPENDIX BOARD OF DIRECTORS Dr. Thomas ▪ Chairman and CEO of The Electrum Group LLC, a privately ▪ President of Azteca Consulting LLC, and director of Glencore plc and held natural resources investment management company Kalidas Dundee Precious Metals Kaplan Former CEO of China Moly Corp and former
Slide 33: Endnotes
APPENDIX ENDNOTES SLIDE 5 – Donlin Gold is one of the most attractive tier 1 gold development story in the world today… SLIDE 15 – Permitting is largely in place 1. NOVAGOLD defines a Tier One gold development project as one with a projected production life of at 1. Under appeal. Appeals challenging
Slide 34: Endnotes
APPENDIX ENDNOTES SLIDE 24 – Alaska: World-leading mining jurisdiction 2011 (as amended January 20, 2012). The economic parameters are derived from the NI 43-101 Technical Report on the Donlin Gold Project, Alaska, USA, effective June 1, 2021, and the S-K 1300 Technical Report 1. Per the Bureau of L
Slide 35: NOVAGOLD Resources Inc.
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