Novagold Resources Inc. · AMEX:NG
Novagold Resources — FY2022 Earnings Presentation
36 slides from Novagold Resources's earnings presentation, Jan 26, 2023
Slide 1: 2022 Year-End Financial Results & Donlin Gold Update
2022 Year-End Financial Results & Donlin Gold Update January 26, 2023 TSX, NYSE American: NG | novagold.com
Slide 2: Year-End 2022 webcast & conference call agenda
Year-End Introduction Mélanie Hennessey 2022 webcast & Vice President, Corporate Communications conference call agenda 2022 Year-End Update Greg Lang President & Chief Executive Officer 2022 Year-End Financials David Ottewell Vice President & Chief Financial Officer Gold Commentary & Closing Remarks
Slide 3: Cautionary statements
Cautionary statements REGARDING FORWARD-LOOKING STATEMENTS Forward-looking statements are based on a number of material assumptions, including but not limited to the following, which This presentation includes certain “forward-looking information” and “forward-looking statements” (collectively “forw
Slide 4: 2022 drill program final assays delivered excellent results
2022 drill program final assays delivered excellent results Numerous high-grade gold intercepts Donlin Gold Top five intervals based on drilled grade-thickness January 19, 2023 release1 Drilled Date Grade Hole ID From To Thickness Reported (g/t Au) (m) DC22-2179 1/19/2023 41.32 58.59 17.27 8.92 DC22
Slide 5: 2022 Drill program – top significant intervals
DONLIN GOLD 2022 Drill program – top 20 significant intervals Consistently producing some of the Date Grade industry’s best drilling results Hole ID Location Reported From (m) To (m) Length(m) (g/t Au) DC22-2068 Divide 11/01/2022 117.52 159.80 42.28 30.68 DC22-2077 Divide 11/01/2022 150.11 199.07 48
Slide 6: Decades of government and stakeholder engagement
DONLIN GOLD Decades of government and stakeholder engagement Working together to take the Donlin Gold project up the value chain ▪ The Donlin Gold project lands are owned by Alaska Native Corporations (Calista Corporation and The Kuskokwim Corporation - TKC) and were selected specifically for minera
Slide 7: Permitting update
DONLIN GOLD Permitting update Key federal permits for the project received and state permitting is well-advanced Federal permitting completed State permitting completed ✓ Final Environmental Impact Statement (EIS) ✓ Air quality ✓ Joint Record of Decision (ROD) by the Army Corps of ✓ Alaska Pollutant
Slide 8: Permitting update
DONLIN GOLD Permitting update Current progress ▪ On September 15, 2022, 13 tribes, joining with Earthjustice, requested that the Corps do a Supplemental EIS and revoke the Clean Water Act (CWA) Section 404 permit, and EPA “Federal permitting in Alaska was a initiate a CWA Section 404(c) veto similar
Slide 9: Community, environmental, and social investments
DONLIN GOLD Community, environmental, and social investments Continued stakeholder engagement activities throughout the Yukon-Kuskokwim region Community Investments Community Engagement ▪ Funded and participated in health and safety initiatives ▪ Crooked Creek, the closest community to the project s
Slide 10: 2022 financial results
2022 financial results David Ottewell Vice President & Chief Financial Officer 10 NOVAGOLD | 2022 Year-End Financial Results & Donlin Gold Update
Slide 11: 2022 operating performance
NOVAGOLD 2022 operating performance Three months ended November 30, Year ended November 30, (US$ millions) 2022 2021 2022 2021 General and administrative $4.7 $5.0 $20.1 $20.2 Donlin Gold 6.3 3.7 28.2 16.6 Operating loss 11.0 8.7 48.3 36.8 Other expense, net1 1.2 1.5 5.0 3.7 Net loss $12.2 $10.2 $53
Slide 12: 2022 cash flow
NOVAGOLD 2022 cash flow Three months ended November 30, Year ended November 30, (US$ millions) 2022 2021 2022 2021 General and administrative1 $(2.8) $(3.0) $(11.9) $(12.0) Donlin Gold (3.5) (2.6) (28.4) (17.6) Working capital, interest and other 0.3 1.4 (0.8) 2.5 Withholding tax on share-based comp
Slide 13: Maintaining a strong treasury
NOVAGOLD Maintaining a strong treasury Due from Newmont $126M cash and term deposit balance on November 30, 2022 in July 20231 $126M $25M Treasury $0 $50 $100 $150 $200 US$ (millions) 2023 Budget2: Donlin Gold project expenditures $17M Corporate G&A $13M Working capital and other items $ 1M Total $3
Slide 14: Donlin Gold: a tier-one asset in a tier-one jurisdiction
DONLIN GOLD Donlin Gold: a tier-one asset1 in a tier-one jurisdiction2 Among largest gold development asset with strong, investor-friendly attributes SIZE GRADE EXPLORATION POTENTIAL 39 million gold ounces 2.24 g/t4 Au more than contained in measured double the world average Only 5% of 489 sq km lan
Slide 15: Positioned to become a million-ounce gold producer
DONLIN GOLD Positioned to become a million-ounce gold producer1 Anticipated to be one of the highest gold producers in the industry Donlin Gold’s 1.20 1.101 27-year mine life Projected annual gold production (millions of ounces) 1.03 1.00 39 Moz3 over a 27-year mine life 1.1 Moz/yr1 0.80 0.60 0.39 0
Slide 16: Double the global average gold grade
DONLIN GOLD Double the global average gold grade1 Among the world’s highest-grade known open-pit gold deposits 2.24 g/t While global average gold grades are declining, Donlin 1.03 Gold’s grade g/t provides resilience through commodity price cycles Global average grade1 Donlin Gold average grade2 See
Slide 17: 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 along strike ▪ From 2006 to 2011, M&I Far Side resources increased 135% (16.6Moz1 to 39.0Moz2 on 100% basis) Queen ▪ Gold resource defined with Snow Quartz Ophir Dome approximately 1,400
Slide 18: Great leverage in a place where you can keep the fruits of your leverage
DONLIN GOLD Great leverage in a place where you can keep the fruits of your leverage Comparing the top three gold producing operations2 and five largest gold development projects3 Donlin Gold Muruntau Livengood Olimpiada Projects/ M&I* Grade (g/t) Operations Sukhoi Log Gold development projects: Don
Slide 19: Alaska Native Corporation partnerships elevate the project
DONLIN GOLD Alaska Native Corporation partnerships elevate the project Donlin Gold has life-of-mine agreements with Alaska Native Corporations Calista and TKC Land valuable for resource potential was selected by regional Alaska Native Corporations, and resource development companies were invited by
Slide 20: Upcoming catalysts
DONLIN GOLD Upcoming catalysts Current progress • Update resource model • Complete trade-off studies • Decision on proceeding with feasibility study “We could not be happier with the outcome of this season’s drill program, Donlin Gold’s largest campaign in 15 years. From the earliest to the very las
Slide 21: Quote from Dr. Thomas Kaplan on investing
“As an investor, I find that the ability to make money is very much a function of developing a thesis, scrubbing that thesis to the point where one enjoys massive conviction, finding the right assets that will allow one to benefit from the underlying theme, increasingly so in a jurisdiction that sec
Slide 22: Why Invest in NOVAGOLD?
Why Invest in NOVAGOLD? SIZE 39Moz gold contained in measured and indicated mineral resources2 PARTNERSHIPS LEVERAGE GRADE JURISDICTION Time-tested partnerships with Excellent leverage to 2.24 g/t3 Au, more Donlin Gold Alaska is a premier Alaska Native Corporations a rising gold price mining jurisdi
Slide 23: Gold price quote from Dr. Thomas Kaplan
“Gold is marching to a different beat. When people least expect it, gold will go back to $2,000. People will say, it’s been here before. It’ll go to $2,050. People will say, it’s been here before. Then it will go to $2,100 and $2,150. And people will say, I’m going to buy it on a pullback. Then the
Slide 24: Gold price (US$ per ounce)
GOLD Supply decreases as demand pressure increases Gold established a solid $2,500 base following its 2011 to 2015 bear market $2,000 Gold price (US$ per ounce) $1,500 $1,000 $500 - Source: Bloomberg, September 2022 24 NOVAGOLD | 2022 Year-End Financial Results & Donlin Gold Update
Slide 25: Significant value upside with higher gold prices
DONLIN GOLD Significant value upside with higher gold prices $35.0 31.6B $30.0 ▪ Project return increases Net Present Value (NPV) (US$ in Billions) substantially with higher gold prices1 $25.0 22.5B ▪ Good payback at a broad range of gold $20.0 17.5B prices ▪ Long mine life offers $15.0 13.1B high l
Slide 26: Strong institutional shareholder and management support
NOVAGOLD Strong institutional shareholder and management support The 10 largest shareholders represent 68.9% of shares issued and outstanding.1 Executive Officers’ ownership has increased to ~2.8 million shares2 since joining the company 31.1% 68.9% all other top 10 shareholders shareholders 2.3 25.
Slide 27: Appendix
Appendix 27 NOVAGOLD | 2022 Year-End Financial Results & Donlin Gold Update
Slide 28: Mineral reserves
Mineral reserves Attributable to Donlin Gold Tonnage Grade Metal Content NOVGAOLD *Mineral reserves and GOLD kt g/t Au koz Au koz Au mineral resources are reported on a 100% basis Reserves1 and on a 50% basis. Proven 7,683 2.32 573 287 NOVAGOLD and Barrick each own 50% of the Probable 497,128 2.08 3
Slide 29: Mineral resources
Mineral resources Attributable to Donlin Gold Tonnage Grade Metal content NOVGAOLD *Mineral reserves and GOLD kt g/t Au koz Au koz Au mineral resources are reported on a 100% basis Resources2, exclusive of Reserves and on a 50% basis. NOVAGOLD and Barrick Measured 869 2.23 62 31 each own 50% of the
Slide 30: Donlin Gold
Donlin Gold S-K 1300 Technical Report – Donlin Gold Project, Alaska, USA dated November 30, 2021 (100% basis) 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 operatio
Slide 31: Management
Management ▪ Former President of Barrick Gold North America Gregory Lang ▪ 40+ years experience building & operating major open-pit and underground mines (Goldstrike, Cortez, President and CEO Turquoise Ridge, Bald Mountain) ▪ Diverse experience in mine operations, project development and evaluation
Slide 32: Board of directors
Board of directors ▪ Chairman and CEO of The Electrum Group LLC, a privately Dr. Thomas ▪ Chairman of Glencore plc, and director of Trilogy Metals and held natural resources investment management company Kalidas Dundee Precious Metals Inc. Kaplan that controls a diversified portfolio of precious and
Slide 33: Endnotes
Endnotes SLIDE 4 – 2022 Drill program delivered excellent results SLIDE 14 - A tier-one asset in a tier-one jurisdiction 1. Significant intervals represent drilled intervals and not necessarily true thickness of mineralization. 1. NOVAGOLD defines a Tier-One gold development project as one with a pr
Slide 34: Endnotes
Endnotes SLIDE 16 - Double the global average gold grade SLIDE 23 – Why invest in NOVAGOLD? 1. 2021 average grade of open-pit and underground deposits with gold as primary commodity and 1. NOVAGOLD sold its 50% ownership of the Galore Creek project to Newmont in 2018. Deferred over 1Moz in measured
Slide 35: Endnotes
Endnotes SLIDES 28 & 29- Mineral reserves and Mineral resources 1. Mineral Reserves are reported within the pre-feasibility pit designs, and supported by a mine Technical Reports and Qualified Persons schedule, featuring variable throughput rates, stockpiling and cut-off optimization. The pit design
Slide 36: TSX, NYSE American: NG | novagold.com
TSX, NYSE American: NG | novagold.com NOVAGOLD RESOURCES INC. Mélanie Hennessey Suite 1860 – 400 Burrard Street VP, Corporate Communications Vancouver BC Canada V6C 3A6 melanie.hennessey@novagold.com T: 604 669 6227 TF: 1 866 669 6227 F: 604 669 6272 E: info@novagold.com 36 NOVAGOLD | 2022 Year-End