Novagold Resources Inc. · AMEX:NG
Novagold Resources — Shareholder Meeting (May 2023)
41 slides from Novagold Resources's shareholder meeting presentation, May 18, 2023
Slide 1: 2023 Annual General Meeting of Shareholders
2023 Annual General Meeting of Shareholders May 18, 2023 TSX, NYSE American: NG | novagold.com
Slide 2: Formal Business and agenda
Formal Business Mélanie Hennessey Vice President, Corporate Communications 2023 Annual General Company Update Meeting of Shareholders Greg Lang President & Chief Executive Officer Gold Commentary & Closing Remarks Dr. Thomas Kaplan Chairman Question & Answer Session 2 NOVAGOLD | 2023 Annual General
Slide 3: Cautionary Statements Regarding Forward-Looking 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 could prove to be This presentation includes certain “forward-looking information” and “forward-looking statements” (
Slide 4: Investment Thesis
Investment Thesis Greg Lang President & Chief Executive Officer 4 NOVAGOLD | 2023 Annual General Meeting of Shareholders
Slide 5: Why Invest in NOVAGOLD?
SIZE 39Moz gold contained in measured WHY INVEST IN NOVAGOLD? and indicated mineral resources2 PARTNERSHIPS LEVERAGE BALANCE SHEET Time-tested partnerships with Alaska Native Corporations Excellent leverage to a rising gold price Cash and term deposits of $116 million with $25 million of Donlin Gold
Slide 6: Stewarding a Robust Treasury
NOVAGOLD STEWARDING A ROBUST TREASURY Due from Newmont Cash and term deposit balance on February 28, 2023 in July 20231 $116M $25M $0 $50 $100 $150 2023 Budget2 Donlin Gold project expenditures $17M Corporate G&A $13M Working capital and other items $1M Total $31M See endnotes for this slide in Appe
Slide 7: Steadily and Surely Advancing the Donlin Gold Project Up the Value Chain
NOVAGOLD STEADILY AND SURELY ADVANCING THE DONLIN GOLD PROJECT UP THE VALUE CHAIN Executing the explicit strategy that was set forth by the CEO & Chairman more than a decade ago ▪ Unlocking the value of NOVAGOLD’s several high-quality assets for our shareholders and to dedicate our entire energy tow
Slide 8: 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 Calista Corporation Land valuable for resource “ The Donlin Gold Project is important to Calista because of the potential it has not only for
Slide 9: Positioned to Become a Million-Ounce Gold Producer
DONLIN GOLD POSITIONED TO BECOME A MILLION-OUNCE GOLD PRODUCER 1 Anticipated to be one of the highest gold producers in the Americas Donlin Gold’s 1.20 27-year mine life 1.101 Projected annual gold production (millions of ounces) 1.03 1.00 1.10 Moz/yr1 0.80 0.60 0.39 0.40 0.40 0.36 0.37 0.35 0.30 0.
Slide 10: Double the Global Average Gold Grade
DONLIN GOLD DOUBLE THE GLOBAL AVERAGE GOLD GRADE 1 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 1.03 provides resilience through commodity price cycles g/t Global average grade1 Donlin Gold average grade2 Se
Slide 11: With 95% of Donlin Gold Land Unexplored
DONLIN GOLD WITH 95% OF DONLIN GOLD LAND UNEXPLORED… THE NEXT BIG GOLD DISCOVERY COULD BE AT DONLIN GOLD Significant potential to expand current resource at depth and along strike Far Side 8km ▪ From 2006 to 2011, M&I Queen resources increased 135% (16.6Moz1 to Snow Quartz Ophir ACMA Pit Dome 39.0Mo
Slide 12: 2022 Achievements & Current Activities
2022 Achievements & Current Activities 12 NOVAGOLD | 2023 Annual General Meeting of Shareholders
Slide 13: 2022 Drill Program Delivered Among the Best Assay Results
DONLIN GOLD 2022 DRILL PROGRAM DELIVERED AMONG THE BEST ASSAY RESULTS IN THE GOLD INDUSTRY GLOBALLY Donlin Gold’s largest drill program in 15 years – Top 20 signifiant intervals1 Hole ID Location Date Reported From (m) To (m) Length Grade (m) (g/t Au) ▪ The 141-hole, 42,331m2 drill DC22-2068 Divide
Slide 14: 2022 Achievements and Milestones
2022 ACHIEVEMENTS AND MILESTONES Taking Donlin Gold up the value chain Environmental, social, & community Permitting activities achievements • Multiple fishery studies, reclamation work and other • Applied for a new air quality permit from the Alaska environmental activities Department of Environmen
Slide 15: 2023 Activities at Donlin Gold
2023 ACTIVITES AT DONLIN GOLD Advancing a federally permitted project toward an updated feasibility study Mine optimization: ▪ Completing updated geologic and resource models and reviewing key project assumptions, inputs, and design components for optimization ▪ To support mine planning and mine des
Slide 16: Upcoming Catalysts
NOVAGOLD UPCOMING CATALYSTS Steadily advancing the Donlin Gold project up the value chain ▪ Update resource model ▪ Complete trade-off studies ▪ Moving to commence an updated Feasibility Study v “ Possessing the unique combination of industry-leading size, grade, and excellent exploration upside wit
Slide 17: NOVAGOLD Launches 2022 Annual Report
NOVAGOLD NOVAGOLD LAUNCHES 2022 ANNUAL REPORT Featuring special interview with Dr. Thomas Kaplan and Daniela Cambone View full report here: https://www.novagold.com/investors/financials/ 17 NOVAGOLD | 2023 Annual General Meeting of Shareholders
Slide 18: NOVAGOLD Launches 2022 Sustainability Report
NOVAGOLD NOVAGOLD LAUNCHES 2022 SUSTAINABILITY REPORT Featuring 2022 environmental, social and corporate governance performance data View full report here: (Insert Link) 18 NOVAGOLD | 2023 Annual General Meeting of Shareholders
Slide 19: Gold Sector
Gold Sector Dr. Thomas Kaplan Chairman, NOVAGOLD 19 NOVAGOLD | 2023 Annual General Meeting of Shareholders
Slide 20: Donlin Gold is truly best-in-class (Chairman quote)
DONLIN GOLD “ “Donlin Gold is truly best-in-class in its combination of attributes. Possessing both the extraordinary size and quality to move the needle in the gold industry, our project’s location in Alaska – a safe and time-tested jurisdiction in which to develop, build and operate a mine for man
Slide 21: Extraordinary Leverage to Gold
DONLIN GOLD EXTRAORDINARY LEVERAGE TO GOLD $35.0 31.6B ▪ Project return increases $30.0 substantially with higher gold Net Present Value (NPV) (US$ in Billions) prices1 ▪ Good payback at a broad $25.0 22.5B range of gold prices ▪ Long mine life offers high $20.0 17.5B likelihood of enjoying one or m
Slide 22: Great Leverage in a Place Where You Can Keep It
DONLIN GOLD GREAT LEVERAGE IN A PLACE WHERE YOU CAN KEEP IT Comparing the top three gold producing operations1 and five largest gold development projects2 Projects/ Grade Olimpiada Location M&I* Operations (g/t) KSM Gold development projects Sukhoi Log Muruntau Donlin Gold Alaska 39.04 2.245 Livengo
Slide 23: Not All Ounces Are the Same
DONLIN GOLD NOT ALL OUNCES ARE THE SAME Global gold reserves1 ranked by favorability of mining jurisdiction2 Increasing jurisdictional risk2 Top 12 Jurisdiction Rank 13-24 Jurisdiction Rank 25-36 Jurisdiction Rank 37-62 Jurisdiction Rank P&P Reserve Grade Development Stage Production Stage 60 8.0 Mi
Slide 24: Alaska – A Top-Tier Mining Jurisdiction
DONLIN GOLD ALASKA – A TOP-TIER MINING JURISDICTION ▪ Alaska ranks 11th globally in the Fraser Institute Annual Survey of Mining Companies 2022 Investment Attractiveness Index and 9th in terms of gold reserves on a global scale1 ▪ As the second largest US gold-producing state next to Nevada, the dis
Slide 25: Supply Decreases as Demand Pressure Increases
GOLD SUPPLY DECREASES AS DEMAND PRESSURE INCREASES Gold established a solid base following its 2011 to 2015 bear market Recession Gold “When gold establishes a new $2,500 equilibrium range, it will be accompanied by tremendous volatility. And those who are trying to buy it are going to try in USD 2,
Slide 26: Intermediate Status of the Gold Price Projection to 2030
INTERMEDIATE STATUS OF THE GOLD PRICE PROJECTION TO 2030 Gold, and Projected Gold Price, in USD, 01/1970-12/2030 Source: Incrementum – In Gold We Trust Report August 2022 “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
Slide 27: Global Central Bank Gold Reserves Are Back to Mid-1970s Levels
GOLD GLOBAL CENTRAL BANK GOLD RESERVES ARE BACK TO MID-1970s LEVELS Global Central Bank gold reserves, in tonnes, 1974-2022 • Central Bank attitudes toward gold changed following the 1997 Asian financial crisis and then later, the 2007-08 financial crisis. Since 2010, central banks have been net buy
Slide 28: 2022 Marked the Strongest Year for Gold Demand in Over a Decade
GOLD 2022 MARKED THE STRONGEST YEAR FOR GOLD DEMAND IN OVER A DECADE Annual gold demand jumped nearly 30% in the last two years Annual gold demand of 4,741 tonnes versus 4,013 tonnes in 2021 • Gold investment was impacted by a combination of geopolitical uncertainty, multi-decade high inflation, esp
Slide 29: Gold Equities in Inflationary Times (1971-1976)
GOLD GOLD EQUITIES IN INFLATIONARY TIMES (1971-1976) Historically, inflationary recessions have triggered a rotation out of broader equity markets while gold equities outperformed S&P Gold BGMI • Between 1971 & 1974, 30.0% 600.0% inflation increased from 3% to11% 20.0% 500.0% • In the same time fram
Slide 30: Strong Institutional Shareholder and Management Support
NOVAGOLD STRONG INSTITUTIONAL SHAREHOLDER AND MANAGEMENT SUPPORT The10 largest shareholders represent 68.7% of shares issued and outstanding1 Executive Officers’ ownership has increased to ~2.8 million2 shares since joining the company 68.7 % 31.3% top 10 shareholders 25.3% Electrum Strategic Resour
Slide 31: Q&A
Q&A 31 NOVAGOLD | 2023 Annual General Meeting of Shareholders
Slide 32: Appendix
Appendix 32 NOVAGOLD | 2023 Annual General Meeting of Shareholders
Slide 33: Mineral Reserves
MINERAL RESERVES Attributable to Donlin Gold Tonnage Grade Metal content NOVGAOLD *Mineral reserves and mineral resources GOLD kt g/t Au koz Au koz Au are reported on a 100% basis and on a 50% basis. Reserves1 NOVAGOLD and Barrick each own 50% Proven 7,683 2.32 573 287 of the Donlin Gold project. Pr
Slide 34: Mineral Resources
MINERAL RESOURCES Attributable to Donlin Gold Tonnage Grade Metal content *Mineral reserves and mineral resources are NOVGAOLD reported on a 100% basis and on a 50% basis. GOLD kt g/t Au koz Au koz Au NOVAGOLD and Barrick each own 50% of the Donlin Gold project. Resources2, exclusive of Reserves Don
Slide 35: S-K 1300 Technical Report Summary – Donlin Gold
DONLIN GOLD S-K 1300 Technical Report Summary – Donlin Gold project, Alaska, USA dated November 30, 2021 (100% basis) Key financial economic & production aata 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
Slide 36: 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 37: 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 38: Endnotes
ENDNOTES SLIDE 5 - Why invest in NOVAGOLD? SLIDE 10 - Double the global average gold grade 1. NOVAGOLD sold its 50% ownership of the Galore Creek project to Newmont in 2018. Deferred 1. 2021 average grade of open-pit and underground deposits with gold as primary commodity and compensation on the sal
Slide 39: Endnotes
ENDNOTES SLIDE 21 – Extraordinary leverage to gold SLIDE 24 – Alaska – A top tier mining jurisdiction 1. Donlin Gold estimates as per the 2021 Technical Report and the S-K 1300 Technical Report Summary. All dollar figures are in USD, represent 100% of the project of which NOVAGOLD’s share is 50%, an
Slide 40: Endnotes
ENDNOTES SLIDES 33 & 34- Mineral reserves and Mineral resources 1. Mineral Reserves are reported within the pre-feasibility pit designs, and supported by a mine schedule, Technical Reports and Qualified Persons featuring variable throughput rates, stockpiling and cut-off optimization. The pit design
Slide 41: NOVAGOLD Resources Inc. contact details
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 F: 604 669 6272 E: info@novagold.com TSX, NYSE American: NG | novagold.com 41 NOVAGOLD | 2023 Annual Ge