Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q2 2022 Earnings Presentation
32 slides from Novagold Resources's earnings presentation, Jul 6, 2022
Slide 1: 2022 Second Quarter Financial Results & Project Update
2022 Second Quarter Financial Results & Project Update July 6, 2022 TSX, NYSE American: NG | novagold.com
Slide 2: Second Quarter 2022 webcast & conference call agenda
Second Quarter Introduction Mélanie Hennessey 2022 webcast & Vice President, Corporate Communications conference call agenda Second Quarter update Greg Lang President & Chief Executive Officer Second Quarter financials David Ottewell Vice President & Chief Financial Officer Question & answer session
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: Onwards and upwards
Onwards and upwards NOVAGOLD’s long tenured director, Igor Levental, passed away suddenly and unexpectedly on June 10, 2022 Igor served as an independent director of the Company since 2010 and brought a unique perspective to NOVAGOLD’s Board of Directors and its Committees Our collective success has
Slide 5: 2021 drill program delivers outstanding gold intercepts
DONLIN GOLD 2021 drill program delivers outstanding gold intercepts Bringing Donlin Gold up the value chain Top ten intervals based on drilled grade-thickness1 Drilled Grade- Date Grade Hole Id From To Thickness Thickness Reported (g/t Au) (m) (m x g/t Au) 1. DC21-1970 9/2/2021 69.7 161.7 92.0 7.8 7
Slide 6: 2022 drill program
DONLIN GOLD 2022 drill program Largest program in more than 10 years progressing ahead of schedule ▪ 24,000 meters completed (70%) of the planned 34,000 meters drill program, with four drill rigs operating ▪ The Donlin Gold site crew (150 employees and contractors), are comprised of a majority of lo
Slide 7: 2022 drill program: ACMA and Lewis deposits open at depth
DONLIN GOLD 2022 drill program ACMA and Lewis deposits open at depth Longitudinal section view of the ACMA and Lewis deposits • High-grade intercepts point to potential feeder zones of this system • Significant exploration potential remains near the ACMA and Lewis deposits and the balance of the Don
Slide 8: 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) Queen ▪ Gold resource defined with Snow Quartz Ophir approximately 1,400 drillholes Dome tot
Slide 9: 2022 drill program: largest budget in more than a decade
DONLIN GOLD 2022 drill program: largest budget in more than a decade 2022 drill program $34M (approx. 34,000 meters of core drilling) • Grid drilling (mineralization continuity and geologic structural controls in three areas of the deposit) • In-pit and below pit exploration • Waste Rock Facility co
Slide 10: Health & safety of our people
Health & safety of our people Strict safety protocols and COVID-19 mitigation measures still in place NOVAGOLD is dedicated to the safety, health, and ▪ Morale at site is excellent as employees continue to welfare of our and Donlin Gold LLC’s employees and advance project activities at a good pace t
Slide 11: Permitting update
DONLIN GOLD Permitting update Key federal permits for the project received and state permitting is well-advanced Current progress: ▪ Alaska Department of Environmental Conservation (ADEC) Federal permitting completed State permitting completed Division of Water upheld the 401 Certification of the Cl
Slide 12: 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 13: Second quarter community engagement
DONLIN GOLD Second quarter community engagement Carried out a wide range of local and state-wide activities with our community partners ▪ Finalized a Shared Value Statement with Stony River, a village from the Yukon-Kuskokwim (“Y-K”) region for a total of nine to date ▪ Sponsored multiple Y-K commun
Slide 14: Sustainability performance
NOVAGOLD Sustainability performance 14 NOVAGOLD | 2022 Second Quarter Financial Results & Project Update
Slide 15: 2022 Second quarter financial results
2022 Second quarter financial results David Ottewell Vice President & Chief Financial Officer 15 NOVAGOLD | 2022 Second Quarter Financial Results & Project Update
Slide 16: 2022 operating performance
NOVAGOLD 2022 operating performance Three months ended Six months ended May 31, May 31, (US$ millions) 2022 2021 2022 2021 General and administrative $5.4 $5.0 $10.5 $10.3 Donlin Gold 8.4 4.2 12.5 6.2 Operating loss 13.8 9.2 23.0 16.5 Other expense, net1 1.2 1.3 2.0 2.0 Net loss $15.0 $10.5 $25.0 $1
Slide 17: 2022 cash flow
NOVAGOLD 2022 cash flow Three months ended Six months ended May 31, May 31, (US$ millions) 2022 2021 2022 2021 General and administrative1 $(3.2) $(2.9) $(6.3) $(6.2) Donlin Gold (10.6) (5.2) (16.5) (8.1) Working capital, interest and other 1.0 1.5 (1.9) 0.7 Withholding tax on share-based compensati
Slide 18: Maintaining a strong treasury
NOVAGOLD Maintaining a strong treasury Largest planned spending for Donlin Gold in over a decade Forecast 2022 spending: Donlin Gold project expenditures $30M Corporate G&A $13M Withholding taxes on PSUs and other working capital $3M Total $46M Due from Newmont $142M cash and term deposit balance on
Slide 19: Donlin Gold: a tier-one asset in a tier-one jurisdiction
DONLIN GOLD Donlin Gold: a tier-one asset1 in a tier-one jurisdiction2 Generational 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 land and indicated mi
Slide 20: Largest gold development project in its category
DONLIN GOLD Largest gold development project in its category1 A resource more than five times the size of the peer group average 50.0 40.0 39.0Moz Donlin Gold2 M&I gold resource (millions of ounces) 30.0 20.0 10.9 11.3 11.5 11.7 10.0 8.0 8.1 8.2 10.0 6.3 7.7Moz Peer group average1 3.9 4.2 4.6 5.0 3.
Slide 21: 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) 1.00 1.1 Moz/yr1 0.80 0.60 0.50 0.39 0.40 0.36 0.37 0.30 0.32 0.28 0.29
Slide 22: A substantial gold project in a safe jurisdiction
DONLIN GOLD A substantial gold project in a safe jurisdiction1 Comparing the top three gold producing operations2 and the five largest development-stage gold projects3 60.0 Donlin Gold Muruntau Livengood Olimpiada 50.0 48.2 46.0 Sukhoi Log Production/M&I gold resource (millions of ounces) 40.0 39.04
Slide 23: 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 1.12 Gold’s grade g/t provides resilience through commodity price cycles Global average grade1 Donlin Gold average grade2 See
Slide 24: Strong institutional shareholder and management support
NOVAGOLD Strong institutional shareholder and management support The 10 largest shareholders represent 65.8% of shares issued and outstanding1 Executive Officers’ ownership has increased to ~2.8 million shares2 since joining the company 35.2% 65.8% all other top 10 shareholders shareholders 1.6 25.4
Slide 25: Donlin Gold: a tier-one asset in a tier-one jurisdiction
DONLIN GOLD Donlin Gold: a tier-one asset1 in a tier-one jurisdiction2 Generational 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 land and indicated mi
Slide 26: 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 26 NOVAGOLD | 2022 Second Qu
Slide 27: Appendix
Appendix 27 NOVAGOLD | 2022 Second Quarter Financial Results & Project 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: Endnotes
Endnotes SLIDE 5 - 2021 drill program delivers outstanding gold intercepts 1. Significant intervals represent drilled intervals and not necessarily true thickness of mineralization. 2. Forecast includes $30 million to Donlin Gold, $13 million to NOVAGOLD G&A and $3 million for Mineralized intervals
Slide 31: Endnotes
Endnotes SLIDE 20 - Largest gold development project in its category reserves. See “Cautionary Note Concerning Reserve and Resource Estimates” and “Mineral Reserves 1. Peer group data based on company documents, public filings and websites as of February 2022. & Mineral Resources” table on slides 3,
Slide 32: Endnotes
Endnotes SLIDES 28 & 29 - Mineral reserves and Mineral resources Reserve and Mineral Resource estimates shown above remain unchanged from the 2011 estimates contained in the prior technical report. See “Cautionary Note Concerning Reserve & Resource 1. Mineral Reserves are reported within the pre-fea