Novagold Resources Inc. · AMEX:NG
Novagold Resources — FY2024 Earnings Presentation
32 slides from Novagold Resources's earnings presentation, Jan 23, 2025
Slide 1: 2024 Year-End Report & Donlin Gold Update
2024 Year-End Report & Donlin Gold Update January 23, 2025 TSX, NYSE AMERICAN: NG | NOVAGOLD.COM
Slide 2: 2024 Year-End Webcast & Conference Call Agenda
Introduction Mélanie Hennessey Vice President, Corporate Communications 2024 YEAR-END WEBCAST 2024 Year-End Update & CONFERENCE CALL Greg Lang AGENDA President & Chief Executive Officer 2024 Year-End Financials Peter Adamek Vice President & Chief Financial Officer Generational asset with strong, inv
Slide 3: Cautionary Statements Regarding Forward-Looking Statements
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS factors, should they change, except as required by law. This presentation includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable securities
Slide 4: Why NOVAGOLD?
WHY NOVAGOLD? Greg Lang President & Chief Executive Officer 4 NOVAGOLD | 2024 Year-End Report & Donlin Gold Project Update
Slide 5: Donlin Gold is one of the most attractive Tier 1 gold development assets
WHY NOVAGOLD? 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 1.1 Moz per annum at second quartile cash cost over a
Slide 6: Q4 2024 Highlights & Upcoming Catalysts
NOVAGOLD Unrelenting focus on long-term value creation Q4 2024 HIGHLIGHTS & UPCOMING CATALYSTS 2024 Donlin Gold Highlights ▪ Substantial completion of metallurgical test work (pilot plant) to confirm flowsheet optimizations ▪ Advancement of the resource model ▪ Incorporation of field and geochemical
Slide 7: Donlin Gold is positioned to become a million-ounce gold producer
1 PRODUCTION PROFILE DONLIN GOLD IS 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 1.0 1.13 Moz/yr1 0.8 0.6 0.42 0.44 0.4
Slide 8: Donlin Gold has more than double the global average gold grade
2 HIGH-GRADE AT SCALE DONLIN GOLD HAS MORE THAN 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 0.97 provides resilience through commodity price cycles g/t Global average gr
Slide 9: Alaska: World-Leading Mining Jurisdiction
3 JURISDICTIONAL SAFETY ALASKA: WORLD-LEADING MINING JURISDICTION ▪ 2nd largest gold-producing state in the U.S.1 ▪ $4.5B value of annual non-fuel mineral production in Alaska (6th highest in U.S.)2 ▪ $1.1B spend on goods and services with 450+ Alaska businesses3 ▪ 11,800 total direct and indirect j
Slide 10: Alaska Native Corporation Partnerships Elevate the Donlin Gold Project
A GENERATIONAL 4 OPPORTUNITY PARTNERSHIPS Donlin Gold is located on private land owned by ALASKA NATIVE CORPORATION Native Corporations, which was designated by law PARTNERSHIPS ELEVATE THE for mining activities five decades ago DONLIN GOLD PROJECT Calista Corporation: The Kuskokwim Corporation: ▪ C
Slide 11: Donlin Gold Permitting is Largely Complete
5 PERMITTING Key Federal permits for the Donlin Gold project are DONLIN GOLD PERMITTING IS in hand, State permitting is on-track LARGELY COMPLETE Federal Permitting Completed State Permitting Completed ✓ Final Environmental Impact Statement (EIS)1 ✓ Air Quality Joint Record of Decision (ROD) by the
Slide 12: Industry Veterans and Experts with a Track Record of Success
6 EXPERIENCED TEAM INDUSTRY VETERANS AND EXPERTS WITH A TRACK RECORD OF SUCCESS Over 135 Years of Combined Mining Sector Experience ▪ Experienced management team, most of whom joined NOVAGOLD from major mining companies ▪ Comprehensive knowledge in building and operating large open-pit and undergrou
Slide 13: The Next Big Gold Discovery Could Be at Donlin Gold
7 EXPLORATION POTENTIAL 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 ▪ Resources totaling 39 Moz1 (100% basis) 3km have been defined in the ACMA and Lewis pi
Slide 14: Donlin Gold: Extraordinary Leverage to Gold
DONLIN GOLD “In an environment where gold is hitting new highs, yet gold equities remain deeply undervalued, astute investors should take note. The current opportunity is EXTRAORDINARY LEVERAGE TO GOLD as compelling as any we’ve seen in the history of IN A PLACE WHERE ONE CAN KEEP IT the gold market
Slide 15: 2024 Highlights
2024 HIGHLIGHTS 15 NOVAGOLD | 2024 Year-End Report & Donlin Gold Project Update
Slide 16: Donlin Gold 2024 Activities
DONLIN GOLD Extensive technical work, environmental initiatives, and engagement throughout the Yukon- 2024 ACTIVITIES Kuskokwim region Technical Work ▪ Substantial completion of metallurgical test work (pilot plant) to confirm flowsheet optimizations ▪ Incorporation of field and geochemical data to
Slide 17: Donlin Gold 2024 Activities: Permitting and Litigation
DONLIN GOLD Providing support in permitting process and efficient issuance of remaining State permits and defending 2024 ACTIVITIES existing permits in litigation State permitting and litigation Federal litigation and bipartisan outreach campaign ▪ Submitted preliminary design packages for the Dam S
Slide 18: 2024 Financial Results
2024 FINANCIAL RESULTS Peter Adamek Vice President & Chief Financial Officer 18 NOVAGOLD | 2024 Year-End Report & Donlin Gold Project Update
Slide 19: 2024 Operating Performance
NOVAGOLD 2024 OPERATING PERFORMANCE Three months ended November 30, Year ended November 30, (US$ millions) 2024 2023 2024 2023 General and administrative1 $5.9 $5.4 $25.0 $21.8 Equity loss – Donlin Gold 3.2 2.5 12.9 18.5 Operating loss 9.1 7.9 37.9 40.3 Interest expense on promissory note 3.6 3.5 14
Slide 20: 2024 Cash Flow
NOVAGOLD 2024 CASH FLOW Three months ended November 30, Year ended November 30, (US$ millions) 2024 2023 2024 2023 General and administrative1 $(4.0) $(3.2) $(17.7) $(13.1) Donlin Gold funding (2.2) (2.5) (12.4) (17.8) Proceeds from note receivable ⎯ ⎯ ⎯ 25.0 Working capital, interest and other 1.8
Slide 21: Maintaining a Strong Treasury
MAINTAINING A STRONG TREASURY Cash and term deposits balance on November 30, 20241 Treasury $101.2 M $0 $20 $40 $60 $80 $100 $120 US$ (millions) Spending (millions) 2024 Budget 2024 Actual 2025 Budget Corporate G&A2 $16.9 $17.7 $16.0 Donlin Gold project expenditures 14.3 12.4 21.5 Total $31.2 $30.1
Slide 22: 2025 Activities & Upcoming Catalysts
NOVAGOLD ▪ NOVAGOLD and Barrick held a Donlin Gold workshop in Alaska in September to review work completed to date, plan for 2025 activities, and discuss next steps ▪ 2025 DONLIN GOLD BUDGET $43 MILLION (100% basis): 2025 – Camp operations with grid drilling to refine mine planning assumptions ACTI
Slide 23: Strong Institutional Shareholder Support
NOVAGOLD STRONG INSTITUTIONAL SHAREHOLDER SUPPORT The 10 largest shareholders hold almost 70% of shares issued and outstanding1 31.4% 68.6% ALL OTHER TOP 10 SHAREHOLDERS SHAREHOLDERS $ 25.4% Electrum Strategic Resources LP & affiliates Common shares issued & outstanding3 : 334,646,571 Options3: 8,83
Slide 24: Appendix
APPENDIX 24 NOVAGOLD | 2024 Year-End Report & Donlin Gold Project Update
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 30: Endnotes
APPENDIX ENDNOTES SLIDE 5 – Donlin Gold is one of the most attractive tier 1 gold development assets in the world today… SLIDE 11 – Donlin Gold permitting is largely complete 1. NOVAGOLD defines a Tier One gold development project as one with a projected production life of at least 10 1. Under appea
Slide 31: Endnotes
APPENDIX ENDNOTES SLIDE 20 –2024 cash flow Measured and Indicated Resources. Inferred Resources have great uncertainty as to their existence and whether they can be mined legally or economically. The cut-off date for the sample database used in the 1. Excludes non-cash share-based compensation expen
Slide 32: 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 Frank Gagnon F: 604 669 6272 Manager, Investor Relations E: info@novagold.com frank.gagnon@novagold.com