Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q1 2024 Earnings Presentation
34 slides from Novagold Resources's earnings presentation, Apr 4, 2024
Slide 1: 2024 First Quarter Financial Results
2024 FIRST QUARTER FINANCIAL RESULTS April 4, 2024 TSX, NYSE AMERICAN: NG | NOVAGOLD.COM
Slide 2: 2024 First Quarter Webcast & Conference Call Agenda
Introduction Mélanie Hennessey Vice President, Corporate Communications 2024 FIRST QUARTER First Quarter Update WEBCAST & CONFERENCE Greg Lang CALL AGENDA President & Chief Executive Officer First Quarter Financials David Ottewell Vice President & Chief Financial Officer Generational asset with stro
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 First Quarter Financial Results & Project Update
Slide 5: Donlin Gold: A Tier-One Asset in a World-Leading Jurisdiction
SIZE GRADE 39Moz gold contained in 2.24 g/t Au2, more measured and indicated than double the world mineral resources1 average open-pit and underground grade3 DONLIN GOLD: JURISDICTION PARTNERSHIPS A TIER-ONE ASSET IN Alaska is a world- Longstanding partnerships with A WORLD-LEADING leading mining ju
Slide 6: Advancing the Donlin Gold Project Up the Value Chain
NOVAGOLD Unlocking value from a pure play on what we and many of our largest shareholders regard as the most exciting ADVANCING THE DONLIN GOLD development project in the gold industry globally PROJECT UP THE VALUE CHAIN Successful strategic repositioning as a pure gold play ▪ 2012: Spin-out of 100%
Slide 7: Alaska: World-Leading Mining Jurisdiction
DONLIN GOLD ALASKA: WORLD-LEADING MINING JURISDICTION ▪ 2nd largest gold-producing state in the U.S.¹ ▪ Well-defined state permitting process ▪ $4.5B value of non-fuel mineral production in Alaska (6th highest in U.S.)² ▪ 11,400 total direct and indirect jobs attributed to Alaska mining industry3 ▪
Slide 8: 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 9: 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 10: 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 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 ▪ Since inception, a total ACMA Pit Dome of 39Moz1 (100% basis) Lewis Pit have been defined in 3km the ACMA and Lewis pits w
Slide 12: Alaska Native Corporation Partnerships Elevate the Project
DONLIN GOLD The Donlin Gold Project is important to Calista because of the potential it has not only for Calista and our Shareholders but for the communities in our region. We need to provide hope for our young people. The jobs Donlin will provide at the ALASKA NATIVE project site and other location
Slide 13: ESG Performance (Fiscal Year 2023)
NOVAGOLD Committed to Responsible Mining ESG PERFORMANCE and Economic Development in (Fiscal Year 2023) Alaska’s Yukon-Kuskokwim Region
Slide 14: 2024 First Quarter Highlights
2024 FIRST QUARTER HIGHLIGHTS 14 NOVAGOLD | 2024 First Quarter Financial Results & Project Update
Slide 15: 2024 First Quarter Highlights
DONLIN GOLD Donlin Gold First Quarter Activities ▪ Completion of the scope of work for resource modelling by a third-party consultant for an updated resource model ▪ Advancement of metallurgical test work 2024 FIRST QUARTER with a pilot plant in Ontario, Canada, to confirm proposed optimizations to
Slide 16: First Quarter Highlights (Continued)
DONLIN GOLD Considerable outreach and engagement FIRST QUARTER HIGHLIGHTS activities throughout the Y-K region (CONTINUED) Community Investments & Engagement Donlin Gold conducted over 1,700 direct engagements with key stakeholders from 62 Y-K communities ▪ Finalized an additional Shared Values Stat
Slide 17: Permitting Update
DONLIN GOLD Key Federal permits for the project have been received and State permitting is well-advanced PERMITTING UPDATE Federal Permitting Completed State Permitting Completed ✓ Final Environmental Impact Statement (EIS)* ✓ Air Quality ✓ Joint Record of Decision (ROD) by the U.S. Army ✓ Alaska Po
Slide 18: Current Activities
DONLIN GOLD Providing support in permitting process and efficient issuance of remaining State-level permits and defending Federal and State permits in litigation CURRENT ACTIVITIES State permitting and litigation activities Federal litigation activities and bipartisan outreach campaign ▪ Ongoing wor
Slide 19: 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 20: 2024 First Quarter Financial Results
2024 FIRST QUARTER FINANCIAL RESULTS David Ottewell Vice President & Chief Financial Officer 20 NOVAGOLD | 2024 First Quarter Financial Results & Project Update
Slide 21: Q1 2024 Operating Performance
NOVAGOLD Q1 2024 OPERATING PERFORMANCE Three months ended February 29, February 28, (US$ millions) 2024 2023 General and administrative1 $6.2 $5.6 Donlin Gold 3.0 4.5 Operating loss 9.2 10.1 Interest expense on promissory note 3.6 4.5 Interest and dividend income (1.6) (1.3) Other expense, net1 (1.0
Slide 22: Q1 2024 Cash Flow
NOVAGOLD Q1 2024 CASH FLOW Three months ended February 29, February 28, (US$ millions) 2024 2023 General and administrative1 $(3.9) $(3.4) Donlin Gold (3.6) (5.7) Working capital, interest and other (0.7) (0.6) Decrease in cash and term deposits (8.2) (9.7) Cash and term deposits: Beginning 125.7 12
Slide 23: Maintaining a Strong Treasury
NOVAGOLD 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 23 NOVAGOLD | 2024 First Quart
Slide 24: 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) – Regional infrastructure support planning – Resource modelling – Geoscience hydrology and closure planning – Advance dam certificate
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 Feb. 29, 2024 32.2% 67.8% TOP 10 SHAREHOLDERS ALL OTHER SHAREHOLDERS 25.
Slide 26: Appendix
APPENDIX 26 NOVAGOLD | 2024 First Quarter Financial Results & Project Update
Slide 27: Mineral Reserves
APPENDIX MINERAL RESERVES Attributable to Donlin Gold Tonnage Grade Metal content NOVAGOLD *Mineral resources reported on a 100% basis GOLD kt g/t Au koz Au koz Au and on a 50% basis. NOVAGOLD and Barrick Reserves1 each own 50% of the Donlin Gold project. Proven 7,683 2.32 573 287 Donlin Gold approx
Slide 28: 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 29: 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 30: 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 31: 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 32: Endnotes
APPENDIX ENDNOTES SLIDE 5 – Donlin Gold: A tier-one asset in a world-leading jurisdiction SLIDE 9 – Double the global average gold grade 1. Represents 100% of measured and indicated resources, inclusive of mineral reserves, of which 50% is 1. 2024 average grade of open pit and underground deposits w
Slide 33: Endnotes
APPENDIX ENDNOTES SLIDE 25 – Strong institutional shareholder and management support marketing (selling costs) of $1.85/oz recovered; stockpile rehandle costs of $0.20/t processed assuming that 45% of mill feed is rehandled; variable royalty rate, based on royalty of 4.5% * (Au price – selling cost)
Slide 34: 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