Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q3 2022 Earnings Presentation
33 slides from Novagold Resources's earnings presentation, Oct 5, 2022
Slide 1: 2022 Third Quarter Financial Results & Project Update
2022 Third Quarter Financial Results & Project Update October 5, 2022 TSX, NYSE American: NG | novagold.com
Slide 2: Third Quarter 2022 webcast & conference call agenda
Third Quarter Introduction Mélanie Hennessey 2022 webcast & Vice President, Corporate Communications conference call agenda Third Quarter update Greg Lang President & Chief Executive Officer Third Quarter financials David Ottewell Vice President & Chief Financial Officer Question & answer session 2
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: Excellent initial 2022 drill program results
DONLIN GOLD Excellent initial 2022 drill program results More high-grade gold intercepts demonstrating good grade continuity Top five intervals based on drilled grade-thickness1 Drilled Date Grade Hole ID From To Thickness Reported (g/t Au) (m) DC22-2040 7/28/2022 232.95 285.22 52.27 14.63 DC22-2040
Slide 5: 2022: largest program in more than a decade
DONLIN GOLD 2022: largest program in more than a decade 2022 drill program $38M • Grid drilling (mineralization continuity and geologic structural controls in three areas of the deposit) • In-pit and below pit exploration • Waste Rock Facility condemnation drilling • Platform mapping to confirm mine
Slide 6: Decades of government and stakeholder engagement
DONLIN GOLD Decades of government and stakeholder engagement Working together since 2001 to take the Donlin Gold project up the value chain ▪ The Donlin Gold project lands are owned by the Alaska Native Corporations (Calista Corporation and The Kuskokwim Corporation - TKC) and were selected specific
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 ▪ Alaska Department of Environmental Conservation (ADEC) Division of Water upheld the “Federal permitting in Alaska was a 401 Certification of the Clean Water Act (CWA) The decision is under further legal review tremendous achievement and a by the ADEC
Slide 9: 2022 sustainability
2022 sustainability NOVAGOLD | 2022 Third Quarter Financial Results & Project Update 9
Slide 10: Health & Safety
DONLIN GOLD Health & Safety Committed to providing an environment in which all our people make it home safe everyday ▪ Donlin Gold worked with our dedicated community partners in Alaska and in the Yukon-Kuskokwim (Y-K) region to execute the largest drill program at Donlin since 2007, while protectin
Slide 11: Third quarter community engagement
DONLIN GOLD Third quarter community engagement Continued collaboration with Calista and TKC in all aspects of outreach ▪ Signing two additional Shared Value Statements with Pilot Station and Toksook Bay in the Y-K region for a total of 11 to date ▪ Sponsoring youth education and health-focused activ
Slide 12: Community
Community Mutually beneficial community investments to achieve broader goals 2022 Donlin Gold “In It for the Long Haul” backhaul project ▪ Contributing and participating in the fifth annual “In It for the Long Haul” Backhaul Project – to collect, remove, and safely dispose of household hazardous and
Slide 13: 2022 third quarter financial results
2022 third quarter financial results David Ottewell Vice President & Chief Financial Officer 13 NOVAGOLD | 2022 Third Quarter Financial Results & Project Update
Slide 14: 2022 third quarter operating performance
NOVAGOLD 2022 third quarter operating performance Three months ended August 31, Nine months ended August 31, (US$ millions) 2022 2021 2022 2021 General and administrative $4.9 $4.9 $15.4 $15.2 Donlin Gold 9.4 6.7 21.9 12.9 Operating loss 14.3 11.6 37.3 28.1 Other expense, net1 1.8 0.2 3.8 2.2 Net lo
Slide 15: 2022 third quarter cash flow
NOVAGOLD 2022 third quarter cash flow Three months ended August 31, Nine months ended August 31, (US$ millions) 2022 2021 2022 2021 General and administrative1 $(2.8) $(2.8) $(9.1) $(9.0) Donlin Gold (8.4) (6.9) (24.9) (15.0) Working capital, interest and other 0.8 0.4 (1.1) 1.1 Withholding tax on s
Slide 16: Maintaining a strong treasury
NOVAGOLD Maintaining a strong treasury Largest planned spending for Donlin Gold in over a decade Due from Newmont $132M cash and term deposit balance on August 31, 2022 in July 20231 $132M $25M Treasury $0 $50 $100 $150 $200 US$ (millions) 2022 Budget: Donlin Gold project expenditures $32M Corporate
Slide 17: 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 18: 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 19: 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 20: 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 21: 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% Queen basis) Snow Quartz Ophir ▪ Gold resource defined with Dome approximately 1,400
Slide 22: 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 23: 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 24: Strong institutional shareholder and management support
NOVAGOLD Strong institutional shareholder and management support The 10 largest shareholders represent 67.1% of shares issued and outstanding1 Executive Officers’ ownership has increased to ~2.8 million shares2 since joining the company 32.9% 67.1% 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 Third Qua
Slide 27: Appendix
Appendix 27 NOVAGOLD | 2022 Third 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: 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: Endnotes
Endnotes SLIDE 4 – Excellent initial 2022 drill program results 1. Significant intervals represent drilled intervals and not necessarily true thickness of mineralization. 3. Represents 100% of M&I resources, inclusive of mineral reserves, of which 50% is NOVAGOLD’s share. Mineralized intervals meet
Slide 32: Endnotes
Endnotes SLIDE 21 - The next big gold discovery could be at Donlin Gold SLIDE 24 - Strong institutional shareholder and management support 1. Represents measured and indicated mineral resources previously reported by NOVAGOLD and 1. Shareholder positions are based on the latest 13-D, 13-F or 13-G fi
Slide 33: 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