Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q2 2023 Earnings Presentation
30 slides from Novagold Resources's earnings presentation, Jun 28, 2023
Slide 1: 2023 Second Quarter Financial Results and Donlin Gold Update
2023 Second Quarter Financial Results and Donlin Gold Update June 28, 2023 TSX, NYSE American: NG | novagold.com
Slide 2: Introduction
Introduction Second Quarter Mélanie Hennessey Vice President, Corporate Communications 2023 webcast 2023 Second Quarter Update & conference call Greg Lang President & Chief Executive Officer agenda 2023 Second Quarter Financials David Ottewell Vice President & Chief Financial Officer Question & Answ
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
Slide 5: Why Invest in NOVAGOLD?
SIZE 39Moz gold contained in WHY INVEST IN NOVAGOLD? measured and indicated mineral resources2 PARTNERSHIPS LEVERAGE BALANCE SHEET Longstanding partnerships Excellent Cash and term deposits of Donlin Gold with Alaska Native leverage to a $109 million with $25 Corporations and Barrick rising gold pri
Slide 6: 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 1.20 1.13 Projected annual gold production (millions of ounces) 1.03 Donlin Gold’s 1.00 27-year mine life 0.80 1.10 Moz/yr1 0.60 0.42 0.36 0.38 0.40 0.40 0.31 0.32 0.3
Slide 7: 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 0.96 provides resilience through commodity price cycles g/t Global average grade1 Donlin Gold average grade2 Se
Slide 8: With 82% of Donlin Gold Land Unexplored
DONLIN GOLD WITH 82% 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 9: 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 six largest gold development projects2 Projects/ Grade Location M&I* Operations (g/t) Olimpiada Gold development projects KSM Sukhoi Log KSM British 88.4 0.51 Muruntau Columbia Livengoo
Slide 10: 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 $20.0 17.5B likelihood of enjoying one or m
Slide 11: Alaska Native Corporation Partnerships Elevate the Project
DONLIN GOLD ALASKA NATIVE CORPORATION PARTNERSHIPS ELEVATE THE PROJECT Donlin Gold has life-of-mine agreements with Alaska Native Corporations Calista and TKC Calista Corporation Land valuable for resource “ The Donlin Gold Project is important to Calista because of the potential it has not only for
Slide 12: 2023 Second Quarter Highlights
2023 Second Quarter Highlights 12
Slide 13: Second Quarter Activities
DONLIN GOLD SECOND QUARTER ACTIVITIES Advancing a federally permitted project toward an updated feasibility study Activities advanced in five key areas at Donlin Gold: 1. Moved toward completion of the geologic and resource models with the data derived from the extensive drill programs over the last
Slide 14: Second Quarter Activities: Partnerships and Community Engagement
DONLIN GOLD SECOND QUARTER ACTIVITIES Longstanding partnerships with our Alaska Native Corporation Partners Calista and TKC with considerable outreach and engagement activities throughout the Y-K region Environmental and Social Initiatives Community Engagement ▪ Supported Crooked Creek with supplies
Slide 15: NOVAGOLD Launches 2022 Sustainability Report
NOVAGOLD NOVAGOLD LAUNCHES 2022 SUSTAINABILITY REPORT Featuring 2022 environmental, social and corporate governance performance data View full report here: https://www.novagold.com/sustainability/ 15
Slide 16: 2023 Second Quarter Financial Results
2023 Second Quarter Financial Results David Ottewell Vice President & Chief Financial Officer 16
Slide 17: Q2 2023 Operating Performance
NOVAGOLD Q2 2023 OPERATING PERFORMANCE Three months ended May 31, Six months ended May 31, (US$ millions) 2023 2022 2023 2022 General and administrative $5.5 $5.4 $11.1 $10.5 Donlin Gold 7.5 8.4 12.0 12.5 Operating loss 13.1 13.8 23.1 23.0 Other expense, net1 1.5 1.2 2.2 2.0 Net loss $14.6 $15.0 $25
Slide 18: Q2 2023 Cash Flow
NOVAGOLD Q2 2023 CASH FLOW Three months ended May 31, Six months ended May 31, (US$ millions) 2023 2022 2023 2022 General and administrative1 $(3.4) $(3.3) $(6.8) $(6.4) Donlin Gold (7.0) (10.6) (12.8) (16.5) Working capital, interest and other 3.2 9.1 2.7 6.2 Withholding tax on share-based compensa
Slide 19: Stewarding a Robust Treasury
NOVAGOLD STEWARDING A ROBUST TREASURY Due from Newmont Cash and term deposit balance on May 31, 2023 in July 20231 $109M $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 Appendix
Slide 20: Upcoming Catalysts
NOVAGOLD UPCOMING CATALYSTS Steadily advancing the Donlin Gold project up the value chain ▪ Update resource model ▪ Complete fieldwork and trade-off studies ▪ Comprehensive work being completed will provide valuable information for the Donlin Gold LLC board and its owners to consider with respect to
Slide 21: Strong Institutional Shareholder and Management Support
NOVAGOLD STRONG INSTITUTIONAL SHAREHOLDER AND MANAGEMENT SUPPORT The10 largest shareholders represent 65.7% of shares issued and outstanding1 Executive Officers’ ownership has increased to ~2.8 million2 shares since joining the company 65.7 % 34.3% top 10 shareholders 25.3% Electrum Strategic Resour
Slide 22: Appendix
Appendix 22 NOVAGOLD
Slide 23: 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 24: 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 25: Donlin Gold S-K 1300 Technical Report Summary
DONLIN GOLD S-K 1300 Technical Report Summary – 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
Slide 26: 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 Pollutan
Slide 27: 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 28: Endnotes
ENDNOTES SLIDE 5 – Why invest in NOVAGOLD? SLIDE 8- The next big gold discovery could be at Donlin Gold 1. NOVAGOLD sold its 50% ownership of the Galore Creek project to Newmont in 2018. Deferred 1. Represents measured and indicated mineral resources previously reported by NOVAGOLD and compensation
Slide 29: Endnotes
ENDNOTES SLIDE 17 – 2023 Second quarter operating performance SLIDES 23 & 24- Mineral reserves and Mineral resources 1. Includes interest income, interest expense, accretion income, mark-to-market adjustment of marketable 1. Mineral Reserves are reported within the pre-feasibility pit designs, and s
Slide 30: 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