Novagold Resources Inc. · AMEX:NG
Novagold Resources — Shareholder Meeting (May 2016)
30 slides from Novagold Resources's shareholder meeting presentation, May 13, 2016
Slide 1: 2016 Annual General Meeting of Shareholders
2016 Annual General Meeting of Shareholders NYSE-MKT, TSX: NG | May 13, 2016 novagold.com
Slide 2: Speakers
SPEAKERS Thomas Kaplan, Chairman Opening Remarks Gregory Lang, President & Chief Executive Officer Company Overview David Ottewell, Vice President & Chief Financial Officer Official Business of the Meeting 2
Slide 3: Cautionary Statements Regarding Forward-Looking Statements
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS This presentation includes certain “forward-looking statements” within the meaning of applicable securities laws, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historic
Slide 4: Market Environment: Gold
MARKET ENVIRONMENT: GOLD RENEWAL OF GOLD’S LONG-TERM UPTREND DOESN’T REQUIRE ANY SPECIFIC EVENT – IT WILL JUST HAPPEN ONE DAY “Gold is a currency. We have dollars, we have euros, we have yen and we have gold. If you don’t have [10% of your assets in] gold, there is no sensible reason other than that
Slide 5: Market Environment: Gold
MARKET ENVIRONMENT: GOLD DONLIN GOLD HAS CONTINUED PROGRESSING AT ITS NATURAL PACE – REFERRED TO AS “THE TORTOISE AND THE HARE” PHENOMENON > Quality is plunging, the best ore has already been mined > Time from discovery to production can take up to 20+ years > On the demand side, gold still a favore
Slide 6: The NOVAGOLD Opportunity
THE NOVAGOLD OPPORTUNITY Safe Geo-Political Environment: Strong Balance Sheet: Alaska and British Columbia, $117m cash + term deposits top-rated mining jurisdictions as of February 29, 2016 Accomplished Leadership Team: focused on execution Top Tier Assets: 185 years cumulative experience and delive
Slide 7: What Makes NOVAGOLD Unique?
WHAT MAKES NOVAGOLD UNIQUE? A DEVELOPMENT-STAGE COMPANY WITH TWO PROJECTS OF EXCEPTIONAL SCALE, QUALITY, AND JURISDICTIONAL SAFETY DONLIN GOLD 50/50 with Barrick Poised to become one of the largest gold producers in the world Location: Southwest Alaska GALORE CREEK 50/50 with Teck Expected to be the
Slide 8: 2015 Achievements
2015 ACHIEVEMENTS SIGNIFICANT PROGRESS ON ALL FRONTS – EXECUTING ON STATED STRATEGY Reached major permitting milestone Draft Environmental Impact Statement published by the U.S. Army Corps of Engineers Advanced Galore Creek mine planning and project design Continued in depth engagement with local co
Slide 9: 2016 Activities & Milestones
2016 ACTIVITES & MILESTONES UNWAVERING COMMITMENT TO DELIVERING VALUE BY PRESERVING BEST GOLD OPTIONALITY Advance Donlin Gold permitting toward a construction/production decision Maintain strong relationships with all stakeholders Conduct Galore Creek optimization studies Safeguard our treasury Mone
Slide 10: Donlin Gold: The Right Project
DONLIN GOLD: THE RIGHT PROJECT ARGUABLY THE MOST IMPORTANT GOLD PROJECT IN THE WORLD TODAY Size Partnerships Among the largest present and/or Strong partnerships with local future gold mines in the world stakeholders Jurisdiction Grade High-grade open-pit mine Donlin Gold Located in Alaska, one of t
Slide 11: Donlin Gold: A Large High-Grade Gold Project
DONLIN GOLD: A LARGE HIGH-GRADE GOLD PROJECT AMONG THE WORLD’S MOST SIGNIFICANT AND HIGHEST-GRADE GOLD DEPOSITS 1 1,2 Notes: 1) Shown on 100% project basis, of which NOVAGOLD holds a 50% interest 2) Measured and indicated resources inclusive of proven and probable reserves. See “Cautionary Note Conc
Slide 12: Projected Annual Gold Production
DONLIN GOLD: THE EMERGING TOP-TIER PRODUCER IN THE SAFEST JURISDICTION A REMARKABLE RESOURCE AMONG EMERGING OPEN-PIT GOLD DEPOSITS 45.0 40.0 35.0 Donlin Gold’s size and projected production profile clearly 30.0 distinguish it from its peers (millions of ounces) M&I Gold Resource 25.0 20.0 39.0 15.0
Slide 13: Mines the Size of Donlin Gold Are Scarce
MINES THE SIZE OF DONLIN GOLD ARE SCARCE ONLY SIX MINES/PROJECTS IN THE WORLD ARE SLATED TO PRODUCE >1 MOZ/YEAR DONLIN GOLD USA MURUNTAU2 Uzbekistan ▸ 1.5 Moz/year in first five full years1 GRASBERG ▸ 1.1 Moz/year LOM1 Indonesia Only undeveloped asset in PUEBLO VIEJO3 this category in Dominican Repu
Slide 14: Donlin Gold: Double the Grade of the Average Gold Deposit
DONLIN GOLD: IS DOUBLE THE GRADE OF THE AVERAGE GOLD DEPOSIT IN THE WORLD DONLIN GOLD’S HIGH GRADE ENDOWMENT PROVIDES RESILIENCE TO GOLD PRICE CYCLES Donlin Gold Average Grade2: World Average Grade1: 2.24 g/t 1.12 g/t Industry average grades are declining and sources for emerging production are incr
Slide 15: Donlin Gold: Excellent Exploration Potential
DONLIN GOLD: EXCELLENT EXPLORATION POTENTIAL MULTIPLE DRILL PROSPECTS AND TARGETS EXIST ALONG 8KM TREND The next big gold discovery? > Potential to expand current open-pit resources along strike and at depth > Good prospects to discover meaningful deposits outside current mine footprint • Reserves a
Slide 16: Significant Value Upside with Higher Gold Prices
DONLIN GOLD: SIGNIFICANT VALUE UPSIDE WITH HIGHER GOLD PRICES NPV INCREASES ~20X WITH ~2X INCREASE IN GOLD PRICE NPV after-tax (US$ in millions) 30,000 > Project has a positive return that increases substantially with higher gold prices 25,000 27year 27.0B mine life > Good payback at a broad range o
Slide 17: Donlin Gold: Committed Partners Advancing the Project
DONLIN GOLD: COMMITTED PARTNERS ADVANCING THE PROJECT JOINT AND DEDICATED EFFORT TO COMPLETE THE EIS PROCESS BY BARRICK AND NOVAGOLD “The Donlin Gold project has the potential to become a world class asset for Barrick and for our partner NOVAGOLD. We would like nothing more than to see this potentia
Slide 18: Donlin Gold: Leverage in a Place Where You Can Keep the Rewards
DONLIN GOLD: LEVERAGE IN A PLACE WHERE YOU CAN KEEP THE REWARDS LOCATION, LOCATION, LOCATION “It is that rare “unicorn” that is located in a safe part of the world where an investor can tread without fear. As such, Donlin Gold represents for us the optimal way to invest in the space: that is, to see
Slide 19: Life of Mine Agreements with Alaska Native Corporations
DONLIN GOLD: LIFE OF MINE AGREEMENTS WITH ALASKA NATIVE CORPORATIONS STRONG AND TIME-HONORED RELATIONSHIPS WITH STAKEHOLDERS Donlin Gold has the support of the land owners through a 20+ year relationship “Donlin Gold has taken great strides in planning a “Our shareholders have already seen great ben
Slide 20: Project Permitting Is on Track
DONLIN GOLD: PROJECT PERMITTING IS ON TRACK DRAFT ENVIRONMENTAL IMPACT STATEMENT RECENTLY PUBLISHED EIS TIMELINE: August 2012 2017 Final EIS Permit Notice of Public Preliminary Draft EIS Draft EIS Public Record of Decision Applications Intent Scoping Comment Permit Issuance Period Submitted Submitte
Slide 21: Public Comment Period
DONLIN GOLD: PUBLIC COMMENT PERIOD WELCOMING INPUT FROM LOCAL STAKEHOLDERS: YOUR VOICE MATTERS “We do support the Donlin Gold mine because they “I read just a little bit a while ago about how Donlin have kept their word...after these boys and girls Gold is going to negatively impact our subsistence
Slide 22: Galore Creek: A Significant Copper-Gold-Silver Asset
GALORE CREEK: A SIGNIFICANT COPPER-GOLD-SILVER ASSET POTENTIAL TO BE ONE OF THE LARGEST, HIGHEST-QUALITY, LOWEST-COST COPPER PRODUCERS IN CANADA M&I RESOURCES1 copper 9 Blbs Grade: 0.50% gold 8 Moz Grade: 0.31 g/t silver 136 Moz Grade: 5.21 g/t 1) Represents 100% of measured and indicated resources
Slide 23: Clear Focus and Strong Funding to Execute on All Fronts
CLEAR FOCUS AND STRONG FUNDING TO EXECUTE ON ALL FRONTS SUFFICIENT CASH ON HAND TO PROGRESS DONLIN GOLD THROUGH PERMITTING $117M in cash and term deposits1 2016 Budget Donlin Gold $9M Galore Creek $1M G&A, interest & Donlin Gold joint studies $15M TOTAL $25M 1) Includes $80 million in term deposits
Slide 24: Why Invest in NOVAGOLD?
WHY INVEST IN NOVAGOLD? EXCELLENT SHAREHOLDER BASE APPRECIATES SUPERIOR LEVERAGE “With so many macro- and micro- 26.5% economic factors pointing to a more Electrum Strategic robust price environment than we Resources LP see today, investors in NOVAGOLD should be well-positioned to derive a lot of va
Slide 25: Appendix
APPENDIX novagold.com
Slide 26: NOVAGOLD: The Management Team
NOVAGOLD: THE MANAGEMENT TEAM INDUSTRY LEADERS TO BRING DONLIN GOLD THROUGH PERMITTING & BEYOND > Former President of Barrick Gold North America Gregory Lang > 35 years experience building & operating major open-pit and underground mines President & CEO (Goldstrike, Cortez, Turquoise Ridge, Bald Mou
Slide 27: NOVAGOLD: The Board of Directors
NOVAGOLD: THE BOARD OF DIRECTORS > Chairman and CIO of The Electrum Group LLC, a privately held natural resources Dr. Thomas Kaplan investment management company that controls a diversified portfolio of precious and Chairman base metals assets > Former Chief Legal Officer and Corporate Secretary wit
Slide 28: NOVAGOLD: Reserve/Resource Table
NOVAGOLD: RESERVE/RESOURCE TABLE Donlin Gold* Tonnage (100%) Grade (100%) Metal (100%) NOVAGOLD Share (50% ) GOLD Mt g/t Au koz Au koz Au Reserves1 Proven 7.7 2.32 573 286 Probable 497.1 2.08 33,276 16,638 P&P 504.8 2.09 33,849 16,924 Resources3, inclusive of Reserves Measured 7.7 2.52 626 313 Indic
Slide 29: NOVAGOLD: Reserve/Resource Table (Con't)
NOVAGOLD: RESERVE/RESOURCE TABLE (CON’T) Notes: a. These reserve and resource estimates have been prepared in accordance with NI 43-101 and the CIM Definition Standard, unless otherwise noted. b. See numbered footnotes below on resource information. c. Rounding and significant figures may result in
Slide 30: Contact Us
CONTACT US NOVAGOLD RESOURCES INC. Suite 720 – 789 West Pender Street Vancouver, BC Canada V6C 1H2 T 604 669 6227 TF 1 866 669 6227 F 604 669 6272 www.novagold.com info@novagold.com Mélanie Hennessey Erin O’Toole VP, Corporate Communications Analyst, Investor Relations melanie.hennessey@novagold.com