Novagold Resources Inc. · AMEX:NG
Novagold Resources — Bloor Street Capital Webcast and Conference Call (October 2020)
30 slides from Novagold Resources's conference presentation, Oct 28, 2020
Slide 1: NOVAGOLD Resources Inc. Corporate Presentation
NOVAGOLD Resources Inc. Corporate Presentation TSX, NYSE American: NG | novagold.com | October 28, 2020
Slide 2: Bloor Street Capital Webcast and Conference Call Attendees
Bloor Street Capital Webcast and Conference Call Attendees Introduction James Connor (Principal, Bloor Street Capital) An Overview of NOVAGOLD and a Donlin Gold Project Overview Greg Lang (President & Chief Executive Officer) Corporate Update and Gold Market Commentary Dr. Thomas Kaplan (Chairman) Q
Slide 3: Cautionary Statements
Cautionary Statements REGARDING FORWARD-LOOKING STATEMENTS This presentation includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable securities legislation, including the United States Private Securi
Slide 4: Donlin Gold is a Tier-One Asset in a Tier-One Jurisdiction
NOVAGOLD: Donlin Gold is a Tier-One Asset1 in a Tier-One Jurisdiction2 Unique asset with strong, investor-friendly attributes SIZE: 39,007,000 gold ounces contained in measured and indicated mineral resources3 GRADE: 2.24 g/t4, more than double the world average grade5 EXPLORATION POTENTIAL: Endowme
Slide 5: Largest Gold Development Project in its Category
DONLIN GOLD: Largest Gold Development Project in its Category1 A resource almost five times the size of the peer group average 50.0 2 8.2 40.0 39.0 Donlin Gold2 Moz 39.0 M&I Gold Resource (millions of ounces) 30.0 Moz peer group average1 20.0 18.8 11.7 11.5 10.0 10.0 8.0 6.5 5.6 5.3 5.0 4.2 3.8 0.0
Slide 6: Double the Industry Average Grade
DONLIN GOLD: Double the Industry Average Grade1 Among the world’s highest-grade known open-pit gold deposits 2.24 1.05 g/t g/t Donlin Gold average grade2 World average grade1 While industry average grades are declining, Donlin Gold’s grade provides resilience through commodity price cycles 1) 2019 a
Slide 7: Positioned to be One of the World's Largest Gold Mines
DONLIN GOLD: Positioned to be One of the World’s Largest Gold Mines Positioned to become a million-ounce gold producer1 1.1 1.60 Moz/yr1 1.40 0.3 1.502 Projected Annual Gold Production (millions of ounces) 1.20 Moz/yr3 1.00 0.80 Donlin Gold’s 27-year mine life North and South American gold- focused
Slide 8: One of the Few Large Gold Projects in a Safe Jurisdiction
DONLIN GOLD: One of the Few Large Gold Projects in a Safe Jurisdiction Top 10 gold producing operations comparison1 just three operations produced >1Moz in 2019 globally 39.0Moz 2 Donlin Gold 29.8Moz Olimpiada 29.3Moz 14.4Moz Kazzinc Carlin 48.2Moz 44.2Moz Lihir Island 21.1Moz Muruntau Cortez 25.0Mo
Slide 9: 2020 Drill Program Update
DONLIN GOLD: 2020 Drill Program Update Encouraging initial results 1 – further advancing the unique value proposition • Validating recent geologic and resource modeling concepts and testing for extensions of high-grade zones in both intrusive (igneous) and sedimentary rocks • Assay results show high
Slide 10: 2020 Drill Program Update Continued
DONLIN GOLD: 2020 Drill Program Update Continued Initial drill assays exceed modeled expectations with significant distinct high-grade intervals intercepted in multiple areas, including intervals near surface Ten of the Top Assay Intervals1 Hole From (Meters) To (Meters) Length (Meters) Au Grade (g/
Slide 11: Federal Permitting Completed and Update on State Permitting
DONLIN GOLD: Federal Permitting Completed and Update on State Permitting Key federal permits for the project received and state permitting is well advanced Federal Permitting Final Environmental Impact Statement (EIS) Joint Record of Decision (ROD) by the Corps and Bureau of Land Management Section
Slide 12: Better Together
DONLIN GOLD: Building Value for the Future Generations of Stakeholders HEALTH & SAFETY EDUCATION & ENVIRONMENTAL TRAINING STEWARDSHIP STAKEHOLDER CORPORATE ENGAGEMENT GOVERNANCE Better Together 12
Slide 13: Long-Term Native Corporation Partners
DONLIN GOLD: Long-Term Native Corporation Partners Native Corporations chose Donlin Gold project land for its valuable resource potential • Long-established Life-of-Mine agreements with Calista Corporation, who own the subsurface mineral rights, and The Kuskokwim Corporation (TKC), who own surface l
Slide 14: Project Catalysts
DONLIN GOLD: Project Catalysts Multi-generational sustainable economic opportunity • Complete drill program • Report drill assay results • Incorporate drill data into the latest model • The partners will determine the next steps to update the Donlin Gold feasibility study and initiate the engineerin
Slide 15: Maintaining a Strong Treasury
NOVAGOLD: Maintaining a Strong Treasury A healthy treasury to advance Donlin Gold to the next stage of development T R E A S U R Y P L A N N E D S P E N D I N G $126 cash and term deposit M $31 anticipated 2020 expenditures M balance on August 31, 2020 disclosed on January 22, 20202 G A L O R E C R
Slide 16: When I Speak About Donlin Gold, I Often Ask This Question
WHEN I SPEAK ABOUT DONLIN GOLD, I OFTEN ASK THIS QUESTION What other gold development-stage asset in the industry compares in its combination of… • Enormous size; • High grade for an open pit gold mine (and hence low all- in sustaining cash costs); • Truly superb exploration upside; • A production p
Slide 17: Gold: Decline in Discoveries and Grade as Global Production Peaks
GOLD: Decline in Discoveries and Grade as Global Production Peaks Mine supply is set to decline after years of increases • Existing mines are being depleted and grades are declining, while few new discoveries have been identified to replace them • Existing mine production at 26 of the world’s larges
Slide 18: Gold: Sharp Underinvestment Impedes Output Growth
GOLD: Sharp Underinvestment Impedes Output Growth In 2012, mining companies began implementing aggressive cost-cutting measures and curtailing expansion plans in an effort to protect margins, as shareholders abandoned growth stories in favor of maximizing returns from existing operations • Explorati
Slide 19: With Only 5% of Area Claims Explored, There's Room to Grow
DONLIN GOLD: With Only 5% of Area Claims Explored, There’s Room to Grow Future exploration potential along the 8 km-long mineralized trend 19
Slide 20: The New Carlin? The Next Big Gold Discovery Could be at Donlin
DONLIN GOLD: The New Carlin? The Next Big Gold Discovery Could be at Donlin Gold Substantial exploration potential along the 8 km-long mineralized trend, located on less than 5% of Donlin Gold’s land position • From 2006 to 2011, M&I resources increased 135% (16.6Moz1 to 39.0Moz2) through a well-exe
Slide 21: Gold Commentary: Bullish Conviction is no Longer a Rarity
GOLD COMMENTARY: Bullish Conviction is no Longer a Rarity “Gold is evolving into a “must-have” asset.” Mohamed A. El-Erian, Chief Economic Advisor, Allianz, August 11, 2020 “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] go
Slide 22: Gold: Supply Decreases as Demand Pressure Increases
GOLD: Supply Decreases as Demand Pressure Increases DEMAND DRIVERS S U P P LY P R E S S U R E S asset diversification dwindling discovery rates historic safe-haven inadequate exploration appeal budgets currency debasement decreasing ore grades protection central bank purchasing rising production cos
Slide 23: Leverage Where it Counts…and That You Can Keep
DONLIN GOLD: Leverage Where it Counts…and That You Can Keep Net Present Value (NPV) (US$ in Billions) NPV at 0% NPV at 5% 27.0B $2,500 19.2B $2,000 14.6B Donlin Gold NPV1 Gold Price (US$ per oz) $1,700 increases ~20x with ~2x $1,500 11.6B increase in gold price 8.2B $1,300 $0.0 $5.0 $10.0 $15.0 $20.
Slide 24: Strong Institutional Shareholder and Management Support
NOVAGOLD: Strong Institutional Shareholder and Management Support o The 10 largest shareholders represent 58.5% of shares issued and outstanding1 o Named Executive Officers’ share ownership has increased to 2,473,3762 since joining the Company 25.7% Electrum Strategic Resources LP & affiliates 7.5%
Slide 25: Year-To-Date Share Price Performance Versus Major Gold Indices
NOVAGOLD: Year-To-Date Share Price Performance Versus Major Gold Indices1 Substantial share price recovery since August – up approximately 35% 60.0% NOVAGOLD GDX 40.0% GDXJ 20.0% $10.88 Oct. 20 - (20.0%) $8.18 Aug. 11 (40.0%) (60.0%) 1. YTD share price performance against GDX and GDXJ gold indices a
Slide 26: Donlin Gold is a Tier-One Asset in a Tier-One Jurisdiction
NOVAGOLD: Donlin Gold is a Tier-One Asset1 in a Tier-One Jurisdiction2 Unique asset with strong, investor-friendly attributes SIZE: 39,007,000 gold ounces contained in measured and indicated mineral resources3 GRADE: 2.24 g/t4, more than double the world average grade5 EXPLORATION POTENTIAL: Endowme
Slide 27: Appendix
Appendix
Slide 28: Top Recent Investor Questions & Answers
NOVAGOLD: Top Recent Investor Questions & Answers Topic Answer Donlin Gold Feasibility Donlin Gold was considered technically and economically feasible in the 2012 Second Updated Feasibility Study (FSU2). With 39 million ounces of contained gold in measured and indicated mineral resources inclusive
Slide 29: Mineral Reserves & Mineral Resources
NOVAGOLD: Mineral Reserves & Mineral Resources Donlin Gold (100% basis)* Tonnage Grade Metal content * Mineral reserves and resources are reported on a GOLD kt g/t Au koz Au 100% basis. NOVAGOLD and Barrick each own 50% of the Reserves(1) Donlin Gold project. Proven 7,683 2.32 573 Donlin Gold approx
Slide 30: NOVAGOLD Resources Inc. Contact Details
NOVAGOLD RESOURCES INC. Suite 1860 – 400 Burrard Street Mélanie Hennessey Vancouver, BC, Canada V6C 3A6 VP, Corporate Communications T: 604 669 6227 melanie.hennessey@novagold.com TF: 1 866 669 6227 F: 604 669 6272 Jason Mercier www.novagold.com Manager, Investor Relations info@novagold.com jason.me
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