Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q1 2021 Earnings Presentation
25 slides from Novagold Resources's earnings presentation, Apr 1, 2021
Slide 1: 2021 First-Quarter Financial Results & Project Update
2021 First-Quarter Financial Results & Project Update TSX, NYSE American: NG | novagold.com | April 1, 2021
Slide 2: First-Quarter 2021 Webcast and Conference Call Agenda
First-Quarter 2021 Webcast and Conference Call Agenda Introduction Mélanie Hennessey (Vice President, Corporate Communications) First-Quarter Update Greg Lang (President & Chief Executive Officer) First-Quarter Financials David Ottewell (Vice President & Chief Financial Officer) Closing Remarks Greg
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: 39,000,000 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: Donlin Gold: 2021 Activity Highlights to Date
DONLIN GOLD: 2021 Activity Highlights to Date Completed successful 2020 drill program with impressive assay drill results1 Drill Program • Announced the remaining assay drill results in March for the 85-hole, 23,361- meter drill program at Donlin Gold, which demonstrated higher drilled grade- thickn
Slide 6: Donlin Gold: 2020 Drill Program Top Significant Intervals
DONLIN GOLD: 2020 Drill Program Top 10 Significant Intervals Assay results from the 2020 dill program are complete1 DC20-1903 DC20-1932 • The 85-hole drill program, totaling 23,361 meters in the 8.14 m at 45.3 g/t, including a 47.66 m at 4.8 g/t, including a proposed ACMA and Lewis pit areas, was su
Slide 7: Donlin Gold: Permitting Update
DONLIN GOLD: Permitting Update 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 10/404 (wetlands) permit and BLM Offer to
Slide 8: Donlin Gold: COVID-19
DONLIN GOLD: COVID-19 Keeping our workforce healthy and safe The State of Alaska is currently among the leaders in the United States in COVID-19 vaccination availability, with Governor Dunleavy announcing in early March that vaccinations are now available to everyone aged 16 and older living and wor
Slide 9: 2021 First-Quarter Community Engagement
DONLIN GOLD: 2021 First-Quarter Community Engagement Expanding upon long-term relationships throughout the Y-K region Ice Road • In partnership with TKC, the Village of Crooked Creek, and Napaimute Tribe, Donlin Gold was the lead sponsor of a project to construct and maintain the upper portions of a
Slide 10: Long-Term Native Corporation Partners
DONLIN GOLD: Long-Term Native Corporation Partners The Donlin Gold project location was specifically selected for its resource development potential • The Alaska Native Claims Settlement Act1 (ANSCA) of 1971 resolved Alaska Native land claims, allotting 44 million acres for land use to Native Corpor
Slide 11: Native Corporation Leaders on Donlin Gold Partnership
“The Kuskokwim Corporation, TKC, has been involved every step of the way, in not only inviting Donlin Gold onto our land, but also in writing the permits, in environmental oversight, and really ensuring that this is the best possible project on our land to provide those opportunities for our shareho
Slide 12: NOVAGOLD: 2021 Operating Performance
NOVAGOLD: 2021 Operating Performance First Quarter First Quarter (US$ millions) 2021 2020 General and administrative1 $5.3 $4.7 Donlin Gold 2.0 1.6 Operating loss 7.3 6.3 Other (income) expense, net2 0.7 — Income tax expense — 0.3 Net loss $8.0 $6.6 1) Includes share-based compensation expense of $2
Slide 13: NOVAGOLD: 2021 Cash Flow
NOVAGOLD: 2021 Cash Flow First Quarter First Quarter (US$ millions) 2021 2020 General and administrative1 $(3.3) $(2.9) Donlin Gold funding (2.9) (2.6) Working capital, interest and other (0.8) (0.6) Withholding tax on share-based compensation (0.7) (1.7) Decrease in cash and term deposits (7.7) (7.
Slide 14: NOVAGOLD: Maintaining a Strong Treasury
NOVAGOLD: Maintaining a Strong Treasury A healthy treasury to advance Donlin Gold to the next stage of development $ 31-35M BUDGET anticipated 2021 expenditures 114M 75M disclosed on January 27, 20211 $ $ TREASURY cash and term deposit balance receivable from on February 28, 2021 Newmont in July 202
Slide 15: Largest Gold Development Project in its Category
DONLIN GOLD: Largest Gold Development Project in its Category1 A resource more than four times the size of the peer group average 50.0 40.0 39.0 2 Donlin Gold2 8.4 Moz 39.0 Moz M&I Gold Resource (millions of ounces) 30.0 peer group average1 20.0 18.8 11.7 11.5 11.3 10.9 10.0 10.0 8.2 8.1 8.0 6.3 5.0
Slide 16: 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 1.12 g/t Donlin Gold average grade2 Global average grade1 While global average gold grades are declining, Donlin Gold’s grade provides resilience through commodity price cycles 1)
Slide 17: 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 1.80 1.60 1.1 Moz/yr1 1.40 0.3 Projected Annual Gold Production (millions of ounces) 1.502 Moz/yr3 1.20 1.00 0.80 Donlin Gold’s 27-year mine life North and South American gold- foc
Slide 18: One of the Largest Gold Projects in a Safe Jurisdiction
DONLIN GOLD: One of the Largest Gold Projects in a Safe Jurisdiction1 A comparison of the top three annual gold producing operations2 and the five largest development-stage gold projects3 ALASKA’S JURISDICTIONAL APPEAL 11.5Moz • Mineral potential Livengood 46.0Moz 1.2Moz Sukhoi Log • Established min
Slide 19: The Next Big Gold Discovery Could be at Donlin Gold
DONLIN GOLD: 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-executed exploratio
Slide 20: Project Catalysts
DONLIN GOLD: Project Catalysts Multi-generational sustainable economic opportunity • Integrate the 2020 drill program results into the geologic model • To complete the model update, additional confirmation and extension drilling are planned in 2021, focusing on the continuity and structural controls
Slide 21: Strong Institutional Shareholder and Management Support
NOVAGOLD: Strong Institutional Shareholder and Management Support The 10 largest shareholders represent 63.5% of shares issued and outstanding1 Named Executive Officers’ ownership has increased to 2,689,100 shares2 since joining the company 36.5% all other shareholders 63.5% top 10 shareholders 25.7
Slide 22: 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: 39,000,000 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 23: Appendix
APPENDIX NOVAGOLD
Slide 24: NOVAGOLD: Mineral Reserves & Mineral Resources
NOVAGOLD: Mineral Reserves & Mineral Resources Donlin Gold (100% basis)* Tonnage Grade Metal content GOLD kt g/t Au koz Au * Mineral reserves and resources are reported on a Reserves1 100% basis. NOVAGOLD and Barrick each own 50% of the Proven 7,683 2.32 573 Donlin Gold project. Probable 497,128 2.0
Slide 25: 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