Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q1 2025 Earnings Presentation
33 slides from Novagold Resources's earnings presentation, Apr 1, 2025
Slide 1: 2025 First Quarter Report & Donlin Gold Update
2025 First Quarter Report & Donlin Gold Update April 1, 2025 TSX, NYSE AMERICAN: NG | NOVAGOLD.COM
Slide 2: 2025 First Quarter Webcast & Conference Call Agenda
Introduction Mélanie Hennessey Vice President, Corporate Communications 2025 FIRST QUARTER First Quarter Update WEBCAST & CONFERENCE Greg Lang CALL AGENDA President & Chief Executive Officer First Quarter Financials Peter Adamek Vice President & Chief Financial Officer Generational asset with strong
Slide 3: Cautionary Statements Regarding Forward-Looking Statements
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS This presentation includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) looking statements contained herein reflect the beliefs, opinions and projections of NOVAGOLD on th
Slide 4: Why NOVAGOLD?
WHY NOVAGOLD? Greg Lang President & Chief Executive Officer 4 NOVAGOLD | 2025 First Quarter Report & Donlin Gold Update
Slide 5: Donlin Gold is simply unique in the North American gold space
WHY NOVAGOLD ? DONLIN GOLD IS SIMPLY UNIQUE IN THE NORTH AMERICAN GOLD SPACE IN ITS RARE COMBINATION OF KEY ATTRIBUTES: 1 Production Profile Potential to produce 1.1 Moz annually over 27 years1 at cash costs in the lower half of the industry’s cost range 2 High-Grade at Scale 39 Moz gold contained i
Slide 6: Positioned to become a million-ounce gold producer
1 PRODUCTION PROFILE POSITIONED TO BECOME A MILLION-OUNCE GOLD PRODUCER 1.13 Anticipated to be one of the highest 1.03 annual gold producers in the Americas 0.44 0.42 Select gold-focused development projects in 0.38 the Americas as shown in the accompanying chart 0.32 0.31 0.42 Moz/yr 1 Donlin Gold
Slide 7: Has more than double the global average gold grade
2 HIGH-GRADE AT SCALE HAS MORE THAN DOUBLE THE GLOBAL AVERAGE GOLD GRADE Among the world’s highest-grade known open-pit gold deposits 1 Donlin Gold’s grade provides resilience through commodity price cycles 2 See endnote for this slide in Appendix See Mineral Reserves & Mineral Resources table in Ap
Slide 8: Significant potential to expand current resource at depth and along strike
3 EXPLORATION UPSIDE SIGNIFICANT POTENTIAL TO Far Side EXPAND CURRENT Ophir RESOURCE AT DEPTH AND Dome ALONG STRIKE Quartz Snow Queen The next big gold discovery could be at Donlin Gold ▪ A total of 39 Moz1 (100% basis) have Lewis Pit been defined in the ACMA and Lewis pits with approximately 1,400
Slide 9: Alaska: world-leading mining jurisdiction
4 JURISDICTIONAL SAFETY ALASKA: WORLD-LEADING MINING JURISDICTION ▪ 2nd largest gold-producing state in the U.S.1 ▪ Alaska ranks 13th best out of 117 mining jurisdictions on the Global Investment Risk Index. Manh Choh One of only 13 mining jurisdictions to receive a AA rating in 2024 (No AAA ratings
Slide 10: Longstanding partnerships with Alaska Native Corporations
5 PARTNERSHIPS Donlin Gold is located on private land LONGSTANDING PARTNERSHIPS WITH owned by Native Corporations, which was designated by law for mining ALASKA NATIVE CORPORATIONS activities five decades ago A generational opportunity Calista Corporation: The Kuskokwim Corporation: ▪ Calista board
Slide 11: Permitting is largely complete
6 PERMITTING PERMITTING IS LARGELY COMPLETE Key Federal permits for the Donlin Gold project are in hand, State permitting is on-track Federal Permitting Completed State Permitting Completed ✓ Final Environmental Impact Statement (EIS)1 ✓ Air Quality Joint Record of Decision (ROD) by the U.S. Army Co
Slide 12: Committed to ecological stewardship, people, communities and good governance
7 COMMITMENT TO ESG COMMITTED TO ECOLOGICAL STEWARDSHIP, THE WELL-BEING OF OUR PEOPLE AND COMMUNITIES, AND GOOD GOVERNANCE NOVAGOLD’s 2023 sustainability performance NOVAGOLD 12 NOVAGOLD | 2025 First Quarter Report & Donlin Gold Update To view the full report, visit https://www.novagold.com/sustaina
Slide 13: Industry veterans and experts with a track record of success
8 EXPERIENCED TEAM INDUSTRY VETERANS AND EXPERTS WITH A TRACK RECORD OF SUCCESS Over 135 Years of Combined Mining Sector Experience ▪ Experienced management team, most of whom joined NOVAGOLD from major mining companies ▪ Comprehensive knowledge in building and operating large open-pit and undergrou
Slide 14: Strong institutional shareholder support
9 SHAREHOLDER SUPPORT STRONG INSTITUTIONAL SHAREHOLDER SUPPORT 70.2% The 10 largest shareholders hold 70% of shares issued and outstanding1 TOP 10 SHAREHOLDERS 25.4% Electrum Strategic Resources LP & affiliates 8.1% Paulson & Co. Inc. 29.8% 7.8% First Eagle Investment Management, LLC 6.1% BlackRock,
Slide 15: Extraordinary leverage to gold in a place where one can keep it
WHY NOVAGOLD? EXTRAORDINARY LEVERAGE TO GOLD IN A PLACE WHERE ONE CAN KEEP IT1 NPV at 5% NPV at 0% 50.0B $50 $45 40.8B $40 Net Present Value (NPV) (US$ in billions) $35 31.6B $30 $25 22.5B 19.1B $20 17.5B 15.2B $15 13.1B 11.2B 8.8B 7.2B $10 4.9B 3.0B $5 1.2B $0 $1,300 $1,500 $1,700 $2,000 $2,500 $3,
Slide 16: 2025 First Quarter Highlights
2025 FIRST QUARTER HIGHLIGHTS 16 NOVAGOLD | 2025 First Quarter Report & Donlin Gold Update
Slide 17: 2025 First Quarter Highlights
DONLIN GOLD Extensive technical work, environmental 2025 FIRST QUARTER HIGHLIGHTS initiatives, and engagement throughout Technical Work: the Yukon-Kuskokwim region – Commenced 2025 field program with camp opening in February, followed by the start of drilling in March – A total of 15,000 m of drilli
Slide 18: Donlin Gold activities cont.
2025 HIGHLIGHTS DONLIN GOLD ACTIVITIES CONT. Providing support for efficient issuance of remaining State permits and litigation defense State permitting and litigation Federal litigation ▪ Submitted preliminary design packages for the Dam Safety Certification to ▪ In the Federal lawsuit challenging
Slide 19: 2025 First Quarter Financial Results
2025 FIRST QUARTER FINANCIAL RESULTS Peter Adamek Vice President & Chief Financial Officer 19 NOVAGOLD | 2025 First Quarter Report & Donlin Gold Update
Slide 20: Q1 2025 Operating Performance
NOVAGOLD Q1 2025 OPERATING PERFORMANCE Three months ended (US$ millions) February 28, 2025 February 29, 2024 General and administrative1 $4.8 $6.2 Equity loss – Donlin Gold 2.3 3.0 Operating loss 7.1 9.2 Interest expense on promissory note 3.5 3.6 Interest income (1.0) (1.6) Other (income) / expense
Slide 21: Q1 2025 Cash Flow
NOVAGOLD Q1 2025 CASH FLOW Three months ended (US$ millions) February 28, 2025 February 29, 2024 General and administrative1 $(3.8) $(3.9) Donlin Gold funding (3.6) (3.6) Proceeds from disposal of investments/sale of property 1.0 0.7 Working capital, interest and other (1.8) (1.4) Decrease in cash a
Slide 22: Maintaining a strong treasury
2025 FIRST QUARTER FINANCIAL RESULTS MAINTAINING A STRONG TREASURY Treasury1 $100 (US$ millions) $80 Actual Forecast 2025 Spending (US$ millions) Year-to-date Full Year $60 $40 $93 Corporate G&A2 $3.8 $16.0 Donlin Gold project expenditures3 3.6 21.5 $20 Total $7.4 $37.5 $0 See endnotes for this slid
Slide 23: 2025 Activities & Upcoming Catalysts
2025 CATALYSTS 2025 ▪ 2025 Donlin Gold budget $43M (100% basis): – Camp operations with grid drilling to further develop ACTIVITIES & modifying factors and input parameters for mine planning – Updated mine planning UPCOMING – Geotechnical engineering and geosciences closure planning – Project planni
Slide 24: Donlin Gold is simply unique in the North American gold space
WHY NOVAGOLD ? DONLIN GOLD IS SIMPLY UNIQUE IN THE NORTH AMERICAN GOLD SPACE IN ITS RARE COMBINATION OF KEY ATTRIBUTES: 1 Production Profile Potential to produce 1.1 Moz annually over 27 years1 at cash costs in the lower half of the industry’s cost range 2 High-Grade at Scale 39 Moz gold contained i
Slide 25: Appendix
APPENDIX 25 NOVAGOLD | 2025 First Quarter Report & Donlin Gold Update
Slide 26: Mineral Reserves
APPENDIX MINERAL RESERVES Attributable to Donlin Gold Tonnage Grade Metal content NOVAGOLD *Mineral reserves and mineral resources are GOLD kt g/t Au koz Au koz Au reported on a 100% basis and on a 50% basis. Reserves1 NOVAGOLD and Barrick each own 50% of the Donlin Gold project. Proven 7,683 2.32 5
Slide 27: Mineral Resources
APPENDIX MINERAL RESOURCES Attributable to Donlin Gold Tonnage Grade Metal content NOVAGOLD *Mineral reserves and mineral resources are GOLD kt g/t Au koz Au koz Au reported on a 100% basis and on a 50% Resources2, exclusive of Reserves basis. NOVAGOLD and Barrick each own 50% of the Donlin Gold pro
Slide 28: Donlin Gold
APPENDIX DONLIN GOLD 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 operations 16.70 2.59 278 Average annual gold production Processing operations 13.70 2.12 228 LOM
Slide 29: Management
APPENDIX MANAGEMENT Greg Lang ▪ Former President of Barrick Gold North America Mélanie Hennessey ▪ 20 years of experience in financial markets, President ▪ 40+ years of experience building & operating major VP, Corporate corporate governance, Indigenous relations, & CEO open-pit and underground mine
Slide 30: Board of Directors
DONLIN GOLD BOARD OF DIRECTORS Dr. Thomas Hume ▪ Chairman and CEO of The Electrum Group LLC, a privately held Kaplan natural resources investment management company that Kyle ▪ Former Executive VP and CFO of Dundee Precious Metals Serves as director of Plum Acquisition Corp. III Chairman controls a
Slide 31: Endnotes
APPENDIX ENDNOTES SLIDE 5 and 24 – Donlin Gold is simply unique in the North American gold space in its rare combination of key SLIDE 8 – Significant potential to expand current resource at depth and along strike attributes 1. Represents 100% of measured and indicated resources, inclusive of mineral
Slide 32: Endnotes
APPENDIX ENDNOTES SLIDE 15 – Extraordinary leverage to gold in a place where one can keep it and freight charges of $1.21/oz gold; royalty considerations of 4.5% NSR and $0.50/t processed; and variable pit slope angles, ranging from 23° to 43°. Mineral Reserves are reported using an optimized block
Slide 33: NOVAGOLD Resources Inc.
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 Frank Gagnon F: 604 669 6272 Manager, Investor Relations E: info@novagold.com frank.gagnon@novagold.com