Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q3 2023 Earnings Presentation
34 slides from Novagold Resources's earnings presentation, Oct 4, 2023
Slide 1: 2023 Third Quarter Financial Results and Donlin Gold Update
2023 Third Quarter Financial Results and Donlin Gold Update October 4, 2023 TSX, NYSE American: NG | novagold.com
Slide 2: Third Quarter 2023 webcast & conference call agenda
Introduction Third Quarter Mélanie Hennessey Vice President, Corporate Communications 2023 webcast Investment Thesis & 2023 Third Quarter Update & conference call Greg Lang President & Chief Executive Officer agenda 2023 Third Quarter Financials David Ottewell Vice President & Chief Financial Office
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 NOVAGOLD | 2023 Third Quarter Financial Results
Slide 5: Donlin Gold: A Tier-One Asset in a World-Leading Jurisdiction
DONLIN GOLD: A TIER-ONE ASSET IN A WORLD-LEADING JURISDICTION Generational asset with strong, investor-friendly attributes SIZE GRADE EXPLORATION POTENTIAL 39Moz gold contained 2.24 g/t Au², more Endowment is contained within three in measured and than double the kilometers of an eight- kilometer- i
Slide 6: Advancing the Donlin Gold Project Up the Value Chain
NOVAGOLD ADVANCING THE DONLIN GOLD PROJECT UP THE VALUE CHAIN Unlocking value from a pure play on what we and some of our largest shareholders regard as the most exciting development project in the gold industry globally Successful strategic repositioning as a pure gold play Steady advancement of Do
Slide 7: Alaska: World-Leading Mining Jurisdiction
DONLIN GOLD ALASKA: WORLD-LEADING MINING JURISDICTION 2nd largest gold-producing state in the U.S. Well-defined state permitting process $4.5B value of non-fuel mineral production in Alaska (6th highest in U.S.)¹ (Donlin Gold community employees not included) $2.6B allotted to Alaska from U.
Slide 8: ESG Performance (Fiscal Year 2022)
NOVAGOLD ESG PERFORMANCE (Fiscal Year 2022) Committed to Responsible and Economic Development in Alaska’s Y-K Region (Scope 1) 8 NOVAGOLD | 2023 Third Quarter Financial Results
Slide 9: 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 1.03 1.00 Donlin Gold’s Projected annual gold production (millions of ounces) 27-year mine life 1.13 0.80 Moz/yr1 0.60 0.42 0.36 0.38 0.40 0.40 0.31 0.32 0.3
Slide 10: 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 1.04 provides resilience through commodity price cycles g/t Global average grade1 Donlin Gold average grade2 Se
Slide 11: The Next Big Gold Discovery Could Be at Donlin Gold
DONLIN GOLD THE NEXT BIG GOLD DISCOVERY COULD BE AT DONLIN GOLD Significant potential to expand current resource at depth and along strike 8km Far Side From 2006 to 2011, M&I Queen resources increased 135% (16.6Moz1 to Snow Quartz Ophir ACMA Pit Dome 39.0Moz2 on 100% basis) Lewis Pit Gold resour
Slide 12: Extraordinary Leverage to Gold in a Place That You Can Keep It
DONLIN GOLD Gold will emerge as the asset class with the most EXTRAORDINARY LEVERAGE TO GOLD potential this decade, no matter the financial or IN A PLACE THAT YOU CAN KEEP IT geopolitical backdrop. – “The Upcoming Gold Bull Market: How High Will Gold Prices Go?” Goehring & Rozencwajg (August 31, 202
Slide 13: Alaska Native Corporation Partnerships Elevate the Project
DONLIN GOLD ALASKA NATIVE CORPORATION PARTNERSHIPS ELEVATE THE PROJECT Donlin Gold is situated on private land designated for mining activities five decades ago and holds life-of-mine agreements with Alaska Native Corporations Calista and TKC Calista Corporation Resource development “ The Donlin Gol
Slide 14: 2023 Third Quarter Highlights
2023 Third Quarter Highlights 14 NOVAGOLD | 2023 Third Quarter Financial Results
Slide 15: Third Quarter Activities
DONLIN GOLD THIRD QUARTER ACTIVITIES The 2023 field program successfully completed in July Donlin Gold 2023 field program Completion of comprehensive fieldwork and geotechnical drilling required to complete the Alaska Dam Safety certification applications Fieldwork to further define groundwater
Slide 16: Third Quarter Activities: Community Engagement
DONLIN GOLD THIRD QUARTER ACTIVITIES Considerable outreach and engagement activities throughout the Y-K region Community Engagement and investments In collaboration with Calista and The Kuskokwim Corporation, Donlin Gold achieved the following milestones in areas spanning education, health and safet
Slide 17: 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 ✓ Alaska Pollutant Discharge Elimination System ✓ Joint Record of Decis
Slide 18: Third Quarter Activities: State Permitting and Litigation
DONLIN GOLD THIRD QUARTER ACTIVITIES Providing Support in Permitting Process and Efficient Issuance of Remaining State Level Permits State permitting and litigation activities Air quality permit was reissued The second of the two Right-of-Way permit appeals was denied in Alaska Superior Court an
Slide 19: 2023 Third Quarter Financial Results
2023 Third Quarter Financial Results David Ottewell Vice President & Chief Financial Officer 19 NOVAGOLD | 2023 Third Quarter Financial Results
Slide 20: Q3 2023 Operating Performance
NOVAGOLD Q3 2023 OPERATING PERFORMANCE Three months ended August 31, Nine months ended August 31, (US$ millions) 2023 2022 2023 2022 General and administrative $5.2 $4.9 $16.4 $15.4 Donlin Gold 4.0 9.4 16.0 21.9 Operating loss 9.2 14.3 32.4 37.3 Interest expense on promissory note 3.4 2.2 9.6 5.4 Ac
Slide 21: Q3 2023 Cash Flow
NOVAGOLD Q3 2023 CASH FLOW Three months ended August 31, Nine months ended August 31, (US$ millions) 2023 2022 2023 2022 General and administrative1 $(3.0) $(2.8) $(9.9) $(9.1) Donlin Gold (2.5) (8.4) (15.2) (24.9) Working capital, interest and other 1.6 0.8 4.3 (1.1) Proceeds from note receivable 2
Slide 22: Full Year Spending Increased to $32 Million
NOVAGOLD FULL YEAR SPENDING INCREASED TO $32 MILLION 2023 Forecast Spending Donlin Gold project expenditures $18M Corporate G&A $13M Working capital and other items $1M Total $32M Donlin Gold spending increased $1M for additional mining study work. 22 NOVAGOLD | 2023 Third Quarter Financial Results
Slide 23: Upcoming Catalysts
NOVAGOLD UPCOMING CATALYSTS Taking the Donlin Gold project up the value chain The recently completed comprehensive work provided valuable information for the Donlin Gold LLC board and its Owners – Extensive analysis on project assumptions and inputs – Design components for optimization – mine engi
Slide 24: The History of Gold Cycles
NOVAGOLD “If you take a look at a long-term price chart of gold, you’ll see against the dollar that gold is consolidating and coiling for the next up-leg in the bull market — the one that will take it convincingly past $2,000 and to the higher equilibrium range that I see in dollar terms.” – NOVAGOL
Slide 25: Strong Institutional Shareholder and Management Support
NOVAGOLD STRONG INSTITUTIONAL SHAREHOLDER AND MANAGEMENT SUPPORT The10 largest shareholders represent almost 70% of shares issued and outstanding Named Executive Officers’ ownership has increased to ~2.8 million shares since joining the company 69.5% 30.5% top 10 shareholders 25.4% Electrum Strategi
Slide 26: Appendix
Appendix 26 NOVAGOLD | 2023 Third Quarter Financial Results
Slide 27: 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 28: Mineral Resources
MINERAL RESOURCES Attributable to *Mineral reserves and mineral resources are Donlin Gold Tonnage Grade Metal content 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 29: 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 30: 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 31: Board of Directors
BOARD OF DIRECTORS Dr. Thomas Chairman and CEO of The Electrum Group LLC, a privately President of Azteca Consulting LLC, and director of Glencore plc, Trilogy held natural resources investment management company Kalidas Metals and Dundee Precious Metals Kaplan that controls a diversified portfo
Slide 32: Endnotes
ENDNOTES SLIDE 5 – Donlin Gold: A tier-one asset in a world-leading jurisdiction SLIDE 10 - Double the global average gold grade 1. Represents 100% of measured and indicated resources, inclusive of mineral reserves, of which 50% is 1. 2023 average grade of open pit and underground deposits with gold
Slide 33: Endnotes
ENDNOTES SLIDE 20 – 2023 Third quarter operating performance 2. Except as noted, Mineral Resources are inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred Resources are in addition to Measured 1. Includes interest incom
Slide 34: 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