Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q2 2015 Earnings Presentation
22 slides from Novagold Resources's earnings presentation, Jul 8, 2015
Slide 1: 2015 Second Quarter & Project Update
2015 Second Quarter & Project Update novagold.com NYSE-MKT, TSX: NG | July 2015
Slide 2: Conference Call Attendees
Conference Call Attendees ▶ Introduction Mélanie Hennessy (Vice President Corporate Communications) ▶ Corporate Update Greg Lang (President & Chief Executive Officer) ▶ Second Quarter Financials & 2015 Budget David Ottewell (Vice President & Chief Financial Officer) ▶ Closing Remarks Greg Lang (Pres
Slide 3: Cautionary 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: 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 GALORE CREEK 50/50 with Teck Expected to be the largest and lowest cost co
Slide 5: Second Quarter Activities - Donlin Gold Permitting Milestones
Second Quarter Activities - Donlin Gold Permitting Milestones PAST THE HALFWAY MARK IN THE EIS PROCESS 2012-2013 2013-2015 2015-2017 Notice of Intent Final EIS to Prepare EIS Draft EIS Record of Decision Initial permit applications Scoping summary document Public comment period Submitted: 08/12 Comp
Slide 6: Second Quarter Activities
Second Quarter Activities ADVANCING OUR PROJECTS WHILE SAFEGUARDING OUR BALANCE SHEET Achievements – Permitting and Technical Studies ▶ Donlin Gold - National Environmental Policy Act (NEPA) Completed major step in EIS permitting process • Corps addressed comments on initial drafts and released prel
Slide 7: Second Quarter Activities
Second Quarter Activities CONTINUED AND EXTENSIVE LOCAL OUTREACH AND ENGAGEMENT Achievements – Community Outreach & Workforce Development ▶ Remained actively engaged in sponsorship activities at the community level in Alaska • Completed 18 out of 31 planned village outreach visits year-to- date • Pa
Slide 8: Q2-2015 Project Activity
Q2-2015 Project Activity ▶ Donlin Gold o Activities remained focused on the draft EIS and other major permit applications with state and federal permitting agencies o Joint optimization studies with Barrick underway ($1.5 million, NG 50% share) o Continued community engagement initiatives o Project
Slide 9: Q2-2015 Operating Performance Analysis
Q2-2015 Operating Performance Analysis Three months Six months Q2 Highlights ended ended (US$ millions) May 31, 2015 May 31, 2015 General and administrative expenses(1) $3.2 $11.6 Projects: Donlin Gold 3.6 6.2 Galore Creek 0.3 0.4 Donlin Gold studies 0.2 0.3 Operating loss 7.3 18.5 Other (income) ex
Slide 10: Q2-2015 Cash Flow Highlights
Q2-2015 Cash Flow Highlights Three months Six months Q2 Highlights ended ended (US$ millions) May 31, 2015 May 31, 2015 Cash used in operating activities(1) $ (2.6) $ (8.2) Project funding: Donlin Gold (3.6) (6.0) Galore Creek (0.3) (0.4) Repayment of convertible notes (15.8) (15.8) Foreign exchange
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 RESERVES1 34 Moz Proven & Probable Grade: 2.09 g/t RESOURCES1,2 39 Moz Measured & Indicated (inclusive of P&P reserves) Grade: 2.24 g/t 6 Moz Inferred Grade: 2.02 g/t Notes: 1) Shown on 10
Slide 12: Donlin Gold: The Emerging Top-Tier Producer in the Safest Jurisdiction
Donlin Gold: The Emerging Top-Tier Producer in the Safest Jurisdiction A REMARKABLE RESOURCE AMONG EMERGING OPEN-PIT GOLD DEPOSITS 40.0 ▶ Donlin Gold’s size and production profile clearly 35.0 distinguish it from its peers (millions of ounces) M&I Gold Resource 30.0 39.0 25.0 20.0 21.8 15.0 19.0 15.
Slide 13: Donlin Gold: More than Double the Grade of the Average Gold Deposit
Donlin Gold: Is More than 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 World Avg. Grade2: Avg. Grade1: 2.24 g/t 1.01 g/t Reserve grades continue to decline while sources for emerging production to re
Slide 14: 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 15: Donlin Gold: 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 ▶ Project has a positive 30,000 27.0B return that increases substantially with higher 25,000 27year gold prices mine life NPV (US$ in millions) 19.2B ▶ Good payback at a 20,000 broad rang
Slide 16: 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 Alaska’s jurisdictional appeal is comprised of five cornerstones: ▶ Mineral potential ▶ Established mining industry ▶ Political and social stability ▶ Excellent local partnerships and, of “existential import
Slide 17: Donlin Gold: Consistently Advancing the Project
Donlin Gold: Consistently Advancing the Project CO-OWNERS COMMITTED TO MOVING DONLIN GOLD THROUGH PERMITTING TO A CONSTRUCTION DECISION AT A MEASURED PACE Donlin Gold Updated FS, FS completed resources Optimization studies increased 60 completed, 135% from reserves up 2006 Project Funding on 100% ba
Slide 18: 2015 Outlook
2015 Outlook CONTINUE TO EXECUTE AND DELIVER ON OUR BUSINESS PLAN PRIORITY PRIORITY PRIORITY PRIORITY PRIORITY 1 2 3 4 5 Advance Maintain Advance Evaluate Safeguard Donlin Gold strong Galore Creek opportunities our cash permitting relationships mine to monetize position to a with all planning the va
Slide 19: Appendix
NOVAGOLD sth me novagold.com
Slide 20: NOVAGOLD: Reserve/Resource Table
NOVAGOLD: Reserve/Resource Table Donlin Gold (100% basis)* Tonnage Grade Metal content GOLD Kt g/t Au Koz Au Reserves1 Proven 7,683 2.32 573 Probable 497,128 2.08 33,276 P&P 504,811 2.09 33,849 Resources3, inclusive of Reserves Measured 7,731 2.52 626 Indicated 533,607 2.24 38,380 M&I 541,337 2.24 3
Slide 21: NOVAGOLD: Reserve/Resource Table (con't)
NOVAGOLD: Reserve/Resource Table (con’t) Notes: a. These resource estimates have been prepared in accordance with NI43-101 and the CIM Definition Standard, unless otherwise noted. b. See numbered footnotes below on resource information. c. Rounding as required by reporting guidelines may result in a
Slide 22: 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 [email protected] Mélanie Hennessey Erin O’Toole VP, Corporate Communications Analyst, Investor Relations [email protected]