Novagold Resources Inc. · AMEX:NG
Novagold Resources — FY2015 Earnings Presentation
27 slides from Novagold Resources's earnings presentation, Jan 28, 2016
Slide 1: 2015 Year-End Financials & Project Update
2015 Year-End Financials & Project Update NYSE-MKT, TSX: NG | January 28, 2016 novagold.com
Slide 2: Conference Call Attendees
CONFERENCE CALL ATTENDEES > Introduction Mélanie Hennessy (Vice President Corporate Communications) > Corporate Update Greg Lang (President & Chief Executive Officer) > Fourth Quarter Financials & 2016 Budget David Ottewell (Vice President & Chief Financial Officer) > Closing Remarks Greg Lang (Pres
Slide 3: Cautionary Statements Regarding Forward-Looking 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: 2015 Achievements: Permitting & Technical Studies
2015 ACHIEVEMENTS: PERMITTING & TECHNICAL STUDIES SUCCESSFULLY DELIVERED ON ALL KEY GOALS DONLIN GOLD – NATIONAL ENVIRONMENTAL POLICY ACT (NEPA) > Excellent progress in Donlin Gold permitting: • The Corps published the Donlin Gold Draft EIS • Advanced other major permits – Section 404, integrated wa
Slide 6: 2015 Achievements: Community Outreach & Workforce Development
2015 ACHIEVEMENTS: COMMUNITY OUTREACH & WORKFORCE DEVELOPMENT SUCCESSFULLY DELIVERED ON ALL KEY GOALS DONLIN GOLD – EXTENSIVE OUTREACH IN THE YUKON-KUSKOKWIM (Y-K) REGION Workforce development is a key element of Donlin Gold’s outreach initiative > Completed approximately 60 project updates to villa
Slide 7: 2015 Project Activity
2015 PROJECT ACTIVITY > Donlin Gold o Activities focused on providing the Corps with requested input and information for the preparation and completion of the Draft EIS o Continued to work with state and federal permitting agencies to advance other major permit applications o Remained actively engag
Slide 8: 2015 Operating Performance Analysis
2015 OPERATING PERFORMANCE ANALYSIS Highlights Year ended Year ended (US$ millions) November 30, 2015 November 30, 2014 General and administrative expenses(1) $19.9 $22.0 Projects: Donlin Gold 11.0 14.0 Galore Creek 0.4 1.9 Donlin Gold studies 0.4 -- Operating loss 31.7 38.0 Other (income) expense 0
Slide 9: 2015 Cash Flow Highlights
2015 CASH FLOW HIGHLIGHTS Highlights Year ended Year ended (US$ millions) November 30, 2015 November 30, 2014 Cash used in operating activities $ (11.4) $ (9.8) Project funding: Donlin Gold (10.5) (13.9) Galore Creek (0.5) (2.1) Repayment of convertible notes (15.8) -- Foreign exchange effect on cas
Slide 10: Clear Focus and Strong Funding to Execute on All Fronts
CLEAR FOCUS AND STRONG FUNDING TO EXECUTE ON ALL FRONTS SUFFICIENT CASH ON HAND TO PROGRESS DONLIN GOLD THROUGH PERMITTING $127M in cash and term deposits1 2016 Budget Donlin Gold $9M Galore Creek $1M G&A, interest & Donlin Gold joint studies $15M TOTAL $25M 1) Includes $85 million in term deposits
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
DONLIN GOLD: THE EMERGING TOP-TIER PRODUCER IN THE SAFEST JURISDICTION A REMARKABLE RESOURCE AMONG EMERGING OPEN-PIT GOLD DEPOSITS 45.0 40.0 35.0 > Donlin Gold’s size and production profile clearly distinguish it from 30.0 its peers (millions of ounces) M&I Gold Resource 25.0 20.0 39.0 15.0 10.0 21.
Slide 13: Donlin Gold: Double the Grade of the Average Gold Deposit
DONLIN GOLD: IS 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 Average Grade2: World Average Grade1: 2.24 g/t 1.12 g/t Industry average grades are declining and sources for emerging production are incr
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: Strong Gold Fundamentals
DONLIN GOLD: STRONG GOLD FUNDAMENTALS SUPPLY AND DEMAND PRESSURES SUPPORT GOLD’S UPWARD TRAJECTORY New Discoveries Rare Gold Production Cliff Central Bank Buying Gold Exploration Spending vs. New Discoveries World Gold Production Central Bank Holdings Data through December 2014 Annual Data through 2
Slide 16: 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 NPV after-tax (US$ in millions) 30,000 > Project has a positive return 27year 27.0B that increases substantially with higher gold prices 25,000 > Good payback at a mine life 20,000 19.2B
Slide 17: Donlin Gold: Committed Partners Advancing the Project
DONLIN GOLD: COMMITTED PARTNERS ADVANCING THE PROJECT COLLABORATING WITH OUR PARTNER TO COMPLETE THE EIS PROCESS Barrick and NOVAGOLD are jointly committed to working together to create shareholder value from Donlin Gold’s unique optionality > Project activities continue to progress as planned > Foc
Slide 18: Donlin Gold: Life of Mine Agreements with Alaska Native Corporations
DONLIN GOLD: LIFE OF MINE AGREEMENTS WITH ALASKA NATIVE CORPORATIONS STRONG AND TIME-HONORED RELATIONSHIPS WITH STAKEHOLDERS Donlin Gold has the support of the land owners through a 20+ year relationship “The release of the DEIS marks another positive “We are pleased that the Donlin Gold EIS is movi
Slide 19: Donlin Gold: Project Permitting Is On Track
DONLIN GOLD: PROJECT PERMITTING IS ON TRACK DRAFT ENVIRONMENTAL IMPACT STATEMENT RECENTLY PUBLISHED DEVELOPMENT TIMELINE: 16 years ̴5 ̴4 27+ years ENVIRONMENTAL STUDIES 1.5 Moz/year first five full years1 EXPLORATION & ENGINEERING & CONSTRUCTION PERMITTING OPERATION 1.1 Moz/year life of mine1 PERMIT
Slide 20: Galore Creek: A Significant Copper-Gold-Silver Asset in Canada
GALORE CREEK: A SIGNIFICANT COPPER-GOLD-SILVER ASSET IN CANADA THE KIND OF ASSET YOU CAN BUILD A COMPANY AROUND M&I RESOURCES1 copper 9 Blbs Grade: 0.50% gold 8 Moz Grade: 0.31 g/t silver 136 Moz Grade: 5.21 g/t Notes: 1) Represents 100% of measured and indicated resources of which NOVAGOLD’s share
Slide 21: Why Invest in NovaGold?
WHY INVEST IN NOVAGOLD? IT IS A BLUE CHIP INSTITUTIONAL QUALITY INVESTMENT “...a perpetual call on the gold price 26.6% with what could be a world-class Electrum Strategic Resources LP gold mining asset, but it won't get built until the gold price is right.” John Hathaway, 44% Tocqueville Asset Mana
Slide 22: 2016 Focus & Key Objectives
2016 FOCUS & KEY OBJECTIVES CONTINUE TO EXECUTE AND DELIVER ON OUR BUSINESS PLAN > Advance Donlin Gold permitting to a construction/production decision > Maintain strong relationships with all stakeholders > Advance Galore Creek mine planning and project design > Safeguard our cash position > Moneti
Slide 23: Why NovaGold Why Now
WHY NOVAGOLD WHY NOW Safe Geo-Political Environment: Strong Balance Sheet: Alaska and British Columbia, $127m cash + term deposits top-rated mining jurisdictions as of November 30, 2015 NOVAGOLD focused on execution and delivery of our business plan Top Tier Assets: Accomplished Team: Donlin Gold: L
Slide 24: Appendix
APPENDIX novagold.com
Slide 25: NovaGold: Reserve/Resource Table
NOVAGOLD: RESERVE/RESOURCE TABLE Donlin Gold* Tonnage (100%) Grade (100%) Metal (100%) NOVAGOLD Share (50% ) GOLD Mt g/t Au koz Au koz Au Reserves1 Proven 7.7 2.32 573 286 Probable 497.1 2.08 33,276 16,638 P&P 504.8 2.09 33,849 16,924 Resources3, inclusive of Reserves Measured 7.7 2.52 626 313 Indic
Slide 26: NovaGold: Reserve/Resource Table (Con't)
NOVAGOLD: RESERVE/RESOURCE TABLE (CON’T) Notes: a. These reserve and 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 and significant figures may result in a
Slide 27: 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]