Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q1 2015 Earnings Presentation
26 slides from Novagold Resources's earnings presentation, Apr 1, 2015
Slide 1: 2015 First Quarter & Project Update
2015 First Quarter & Project Update novagold.com NYSE-MKT, TSX: NG | April 2015
Slide 2: Conference Call Attendees
Conference Call Attendees ▶ Introduction Mélanie Hennessy (Vice President Corporate Communications) ▶ Corporate Update Greg Lang (President & Chief Executive Officer) ▶ First Quarter Financials & 2015 Budget David Ottewell (Vice President & Chief Financial Officer) ▶ Closing Remarks Greg Lang (Presi
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: First Quarter Activities
First Quarter Activities EXCELLENT PROGRESS MADE ON ALL FRONTS WHILE SAFEGUARDING OUR BALANCE SHEET ACHIEVEMENTS ▶ Excellent progress in permitting of Donlin Gold • Submission of comments on initial draft EIS from six cooperating agencies to the Corps, the lead agency • Anticipate publishing the dra
Slide 6: Q1-2015 Project Activity
Q1-2015 Project Activity ▶ Donlin Gold o Activities focused on the draft EIS and other major permit applications with state and federal permitting agencies o Joint optimization studies with Barrick ($1.5 million, NG 50% share) o Continued community engagement and development initiatives o Project fu
Slide 7: Q1-2015 Operating Performance Analysis
Q1-2015 Operating Performance Analysis Q1 Highlights 2015 2014 (US$ millions) General and administrative expenses(1) $8.5 $7.7 Projects: Donlin Gold 2.5 2.9 Galore Creek 0.1 0.7 Donlin Gold studies 0.2 -- Operating loss 11.3 11.3 Other income (expense) 2.0 0.6 Net loss $9.3 $10.7 (1) Includes share-
Slide 8: Q1-2015 Cash Flow Highlights
Q1-2015 Cash Flow Highlights (US$ millions) First Quarter Full Year Budget Cash used in operating activities(1) $ (5.6) $ (14.8) Project funding: Donlin Gold (2.4) (12.6) Galore Creek (0.1) (1.6) Repayment of convertible notes -- (15.8) Foreign exchange effect on cash (0.2) -- Decrease in cash and t
Slide 9: 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 10: 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 11: Among the Highest-Quality Open-Pit Development-Stage Gold Deposit
Donlin Gold: Among the Highest-Quality Open-Pit Development-Stage Gold Deposit DONLIN GOLD’S HIGH GRADE ENDOWMENT PROVIDES RESILIENCE TO GOLD PRICE CYCLES 3.00 ▸ Grade compares well among peer group of emerging open-pit 2.50 gold deposits M&I Gold Grade (g/t) 2.00 2.79 2.31 2.24 1.50 1.77 1.63 1.41
Slide 12: 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 13: 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 14: 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 JURISDICTIONAL APPEAL IS COMPRISED OF FIVE CORNERSTONES: 1) MINERAL POTENTIAL 2) ESTABLISHED MINING PRACTICE 3) POLITICAL AND SOCIAL STABILITY 4) EXCELLENT LOCAL PARTNERSHIPS AND, OF “EXISTENTIAL IMPORTANC
Slide 15: 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 16: Perfect Alignment between Partners
Donlin Gold: Perfect Alignment between Partners Barrick Gold Fourth Quarter 2014 Results – Highlights “The 50% owned Donlin Gold project located in Alaska is one of the largest undeveloped gold deposits in the world. In terms of size, grade, and jurisdictional safety, Donlin Gold is an excellent ass
Slide 17: Partnerships & Activities
Donlin Gold: Partnerships & Activities COLLABORATING WITH OUR PARTNER TO MAXIMIZE PROJECT RETURN 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 ▶ After further de-ri
Slide 18: Permitting Milestones
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 Completed: 08/13 Prepare draft
Slide 19: 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 20: NOVAGOLD Highlights
NOVAGOLD Highlights Safe Geo-Political Environment: Strong Balance Sheet: Alaska and British Columbia, $157m cash + term deposits top-rated mining jurisdictions as of February 28, 2015 NOVAGOLD focused on execution and delivery of our business plan Top Tier Assets: Accomplished Team: Donlin Gold: La
Slide 21: Congratulations to the Yukon-Kuskokwim Mushers
Congratulations to the Yukon-Kuskokwim Mushers 21
Slide 22: Appendix
NOVAGOLD sth me novagold.com
Slide 23: Perfect Alignment between Partners
Donlin Gold: Perfect Alignment between Partners Barrick Gold Fourth Quarter 2014 Results – Full Donlin Gold Disclosure “The 50% owned Donlin Gold project located in Alaska is one of the largest undeveloped gold deposits in the world. In terms of size, grade, and jurisdictional safety, Donlin Gold is
Slide 24: 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 25: 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 26: 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]