Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q1 2022 Earnings Presentation
34 slides from Novagold Resources's earnings presentation, Apr 6, 2022
Slide 1: 2022 First Quarter Financial Results & Project Update
2022 First Quarter Financial Results & Project Update April 6, 2022 TSX, NYSE American: NG | novagold.com
Slide 2: First Quarter 2022 webcast & conference call agenda
First Quarter Introduction Mélanie Hennessey 2022 webcast & Vice President, Corporate Communications conference call agenda First Quarter update Greg Lang President & Chief Executive Officer First Quarter financials David Ottewell Vice President & Chief Financial Officer Gold commentary & closing re
Slide 3: Cautionary 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 This presentation includes certain “forward-looking information” and “forward-looking statements” (collectively “forw
Slide 4: 2022 First quarter financial results & Donlin Gold project update
2022 First quarter financial results & Donlin Gold project update (50 percent owned by NOVAGOLD) Greg Lang President & Chief Executive Officer 4 NOVAGOLD | 2022 First Quarter Financial Results & Project Update
Slide 5: 2021 drill program delivers outstanding gold intercepts
DONLIN GOLD 2021 drill program delivers outstanding gold intercepts Bringing Donlin Gold up the value chain Top ten intervals based on drilled grade-thickness1 Drilled Grade- Date Grade Hole Id From To Thickness Thickness Reported (g/t Au) (m) (m x g/t Au) 1. DC21-1970 9/2/2021 69.7 161.7 92.0 7.8 7
Slide 6: Strong partnership alignment
DONLIN GOLD Strong partnership alignment 50:50 joint venture partnership “Our orebody knowledge of Donlin in Alaska continues to grow. The 2021 drill campaign finished strongly with high-grade intercepts and some of the best drill results for an open pit gold project industry wide. We began 2022 und
Slide 7: 2022 drill program
DONLIN GOLD 2022 drill program ACMA and Lewis deposits open at depth Longitudinal section view of the ACMA and Lewis deposits • High-grade intercepts point to potential feeder zones of this system • Significant exploration potential remains near the ACMA and Lewis deposits and the balance of the Don
Slide 8: 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 along strike ▪ From 2006 to 2011, M&I Far Side resources increased 135% (16.6Moz1 to 39.0Moz2) Queen ▪ Gold resource defined with Ophir Snow Quartz approximately 1,400 drillholes ACMA Pit
Slide 9: 2022 drill program: largest budget in more than a decade
DONLIN GOLD 2022 drill program: largest budget in more than a decade 2022 drill program $34M (approx. 34,000 meters of core drilling) • Grid drilling (mineralization continuity and geologic structural controls in three areas of the deposit) • In-pit and below pit exploration • Waste Rock Facility co
Slide 10: Sustainability performance
NOVAGOLD Sustainability performance NOVAGOLD and Donlin Gold are committed to responsible mining — positively impacting people and the planet through collaborative ESG efforts in three major areas: 1 2 3 ENVIRONMENT SOCIAL GOVERNANCE Partnered with the Association of Village Council Donlin Gold has
Slide 11: First quarter community engagement
DONLIN GOLD First quarter community engagement Continued support in the areas in which we operate ▪ Worked with six school districts in the region as part of the national Dictionary Project – supplying a personal dictionary to all 3rd graders ▪ New partnership developed with Alaska Safe Riders – spo
Slide 12: Decades of government engagement
DONLIN GOLD Decades of government engagement Working together since 2001 to take the Donlin Gold project up the value chain ▪ The Donlin Gold project land and mineral rights are under private ownership of our Alaska Native Corporation partners, Calista Corporation and The Kuskokwim Corporation (TKC)
Slide 13: Donlin Gold: a tier-one asset in a tier-one jurisdiction
DONLIN GOLD Donlin Gold: a tier-one asset1 in a tier-one jurisdiction2 Generational asset with strong, investor-friendly attributes SIZE GRADE EXPLORATION POTENTIAL 39 million gold ounces 2.24 g/t4 Au more than double contained in measured and the world average grade5 Only 5% of 489 sq km land indic
Slide 14: Largest gold development project in its category
DONLIN GOLD Largest gold development project in its category1 A resource more than five times the size of the peer group average 50.0 40.0 39.0Moz Donlin Gold2 M&I gold resource (millions of ounces) 30.0 20.0 10.9 11.3 11.5 11.7 10.0 8.0 8.1 8.2 10.0 6.3 7.7Moz Peer group average1 3.9 4.2 4.6 5.0 3.
Slide 15: Positioned to be one of the world's largest gold mines
DONLIN GOLD Positioned to be one of the world’s largest gold mines Positioned to become a million-ounce gold producer1 Donlin Gold’s 1.20 27-year mine life 1.101 Projected annual gold production (millions of ounces) 1.00 1.1 Moz/yr1 0.80 0.60 0.50 0.39 0.40 0.36 0.37 0.30 0.32 0.28 0.29 0.29 0.29 0.
Slide 16: Double the global average gold grade
DONLIN GOLD Double the global average gold grade1 Among the world’s highest-grade known open-pit gold deposits 2.24 g/t While global average gold grades are declining, Donlin 1.12 Gold’s grade g/t provides resilience through commodity price cycles Global average grade1 Donlin Gold average grade2 See
Slide 17: One of the largest gold projects in a safe jurisdiction
DONLIN GOLD One of the largest gold projects in a safe jurisdiction1 Comparing the top three gold producing operations2 and the five largest development-stage gold projects3 50.0 46.0 Donlin Gold Muruntau Livengood Olimpiada 40.0 39.04 Sukhoi Log M&I gold resource (millions of ounces) 30.0 20.0 11.3
Slide 18: Alaska Native Corporation partnerships elevate the project
DONLIN GOLD Alaska Native Corporation partnerships elevate the project Donlin Gold has life-of-mine agreements with Alaska Native Corporations Calista and TKC Land valuable for resource potential was selected by regional Alaska Native Corporations, and resource development companies were invited by
Slide 19: 2022 first quarter financial results
2022 first quarter financial results David Ottewell Vice President & Chief Financial Officer 19 NOVAGOLD | 2022 First Quarter Financial Results & Project Update
Slide 20: 2022 first quarter operating performance
NOVAGOLD 2022 first quarter operating performance Three months ended February (US$ millions) 2022 2021 General and administrative $5.2 $5.3 Donlin Gold 4.0 2.0 Operating loss 9.2 7.3 Other (income) expense, net1 0.8 0.7 Net loss $10.0 $8.0 See endnotes for this slide in Appendix 20 NOVAGOLD | 2022 F
Slide 21: 2022 first quarter cash flow
NOVAGOLD 2022 first quarter cash flow Three months ended February 28 (US$ millions) 2022 2021 General and administrative1 $(3.1) $(3.3) Donlin Gold (5.9) (2.9) Working capital, interest and other (2.9) (0.8) Withholding tax on share-based compensation (2.1) (0.7) Decrease in cash and term deposits (
Slide 22: Maintaining a strong treasury
NOVAGOLD Maintaining a strong treasury Largest planned spending for Donlin Gold in over a decade $30M Donlin Gold project expenditures $46M $13M Corporate G&A Forecast 2022 spending $3M Withholding taxes on PSUs and other working capital Due from Newmont $155M cash and term deposit balance on Februa
Slide 23: Gold commentary & closing remarks
Gold commentary & closing remarks Dr. Thomas Kaplan Chairman 23 NOVAGOLD | 2022 First Quarter Financial Results & Project Update
Slide 24: Donlin Gold: a tier-one asset in a tier-one jurisdiction
DONLIN GOLD Donlin Gold: a tier-one asset1 in a tier-one jurisdiction2 Generational asset with strong, investor-friendly attributes SIZE GRADE EXPLORATION POTENTIAL 39 million gold ounces 2.24 g/t4 Au more than double contained in measured and the world average grade5 Only 5% of 489 sq km land indic
Slide 25: Promises kept, excellent partnerships
NOVAGOLD Promises kept, excellent partnerships Track record of converting company goals into shareholder value Successful strategic repositioning as a Aligned on project strategy and timeline with Steady advancement of Donlin Gold up the value chain pure gold play Barrick Gold ▪ 2012: Spin-out of 10
Slide 26: Significant value upside with higher gold prices
DONLIN GOLD Significant value upside with higher gold prices $35.0 31.6B $30.0 Net Present Value (NPV) (US$ in Billions) ▪ Project return increases substantially with higher $25.0 gold prices1 22.5B ▪ Good payback at a $20.0 broad range of gold 17.5B prices ▪ Long mine life offers high $15.0 13.1B l
Slide 27: Strong institutional shareholder and management support
NOVAGOLD Strong institutional shareholder and management support The 10 largest shareholders represent 64.7% of shares issued and outstanding1 Executive Officers’ ownership has increased to ~2.8 million shares2 since joining the company 35.3% 64.7% all other top 10 shareholders shareholders 2.7 25.4
Slide 28: TSX, NYSE American: NG | novagold.com
TSX, NYSE American: NG | novagold.com NOVAGOLD RESOURCES INC. Mélanie Hennessey Suite 1860 – 400 Burrard Street VP, Corporate Communications Vancouver BC Canada V6C 3A6 [email protected] T: 604 669 6227 TF: 1 866 669 6227 F: 604 669 6272 E: [email protected] 28 NOVAGOLD | 2022 First Qua
Slide 29: Appendix
Appendix 29 NOVAGOLD | 2022 First Quarter Financial Results & Project Update
Slide 30: Mineral reserves
Mineral reserves Attributable to Donlin Gold Tonnage Grade Metal Content NOVGAOLD *Mineral reserves and GOLD kt g/t Au koz Au koz Au mineral resources are reported on a 100% basis Reserves1 and on a 50% basis. Proven 7,683 2.32 573 287 NOVAGOLD and Barrick each own 50% of the Probable 497,128 2.08 3
Slide 31: Mineral resources
Mineral resources Attributable to Donlin Gold Tonnage Grade Metal content NOVGAOLD *Mineral reserves and GOLD kt g/t Au koz Au koz Au mineral resources are reported on a 100% basis Resources2, exclusive of Reserves and on a 50% basis. NOVAGOLD and Barrick Measured 869 2.23 62 31 each own 50% of the
Slide 32: Endnotes
Endnotes SLIDE 5 - 2021 drill program delivers outstanding gold intercepts 3. Represents 100% of M&I resources, inclusive of mineral reserves, of which 50% is NOVAGOLD’s share. Donlin Gold is not in production and a construction decision has not been made. For more 1. Significant intervals represent
Slide 33: Endnotes
Endnotes SLIDE 17 - One of the largest gold projects in a safe jurisdiction NOVAGOLD's control. Consequently, all of the FOFI or financial outlook are qualified by these cautionary statements. 1. The jurisdictional risk map is derived from the top 10 (lower risk) and bottom 10 (extreme risk) of 77 j
Slide 34: Endnotes
Endnotes SLIDES 30 & 31 - Mineral reserves and Mineral resources Reserve and Mineral Resource estimates shown above remain unchanged from the 2011 estimates contained in the prior technical report. See “Cautionary Note Concerning Reserve & Resource 1. Mineral Reserves are reported within the pre-fea