Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q2 2021 Earnings Presentation
30 slides from Novagold Resources's earnings presentation, Jun 30, 2021
Slide 1: 2021 Second Quarter Financial Results & Project Update
2021 Second Quarter Financial Results & Project Update TSX, NYSE American: NG | novagold.com | June 30, 2021
Slide 2: Second Quarter 2021 Webcast and Conference Call Agenda
Second Quarter 2021 Webcast and Conference Call Agenda Introduction Mélanie Hennessey (Vice President, Corporate Communications) Second Quarter Update Dr. Thomas Kaplan (Chairman) Second Quarter Financials David Ottewell (Vice President & Chief Financial Officer) Closing Remarks Dr. Thomas Kaplan (C
Slide 3: Cautionary Statements
Cautionary Statements REGARDING FORWARD-LOOKING STATEMENTS This presentation includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable securities legislation, including the United States Private Securi
Slide 4: NOVAGOLD: Donlin Gold is a Tier-One Asset in a Tier-One Jurisdiction
NOVAGOLD: Donlin Gold is a Tier-One Asset1 in a Tier-One Jurisdiction2 Unique asset with strong, investor-friendly attributes SIZE: 39,000,000 gold ounces contained in measured and indicated mineral resources3 GRADE: 2.24 g/t4, more than double the world average grade5 EXPLORATION POTENTIAL: Endowme
Slide 5: NOVAGOLD: Sustainability
NOVAGOLD: Sustainability Through collaborative ESG efforts, NOVAGOLD and the Donlin Gold project are committed to responsible mining — positively impacting people and the planet. 5
Slide 6: Our Employees
DONLIN GOLD: Our Employees 70% of Donlin Gold direct hires for the 2021 drill program are Alaska Natives 1) Footnote 6
Slide 7: Our Employees
DONLIN GOLD: Our Employees Left: Delivering buckets to rural communities to enhance hygiene practices Left: Donlin Gold employee at 2021 program camp Left: Gathering materials for Top and Left: Conducting a rainbow smelt face mask larva study making kits 7
Slide 8: COVID-19
DONLIN GOLD: COVID-19 Continuing to keep our workforce healthy and safe NOVAGOLD and Donlin Gold continue to follow strict health protocols to ensure the safety and well-being of its workforce, their families, and local communities for the 2021 field season. This effort is part of a Community and Wo
Slide 9: Camp Improvements
DONLIN GOLD: Camp Improvements Upgraded facilities and equipment at site Donlin Gold has made significant improvements at camp • Mobile equipment purchases: Telehandler, water truck, 5yd. Dump truck, F150 pickup, and 2 Polaris side-by-sides • Larger kitchen facility • New recreation area furnished •
Slide 10: 2021 Drill Program
DONLIN GOLD: 2021 Drill Program 10
Slide 11: 2021 Drill Program Update
DONLIN GOLD: 2021 Drill Program Update The Donlin Gold 2021 drill program is progressing as planned • The Donlin Gold project camp was safely re-opened in March 2021 with four drills operating • A total of 28 holes have been drilled to date (approx. 8,650 meters of length drilled) out of 64 planned
Slide 12: Permitting Update
DONLIN GOLD: Permitting Update Key federal permits for the project received and state permitting is well advanced FEDERAL PERMITTING ✓ Final Environmental Impact Statement (EIS) ✓ Joint Record of Decision (ROD) by the Corps and Bureau of Land Management ✓ Section 10/404 (wetlands) permit and BLM Off
Slide 13: NI 43-101 Technical Report
DONLIN GOLD: NI 43-101 Technical Report An update to the content in the 2011 Technical Report1 In 2020, the Company retained Wood Canada Limited (“Wood”) to perform a detailed review of the costs and other assumptions used in the previously filed 2011 Technical Report to meet reporting requirements.
Slide 14: 2021 Second Quarter Community Engagement
2021 Second Quarter Community Engagement Building upon long-term relationships throughout the Y-K region Donlin Gold Shared Values Statements • Finalized Shared Value Statements with two additional villages from the Y-K region for a total of seven (Akiak, Sleetmute, Napaimute, Crooked Creek, Napaski
Slide 15: Long-Term Native Corporation Partners
DONLIN GOLD: Long-Term Native Corporation Partners Donlin Gold is being developed on private land that was selected by Calista and TKC at the direction of Y-K Elders in the 1970s • The Alaska Native Claims Settlement Act1 (ANSCA) of 1971 resolved Alaska Native land claims, allotting 44 million acres
Slide 16: Long-Term Native Corporation Partners
DONLIN GOLD: Long-Term Native Corporation Partners Donlin Gold, Calista and TKC launched a Subsistence Community Advisory Committee (SCAC), which will provide input on the relationship between the Donlin Gold project and subsistence activities within the Kuskokwim River drainage. This Advisory Commi
Slide 17: NOVAGOLD: 2021 Operating Performance
NOVAGOLD: 2021 Operating Performance Three months ended Six months ended May 31, May 31, (US$ millions) 2021 2020 2021 2020 General and administrative(1) $5.0 $4.4 $10.3 $9.1 Donlin Gold 4.2 3.7 6.2 5.3 Operating loss 9.2 8.1 16.5 14.4 Other (income) expense(2) 1.3 (1.2) 2.0 (1.1) Income tax expense
Slide 18: NOVAGOLD: 2021 Cash Flow
NOVAGOLD: 2021 Cash Flow Three months ended Six months ended May 31, May 31, (US$ millions) 2021 2020 2021 2020 General and administrative(1) $(2.9) $(2.7) $(6.2) $(5.6) Donlin Gold (5.2) (4.3) (8.1) (6.9) Working capital, interest and other 1.5 0.6 0.7 — Withholding tax on share-based compensation
Slide 19: NOVAGOLD: Maintaining a Strong Treasury
NOVAGOLD: Maintaining a Strong Treasury A healthy treasury to advance Donlin Gold to the next stage of development $ 31-35M BUDGET BUDGET anticipated 2021 expenditures 108M 75M disclosed on January 27, 20211 $ $ TREASURY cash and term deposit balance receivable from on May 31, 2021 Newmont in July 2
Slide 20: Largest Gold Development Project in its Category
DONLIN GOLD: Largest Gold Development Project in its Category1 A resource more than four times the size of the peer group average 50.0 40.0 39.0 2 Donlin Gold2 8.4 Moz 39.0 Moz M&I Gold Resource (millions of ounces) 30.0 peer group average1 20.0 18.8 11.7 11.5 11.3 10.9 10.0 10.0 8.2 8.1 8.0 6.3 5.0
Slide 21: 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 1.12 g/t Donlin Gold average grade2 Global average grade1 While global average gold grades are declining, Donlin Gold’s grade provides resilience through commodity price cycles 1)
Slide 22: 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 1.80 1.60 1.1 Moz/yr1 1.40 0.3 Projected Annual Gold Production (millions of ounces) 1.502 1.20 Moz/yr3 1.00 0.80 Donlin Gold’s 27-year mine life North and South American gold- foc
Slide 23: One of the Largest Gold Projects in a Safe Jurisdiction
DONLIN GOLD: One of the Largest Gold Projects in a Safe Jurisdiction1 A comparison of the top three gold producing operations2 and the five largest development-stage gold projects3 ALASKA’S JURISDICTIONAL APPEAL 11.5Moz • Mineral potential Livengood 46.0Moz 1.2Moz Sukhoi Log • Established mining ind
Slide 24: The Next Big Gold Discovery Could be at Donlin Gold
DONLIN GOLD: The Next Big Gold Discovery Could be at Donlin Gold Substantial exploration potential along the 8 km-long mineralized trend, located on less than 5% of Donlin Gold’s land position • From 2006 to 2011, M&I resources increased 135% (16.6Moz1 to 39.0Moz2) through a well-executed exploratio
Slide 25: Project Catalysts
DONLIN GOLD: Project Catalysts Multi-generational sustainable economic opportunity • Integrate the 2021 drill program results into the geologic model • Complete the model update with additional 2021 confirmation and extension drilling, focusing on the continuity and structural controls of the higher
Slide 26: 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 Named Executive Officers’ ownership has increased to 2,694,455 shares2 since joining the company 35.3% all other shareholders 64.7% top 10 shareholders 25.7
Slide 27: NOVAGOLD: Donlin Gold is a Tier-One Asset in a Tier-One Jurisdiction
NOVAGOLD: Donlin Gold is a Tier-One Asset1 in a Tier-One Jurisdiction2 Unique asset with strong, investor-friendly attributes SIZE: 39,000,000 gold ounces contained in measured and indicated mineral resources3 GRADE: 2.24 g/t4, more than double the world average grade5 EXPLORATION POTENTIAL: Endowme
Slide 28: Appendix
APPENDIX NOVAGOLD
Slide 29: NOVAGOLD: Mineral Reserves & Mineral Resources
NOVAGOLD: Mineral Reserves & Mineral Resources Donlin Gold (100% basis)* Tonnage Grade Metal content GOLD kt g/t Au koz Au * Mineral reserves and resources are reported on a Reserves1 100% basis. NOVAGOLD and Barrick each own 50% of the Proven 7,683 2.32 573 Donlin Gold project. Probable 497,128 2.0
Slide 30: NOVAGOLD Resources Inc. Contact
NOVAGOLD RESOURCES INC. Suite 1860 – 400 Burrard Street Mélanie Hennessey Vancouver, BC, Canada V6C 3A6 VP, Corporate Communications T: 604 669 6227 [email protected] TF: 1 866 669 6227 F: 604 669 6272 Jason Mercier www.novagold.com Manager, Investor Relations [email protected] jason.me