Novagold Resources Inc. · AMEX:NG
Novagold Resources — Shareholder Meeting (May 2015)
33 slides from Novagold Resources's shareholder meeting presentation, May 14, 2015
Slide 1: 2015 Annual General Meeting of Shareholders
2015 Annual General Meeting of Shareholders novagold.com NYSE-MKT, TSX: NG | May 14, 2015
Slide 2: Speakers
Speakers David Deisley, Executive Vice President & General Counsel Official Business of the Meeting Gregory Lang, President & Chief Executive Officer Company Overview Thomas Kaplan, Chairman Closing Remarks 2
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: 2014 Achievements
2014 Achievements TAKING MEANINGFUL STEPS TOWARD OUR GOAL, ONE MILESTONE AT A TIME Significantly advanced Donlin Gold permitting Strengthened and extended partnerships Built upon extensive local outreach efforts in Alaska Initiated Galore Creek technical studies Maintained strong financials; positio
Slide 6: 2015 Activities & Milestones
2015 Activities & Milestones CONSISTENT GOAL IN MIND WITH A CLEAR STRATEGY TO DELIVER Advance Donlin Gold toward a construction/production decision Progress Galore Creek mine planning and project design Evaluate opportunities to monetize the value of Galore Creek Safeguard our healthy balance sheet
Slide 7: 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 8: 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 9: 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 VERY FEW LARGE HIGH-GRADE OPEN-PIT GOLD PROJECTS ON THE HORIZON 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 replace mined-
Slide 10: 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 11: 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 12: Keeping to our Timetable: Project Progressing as Forecasted
Keeping to our Timetable: Project Progressing as Forecasted DEVELOPMENT TIMELINE OF NEW GOLD PROJECTS HAS MORE THAN DOUBLED 35 ▸ Donlin Gold is more than halfway through permitting & will be ready for a construction decision when sentiment returns 30 ~18 years Average Number of Years from Discovery
Slide 13: Why Donlin Gold? No New Substantial Discoveries
Why Donlin Gold? No New Substantial Discoveries DESPITE RECORD HIGH EXPLORATION SPENDING LEVELS THE GOLD INDUSTRY HAS EXPERIENCED A RECENT DROP IN DISCOVERIES 16 Gold Discovered 10,000 Exploration Budget (US$M) 9,000 14 8,000 12 Number of Gold Discoveries 7,000 2012 10 6,000 highest year on record f
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: 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 16: 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 ▶ Focused on advancing Donlin Gold through permitting to a record of decis
Slide 17: Durable, Long-Term Agreements with the Native Corporations
Donlin Gold: Durable, Long-Term Agreements with the Native Corporations STRONG AND TIME-HONORED RELATIONSHIPS WITH STAKEHOLDERS "Since 1995, Donlin Gold has worked constructively in “Calista and TKC are not only stakeholders, but are our region and I know our partnership will benefit our the legisla
Slide 18: The Project Permitting is On Track
Donlin Gold: The Project Permitting is On Track DEVELOPMENT TIMELINE - ADVANCING TOWARD A CONSTRUCTION DECISION 16 years ̴5 ̴4 27+ years 1.5 Moz/year ENVIRONMENTAL EXPLORATION & first five full years1 CONSTRUCTION ENGINEERING & PERMITTING OPERATION 1.1 Moz/year STUDIES life of mine1 WE ARE HERE HALF
Slide 19: Permitting Milestones
Donlin Gold: Permitting Milestones PAST THE HALFWAY MARK IN THE EIS PROCESS 2012-2013 2013-2016 2016-2017 Notice of Intent Draft EIS Final EIS to Prepare EIS Record of Decision Initial permit applications Scoping summary document Completed: 08/13 Prepare draft final EIS Submitted: 08/12 Development
Slide 20: Optimization Studies
Donlin Gold: Optimization Studies COLLABORATING WITH OUR PARTNER TO MAXIMIZE PROJECT RETURN ▶ Optimization studies underway to evaluate opportunities to reduce initial owner capital • Third-party financing or owner/operator prospects (≈$1.0B potential reductions i.e. gas pipeline, port facilities, o
Slide 21: 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 Expansion-drilling campaign identified Updated FS, additional resource Optimization resources potential studies increased 60 completed, 135% from
Slide 22: 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 23: 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 AND MEET FINANCIAL OBLIGATIONS May 1, 2015 millions Cash and term deposits1 $136 2015 Budget2 Donlin Gold $13 Galore Creek $2 G&A, interest & Donlin Gold joint studies $14 Repay
Slide 24: 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 25: Why Invest in NOVAGOLD?
Why Invest in NOVAGOLD? A BLUE CHIP INSTITUTIONAL QUALITY INVESTMENT 26.7% Cash and Term Electrum Strategic Resources LP Deposits2 $136M 47% Other 11.3% Market Cap3 Paulson & Co. Inc $1.2B 53% 1) 2) 3) Shareholder positions are based on the latest 13-F filings Includes $85 million in term deposits a
Slide 26: NOVAGOLD Highlights
NOVAGOLD Highlights Safe Geo-Political Environment: Strong Balance Sheet: Alaska and British Columbia, $136m cash + term deposits top-rated mining jurisdictions as of May 1, 2015 NOVAGOLD focused on execution and delivery of our business plan Top Tier Assets: Accomplished Team: Donlin Gold: Large, h
Slide 27: Chairman's Closing Remarks
Dr. Thomas S. Kaplan Chairman’s Closing Remarks 27
Slide 28: Appendix
Appendix novagold.com
Slide 29: NOVAGOLD: The Management Team
NOVAGOLD: The Management Team INDUSTRY LEADERS TO BRING DONLIN GOLD THROUGH PERMITTING & BEYOND ▸ Former President of Barrick Gold North America Gregory Lang ▸ 35 years experience building & operating major mines President & CEO ▸ Intimate knowledge of Donlin Gold ▸ Former EVP and General Counsel of
Slide 30: NOVAGOLD: The Board of Directors
NOVAGOLD: The Board of Directors Dr. Thomas Kaplan Chairman and CIO of The Electrum Group LLC, a privately held natural resources investor Chairman that controls a diversified portfolio of precious and base metals assets Former Chief Legal Officer and Corporate Secretary with Franco-Nevada, transfor
Slide 31: 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 32: 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 33: 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]