Novagold Resources Inc. · AMEX:NG
Novagold Resources — Q1 2023 Earnings Presentation
35 slides from Novagold Resources's earnings presentation, Apr 5, 2023
Slide 1: 2023 First Quarter Financial Results and Donlin Gold Update
2023 First Quarter Financial Results and Donlin Gold Update April 5, 2023 TSX, NYSE American: NG | novagold.com
Slide 2: Introduction: First Quarter 2023 webcast & conference call agenda
Introduction First Quarter Mélanie Hennessey Vice President, Corporate Communications 2023 webcast 2023 First Quarter Update & conference call Greg Lang President & Chief Executive Officer agenda 2023 First Quarter Financials David Ottewell Vice President & Chief Financial Officer Question & Answer
Slide 3: Cautionary Statements Regarding Forward-Looking 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 could prove to be This presentation includes certain “forward-looking information” and “forward-looking statements” (
Slide 4: Investment Thesis
Investment Thesis Greg Lang President & Chief Executive Officer 4 NOVAGOLD | 2023 First Quarter Financial Results & Project Update
Slide 5: Steadily Advancing the Donlin Gold Project Up the Value Chain
STEADILY ADVANCING THE DONLIN GOLD PROJECT UP THE VALUE CHAIN Executing the explicit strategy that was set forth by the CEO & Chairman more than a decade ago ▪ Unlocking the value of NOVAGOLD’s several high-quality assets for our shareholders and to dedicate our entire energy toward creating the max
Slide 6: Why Invest in NOVAGOLD?
SIZE 39Moz gold contained in measured WHY INVEST IN NOVAGOLD? and indicated mineral resources2 PARTNERSHIPS LEVERAGE BALANCE SHEET Time-tested partnerships with Alaska Native Corporations Excellent leverage to a rising gold price Cash and term deposits of $116 million with $25 million of Donlin Gold
Slide 7: Donlin Gold: Positioned to Become a Million-Ounce Gold Producer
DONLIN GOLD POSITIONED TO BECOME A MILLION-OUNCE GOLD PRODUCER 1 Anticipated to be one of the highest gold producers in the Americas Donlin Gold’s 1.20 27-year mine life 1.101 Projected annual gold production (millions of ounces) 1.03 1.00 1.10 Moz/yr1 0.80 0.60 0.39 0.40 0.40 0.36 0.37 0.35 0.30 0.
Slide 8: Double the Global Average Gold Grade
DONLIN GOLD DOUBLE THE GLOBAL AVERAGE GOLD GRADE 1 Among the world’s highest-grade known open-pit gold deposits 2.24 g/t While global average gold grades are declining, Donlin Gold’s grade 1.03 provides resilience through commodity price cycles g/t Global average grade1 Donlin Gold average grade2 Se
Slide 9: Significant Value Upside with Higher Gold Prices
DONLIN GOLD SIGNIFICANT VALUE UPSIDE WITH HIGHER GOLD PRICES $35.0 31.6B ▪ Project return increases $30.0 substantially with higher gold Net Present Value (NPV) (US$ in Billions) prices1 ▪ Good payback at a broad $25.0 22.5B range of gold prices ▪ Long mine life offers high $20.0 17.5B likelihood of
Slide 10: 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 Far Side 8km ▪ From 2006 to 2011, M&I Queen resources increased 135% (16.6Moz1 to Snow Quartz Ophir ACMA Pit Dome 39.0Moz2 on 100% basis) Lewis Pit ▪ Gold resource defined 3k
Slide 11: 2022 Drill Program Delivered Among the Best Assay Results in the Gold Industry
DONLIN GOLD 2022 DRILL PROGRAM CONSISTENTLY DELIVERED AMONG THE BEST ASSAY RESULTS IN THE GOLD INDUSTRY GLOBALLY Donlin Gold’s largest drill program in 15 years – Top 20 signifiant intervals1 Hole ID Location Date Reported From (m) To (m) Length Grade (m) (g/t Au) ▪ The 141-hole, 42,331m2 drill DC22
Slide 12: Great Leverage in a Place Where You Can Keep It
DONLIN GOLD GREAT LEVERAGE IN A PLACE WHERE YOU CAN KEEP IT Comparing the top three gold producing operations1 and five largest gold development projects2 Olimpiada KSM Projects/ Grade M&I* Sukhoi Log Operations (g/t) Muruntau Gold development projects Livengood Donlin Gold 39.03 2.244 Blackwater 11
Slide 13: 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 Calista Corporation Land valuable for resource “ The Donlin Gold Project is important to Calista because of the potential it has not only for
Slide 14: 2023 First Quarter Highlights
2023 First Quarter Highlights 14 NOVAGOLD | 2023 First Quarter Financial Results & Project Update
Slide 15: The Donlin Gold Camp Re-opened in the First Quarter 2023
DONLIN GOLD THE DONLIN GOLD CAMP RE-OPENED IN THE FIRST QUARTER 2023 Fieldwork underway to advance the Alaska Dam Safety certificates applications ▪ The 2023 field program commenced in February to complete the necessary fieldwork to collect geotechnical and hydrological information needed to advance
Slide 16: 2023 Off-Site Activities at Donlin Gold
2023 OFF-SITE ACTIVITES AT DONLIN GOLD Advancing a Federally permitted project toward an updated feasibility study decision Mine optimization: ▪ Completing updated geologic and resource models ▪ Reviewing key project assumptions, inputs, and design components for optimization ▪ Subject to a formal d
Slide 17: Time-Tested Partnerships with Alaska Native Corporation Partners Calista and TKC
DONLIN GOLD TIME-TESTED PARTNERSHIPS WITH OUR ALASKA NATIVE CORPORATION PARTNERS CALISTA AND TKC Community, environmental, and social investments through considerable outreach and engagement activities throughout the Yukon-Kuskokwim region Environmental and Social Initiatives Community Engagement ▪
Slide 18: NOVAGOLD Launches 2022 Annual Report
NOVAGOLD NOVAGOLD LAUNCHES 2022 ANNUAL REPORT Featuring special interview with Dr. Thomas Kaplan and Daniela Cambone View full report here: https://www.novagold.com/investors/financials/ 18 NOVAGOLD | 2023 First Quarter Financial Results & Project Update
Slide 19: 2023 First Quarter Financial Results
2023 First Quarter Financial Results David Ottewell Vice President & Chief Financial Officer 19 NOVAGOLD | 2023 First Quarter Financial Results & Project Update
Slide 20: Q1 2023 Operating Performance
NOVAGOLD Q1 2023 OPERATING PERFORMANCE Three months ended February 28, (US$ millions) 2023 2022 General and administrative $5.6 $5.2 Donlin Gold 4.5 4.0 Operating loss 10.1 9.2 Other expense, net1 0.6 0.8 Net loss $10.7 $10.0 See endnotes for this slide in Appendix 20 NOVAGOLD | 2023 First Quarter F
Slide 21: Q1 2023 Cash Flow
NOVAGOLD Q1 2023 CASH FLOW Three months ended February 28, (US$ millions) 2023 2022 General and administrative1 $(3.4) $(3.1) Donlin Gold (5.7) (5.9) Working capital, interest and other (0.6) (2.9) Withholding tax on share-based compensation — (2.1) Decrease in cash and term deposits (9.7) (14.0) Ca
Slide 22: Maintaining a Strong Treasury
NOVAGOLD MAINTAINING A STRONG TREASURY Due from Newmont Cash and term deposit balance on February 28, 2023 in July 20231 $116M $25M $0 $50 $100 $150 2023 Budget2 Donlin Gold project expenditures $17M Corporate G&A $13M Working capital and other items $1M Total $31M See endnotes for this slide in App
Slide 23: Upcoming Catalysts
NOVAGOLD UPCOMING CATALYSTS Steadily advancing the Donlin Gold project up the value chain ▪ Update resource model ▪ Complete trade-off studies ▪ Moving to approval of an updated Feasibility Study v “ Possessing the unique combination of industry-leading size, grade, and excellent exploration upside
Slide 24: Strong Institutional Shareholder and Management Support
NOVAGOLD STRONG INSTITUTIONAL SHAREHOLDER AND MANAGEMENT SUPPORT The10 largest shareholders represent 66.2% of shares issued and outstanding1 Executive Officers’ ownership has increased to ~2.8 million2 shares since joining the company 66.2% 33.8% top 10 shareholders 25.3% Electrum Strategic Resourc
Slide 25: Appendix
Appendix 25 NOVAGOLD | 2023 First Quarter Financial Results & Project Update
Slide 26: Mineral Reserves
MINERAL RESERVES Attributable to Donlin Gold Tonnage Grade Metal content NOVGAOLD *Mineral reserves and mineral resources GOLD kt g/t Au koz Au koz Au are reported on a 100% basis and on a 50% basis. Reserves1 NOVAGOLD and Barrick each own 50% Proven 7,683 2.32 573 287 of the Donlin Gold project. Pr
Slide 27: Mineral Resources
MINERAL RESOURCES Attributable to Donlin Gold Tonnage Grade Metal content *Mineral reserves and mineral resources are NOVGAOLD reported on a 100% basis and on a 50% basis. GOLD kt g/t Au koz Au koz Au NOVAGOLD and Barrick each own 50% of the Donlin Gold project. Resources2, exclusive of Reserves Don
Slide 28: Donlin Gold S-K 1300 Technical Report Summary
DONLIN GOLD S-K 1300 Technical Report Summary – Donlin Gold project, Alaska, USA dated November 30, 2021 (100% basis) Key financial economic & production aata LOM operating costs Initial capital costs $7.4B Area $/t Processed $/t Mined $/oz Au Sustaining capital costs over LOM (27 years) $1.7B Mine
Slide 29: Permitting Update
DONLIN GOLD PERMITTING UPDATE Key federal permits for the project received and state permitting is well-advanced Federal Permitting Completed State Permitting Completed ✓ Final Environmental Impact Statement (EIS) ✓ Air Quality ✓ Joint Record of Decision (ROD) by the Army Corps of ✓ Alaska Pollutant
Slide 30: Management
MANAGEMENT ▪ Former President of Barrick Gold North America Gregory Lang ▪ 40+ years experience building & operating major open-pit and underground mines (Goldstrike, Cortez, President and CEO Turquoise Ridge, Bald Mountain) ▪ Diverse experience in mine operations, project development and evaluation
Slide 31: Board of Directors
BOARD OF DIRECTORS ▪ Chairman and CEO of The Electrum Group LLC, a privately Dr. Thomas ▪ Chairman of Glencore plc, and director of Trilogy Metals and held natural resources investment management company Kalidas Dundee Precious Metals Inc. Kaplan that controls a diversified portfolio of precious and
Slide 32: Endnotes
ENDNOTES SLIDE 5 – Steadily advancing the Donlin Gold project up the value chain SLIDE 9 – Significant value upside with higher gold prices 1. As per the media release titled “NOVAGOLD Enters Agreement to Sell Its 50% Stake in Galore 1. Donlin Gold estimates as per the 2021 Technical Report and the
Slide 33: Endnotes
ENDNOTES SLIDE 12 – Great leverage in a place where you can keep it SLIDE 24 – Strong institutional shareholder and management support 1. Only three mines produced greater than 1 million ounces in 2021: Nevada Operations (3,467koz), 1. Shareholder positions are based on the latest 13-D, 13-F or 13-G
Slide 34: Endnotes
ENDNOTES SLIDES 22 & 23- Mineral reserves and Mineral resources 1. Mineral Reserves are reported within the pre-feasibility pit designs, and supported by a mine schedule, Technical Reports and Qualified Persons featuring variable throughput rates, stockpiling and cut-off optimization. The pit design
Slide 35: NOVAGOLD Resources Inc. contact details
NOVAGOLD RESOURCES INC. Mélanie Hennessey Suite 1860 – 400 Burrard Street VP, Corporate Communications Vancouver BC Canada V6C [email protected] 3A6 T: 604 669 6227 TF: 1 866 669 6227 F: 604 669 6272 E: [email protected] TSX, NYSE American: NG | novagold.com 35 NOVAGOLD | 2023 First Qua