NOVAGOLD

Website: www.novagold.com
Primary ticker: NYSE:NG, TSX:NG
Stage of development: Exploration, Development
Primary minerals: Gold
Project to promote: Donlin Gold
Company presentation: click here

Live financials

NOVAGOLD offers an unrivaled opportunity for investors seeking leverage to gold. Our 50 percent-owned flagship Donlin Gold project is a unique asset – in terms of size, grade, exploration potential, production profile, mine life, and jurisdictional safety – and is regarded as one of the largest, highest-grade, and most prospective known open pit gold deposits in the world. NOVAGOLD is in the advanced permitting stage and is well-funded with a cash balance of $157 million (May 31, 2019), sufficient to take the Donlin Gold project through the permitting process and fund its share of permitting and optimization advancement efforts.

Management Profile

Greg Lang, President & CEO

Greg Lang is NOVAGOLD’s President & CEO, with over 35 years of diverse experience in mine operations, project development and evaluations, including time as President of Barrick Gold North America, a wholly-owned subsidiary of Barrick Gold Corporation. He has held progressively responsible operating and project development positions over his 10-year tenure with Barrick and, prior to that, with Homestake Mining Company and International Corona Corporation, both of which are now part of Barrick. Greg holds a Bachelor of Science in Mining Engineering from the University of Missouri-Rolla and is a Graduate of the Stanford University Executive Program.


What is your rationale for attending 121 Mining Investment?

Connecting with funds, private equity, analysts and family offices


What recent news would you like to highlight to investors attending?

NOVAGOLD remains focused on its flagship Donlin Gold. NOVAGOLD and its 50% partner Barrick continue to refine technical work and advancement of key Alaska state permits required for the next phase of Donlin Gold’s development. NOVAGOLD is well positioned with a healthy treasury of $157M as of May 31, 2019 to deliver positive returns to shareholders as gold embarks upon higher levels.


What are your key goals for the next 3, 6 and 12 months?

3 Months:

We continue to support the Alaska State agencies in advancing permits for the Donlin Gold project. While the project has been granted a Federal Record of Decision (ROD) approving the Final Environmental Impact Statement (EIS), along with the Clean Water Act Section 404 and Rivers and Harbors Action Section 10 permits, we continue the process of securing all the requisite state permits.

6 Months:

Final approvals for 2 key state permits are expected by the end of 2019: the ADNR DMLW land use decisions for the project’s transportation corridor, including the access road and related material sites, air strip and port and the ADNR DOG’s authorization for construction of the sections of the pipeline on State lands.

12 Months:

Our focus is on integrating scoping-level optimization analyses into a study that should serve as the basis for an updated project development plan in collaboration with Barrick’s management and technical team.


What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

With key permitting activities largely complete, our focus is also on integrating scoping-level optimization analyses into a study that should serve as the basis for an updated project development plan. in this regard, NOVAGOLD is collaborating with Barrick’s new management and technical team to advance the project in a financially disciplined manner with a strong focus on further our geological understanding, engineering excellence, environmental stewardship and safety.


In a sentence, what do you think makes your company such a compelling investment?

NOVAGOLD offers an unrivaled opportunity for investors seeking leverage to gold. Our 50%-owned Donlin Gold project in Alaska is a unique asset in terms of size, grade, production profile, mine life, exploration potential and jurisdictional safety. With approximately 39 Moz gold in measured and indicated mineral resource categories, inclusive of proven and probable mineral reserves (541 million tonnes at an average grade of approximately 2.24 grams per tonne in the measured and indicated resource categories on a 100% basis), Donlin Gold is regarded to be one of the largest, highest-grade, and most prospective known open pit gold deposits in the world.

Analyst Insight – provided by Independent Investment Research

The company is a North American resource company with two major project interests – its 50%-owned, flagship Donlin Gold project and its 50%-owned Galore Creek project, which has the potential to be Canada’s largest and lowest-cost copper mine.

Donlin Gold’s world-class status is defined by seven distinguishing characteristics: exceptional reserve size and production capability, high grade for large-scale open-pit mining, significant exploration upside, leverage to higher gold prices, and location in a favourable jurisdiction with strong partnerships.

NOVAGOLD and its 50% partner Barrick continue to refine technical work and advancement of key Alaska state permits required for the next phase of Donlin Gold’s development. NOVAGOLD is well positioned with a healthy treasury of $140M as of February 2020 to deliver positive returns to shareholders as gold embarks upon higher levels.

The project aims to produce 1.1M oz of gold annually over a 27-year mine life at a head grade of 2.2g/t Au. With approximately 39 Moz gold in measured and indicated mineral resource categories, inclusive of proven and probable mineral reserves (541 million tonnes at an average grade of approximately 2.24 grams per tonne in the measured and indicated resource categories on a 100% basis), Donlin Gold is regarded to be one of the largest, highest-grade, and most prospective known open pit gold deposits in the world.

Furthermore, the project’s operating cash costs are expected to be $411 per ounce of gold during the first five years, and $635 per ounce of gold over the life of mine. Total all-in costs are expected to be $532 and $735 per ounce of gold during the first five years and over the life of mine, respectively.

Donlin Gold is expected to be a conventional open-pit, truck-and-shovel operation. The process plant will be fed with stockpiled low-grade ore for two additional years following the completion of production. Peak production rates are expected to reach 155 million tonnes per year (425,000 tonnes per day). The total estimated cost as per the second updated feasibility study published in November 2011 and amended in January 2012, to design and build the Donlin Gold project, would be $6.7 billion.