NovaGold Resources
Primary ticker: NYSE:NG, TSX:NG
Stage of development: Development
Primary minerals: Gold – precious metals
Project to promote: Donlin Gold project
Project location: Alaska
Website: www.novagold.com
NOVAGOLD RESOURCES INC. (TSX, NYSE American: NG) is a pure gold play focused on Alaska’s Donlin Gold project in equal partnership with Barrick Gold. Donlin is positioned to be one of the world’s largest gold mines, with 39 million ounces in measured and indicated mineral resources at a high average grade of 2.24 grams per tonne1 on a mineralized trend that occupies just 5 percent of its land package. We believe it offers investors extraordinary leverage to gold.
NOVAGOLD is in the enviable position of being well-funded with a cash balance of $130 million as of August 31, 2023, including the receipt of a $25 million note payment from Newmont in July 2023. NOVAGOLD is confident in our financial ability to cover projected expenses for our contribution to the Donlin Gold project through an updated feasibility study.
Cash: USD $130M (cash and term deposits)
Debt: NIL
Major shareholders:
Electrum Strategic Resources LP & Affiliates – 25.4%
Fidelity Management &
Research Company – 7.2%
Paulson & Co. Inc. – 6.7%
Blackrock Inc. – 6.1%
First Eagle Investment Management – 5.6%
Management Ownership – ~2%
Financials
Management Profile
Greg Lang – President & CEO
Mr. Greg Lang is NOVAGOLD’s President and Chief Executive Officer. Mr. Lang has over 40 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. Mr. Lang 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. He holds a Bachelor of Science in Mining Engineering from the University of Missouri-Rolla and is a Graduate of the Stanford University Executive Program.
Mélanie Hennessey – VP, Corporate Communications
Ms. Mélanie Hennessey is NOVAGOLD’s Vice President, Corporate Communications, responsible for all aspects of the Company’s internal and external communications functions and investor relations activities. Ms. Hennessey has extensive experience within the precious metals mining industry particularly in investor relations, corporate communications, crisis management as well as mergers and acquisitions. She is a public speaker advocating for stakeholder engagement, the advancement of individuals aspiring to executive-level positions and women in leadership roles. Prior to joining the Company, she served in a variety of executive and senior roles with such precious metals companies as Goldcorp Inc., New Gold Inc., and Hecla Mining Company. Ms. Hennessey holds a Bachelor of Arts degree in Communications and earned a Master of Business Administration degree from the University of Ottawa.
What is your rationale for taking part in 121 Mining Investment?
Our primary objective in participating at the 121 Mining Investment Conference is to engage with investors who share a keen interest in gold companies operating within secure jurisdictions. We believe that this event presents a valuable platform to connect with like-minded investors.
As we navigate our path towards development, we place great emphasis on transparency and communication. We are dedicated to keeping our existing stakeholders, as well as those expressing interest, well-informed about the latest progress and advancements at our Donlin Gold project situated in the stable jurisdiction of Alaska.
Our ultimate aim is to establish connections with both new and familiar faces who are eager to delve deeper into our company’s narrative, the Donlin Gold project, and explore the exciting potential for investment. We see this opportunity as an un-expiring warrant to the price of gold.
What recent news would you like to highlight to investors attending?
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What are your key goals in 3 months, 6 months, 12 months?
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12 Months:
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What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
At present, NOVAGOLD challenge of prevailing market conditions, which have resulted in diminished demand and subdued sentiment surrounding gold equities. This downturn is exacerbated by the recent decline in gold prices, placing added pressure on the performance of gold-related investments.
What do you think makes your company such a compelling investment?
Donlin Gold is a truly remarkable open-pit gold development project — characterized by its unique combination of rarity, sheer size, and development status. Located on private land designated by law for mining in Alaska, the second-largest gold-producing state in the United States, Donlin Gold aligns perfectly with the State’s commitment to environmentally and socially responsible resource development, making it an extremely appealing investment for those seeking peace of mind. This project holds the esteemed status of a true “Tier 1 Asset” in a world-leading jurisdiction and is anticipated to provide exceptional gold leverage and economic benefits for all stakeholders. As the leading gold development project in Alaska, a state renowned for its responsible mining practices, Donlin Gold, when built, is expected to serve as a cornerstone for genuine and sustainable economic growth in the Y-K region for years to come.
Boasting approximately 39 million ounces of gold with an impressive grade for an open pit project of 2.24 grams per tonne in Measured and Indicated Mineral Resources including Proven and Probable Mineral Reserves, and a projected mine life over 27 years, Donlin Gold possesses the potential to emerge as a sizeable low-cost gold producer with a solid foundation and significant growth opportunities. Exploration opportunities extend well beyond the current resource areas which cover only a fraction of the extensive
land package. These factors collectively position Donlin Gold as a captivating story in gold development, underscored by NOVAGOLD’s unwavering commitment to responsible mining, trust-building, and continual project improvement.
What are the top 3 key investor takeaways?
With Measured and Indicated Mineral Resources1 of approximately 39 million ounces of gold (541 million tonnes of gold at an average grade of 2.2 grams per tonne, inclusive of Proven and Probable Mineral Reserves of 34 million ounces of gold at an average grade of 2.09 grams per tonne), and an additional approximately six million ounces of Inferred Resources (92 million tonnes at an average grade of approximately 2.0 grams per tonne), Donlin Gold is one of the largest known undeveloped gold deposits today. As envisioned in the NI 43-101 Technical Report on the Donlin Gold Project, Alaska, USA and the S-K 1300 Technical Report Summary on the Donlin Gold Project, Alaska, USA, Donlin Gold has the potential to become one of the largest gold-producing mines in the world, producing approximately 1,500,000 ounces of gold annually in the first five years of operation and approximately 1,100,000 ounces per year over its 27-year life.
Beyond its already large mineral endowment, Donlin Gold has substantial exploration potential, with the opportunity to expand the current open-pit resource along strike and at depth. Considering that the current pit occupies only part of a three-kilometer segment of an eight-kilometer mineralized gold belt, in NOVAGOLD’s view it is possible that Donlin Gold’s mine life, already measured in decades, will be greater than anticipated.The leverage to higher gold prices Donlin Gold enjoys is exceptional. Its after-tax Net Present Value (NPV) at US$1,500 per ounce-gold and a 5% discount rate, was estimated at US$3,040 million, as fully described in the NI 43-101 Technical Report on the Donlin Gold Project, Alaska, USA and the S-K 1300 Technical Report Summary on the Donlin Gold Project, Alaska, USA
The fact that Donlin Gold is located in the United States gives NOVAGOLD a tremendous competitive advantage. Jurisdiction is an important issue today in the resources sector. One of the key questions that investors will be asking of mining companies is: where in the world are your assets located? Investing in the wrong region carries risks well beyond what you find in North America. With five major producing mines, Alaska is the second largest gold producing state in the United States.