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 $106M (cash and term deposits)
Debt: NIL
Major shareholders:
Electrum Strategic Resources LP & Affiliates – 25.4%
Paulson & Co. Inc. – 8.1%
First Eagle Investment Management – 6.4%
Lingotto Investment Management – 5.8%
Fidelity Management & Research- 5.1%
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?
At the 121 Mining Investment Conference, we aim to connect with investors interested in gold companies in secure jurisdictions. This event is a great opportunity to engage with like-minded individuals.
As we move towards development, we prioritize transparency and communication, keeping our stakeholders updated on our Donlin Gold project in stable Alaska.
We look forward to meeting both new and familiar faces eager to explore our company and the potential for investment in Donlin Gold, viewing this as a lasting opportunity linked to the price of gold.
What recent news would you like to highlight to investors attending?
October 2, 2024 – NOVAGOLD Reports Third Quarter 2024 Financial Results
Focused on Progressing the Donlin Gold Project to a Fully Updated Feasibility Study
Wide-Ranging Community Involvement and Government Engagement to Sustain Donlin Gold’s Social License
Strong Treasury of Approximately $106 Million in Cash and Term Deposits
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
We are nearing the conclusion of our resource model update and have made significant progress in metallurgical testing at a pilot plant in Ontario, expected to be completed by the end of 2024.
Our Dam Safety Certification work is also progressing, with preliminary design packages submitted to the Alaska Department of Natural Resources in June, and feedback anticipated in 2025.
Additionally, we are updating our groundwater and surface water models using the latest field data to refine geochemical characteristics for operational and closure planning.
These technical advancements provide valuable insights for the Donlin Board and will guide our strategy moving forward.
6 Months:
We are nearing the conclusion of our resource model update and have made significant progress in metallurgical testing at a pilot plant in Ontario, expected to be completed by the end of 2024.
Our Dam Safety Certification work is also progressing, with preliminary design packages submitted to the Alaska Department of Natural Resources in June, and feedback anticipated in 2025.
Additionally, we are updating our groundwater and surface water models using the latest field data to refine geochemical characteristics for operational and closure planning.
These technical advancements provide valuable insights for the Donlin Board and will guide our strategy moving forward.
12 Months:
We are nearing the conclusion of our resource model update and have made significant progress in metallurgical testing at a pilot plant in Ontario, expected to finish by the end of 2024.
Our Dam Safety Certification work is advancing, with preliminary design packages submitted to the Alaska Department of Natural Resources in June and feedback expected in 2025.
We are also updating our groundwater and surface water models using the latest field data to refine geochemical characteristics for planning.
These efforts provide valuable insights for the Donlin Board, guiding our strategy to advance the project. Our top priority is to responsibly progress Donlin Gold through its development phases. Since 2012, NOVAGOLD has enhanced the project’s value without equity issuances, demonstrating our commitment to strategic growth.
In the current volatile market, Donlin Gold stands out as a rare “Tier 1 Asset” in a top mining jurisdiction, with a strong profile, low-cost structure, and significant exploration potential.
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?
We are nearing the conclusion of our resource model update and have made significant progress in metallurgical testing at a pilot plant in Ontario, expected to finish by the end of 2024.
Our Dam Safety Certification work is advancing, with preliminary design packages submitted to the Alaska Department of Natural Resources in June and feedback expected in 2025.
We are also updating our groundwater and surface water models using the latest field data to refine geochemical characteristics for planning.
These efforts provide valuable insights for the Donlin Board, guiding our strategy to advance the project. Our top priority is to responsibly progress Donlin Gold through its development phases. Since 2012, NOVAGOLD has enhanced the project’s value without equity issuances, demonstrating our commitment to strategic growth.
In the current volatile market, Donlin Gold stands out as a rare “Tier 1 Asset” in a top mining jurisdiction, with a strong profile, low-cost structure, and significant exploration potential.
What are the top 3 key investor takeaways?
Donlin Gold has Measured and Indicated Mineral Resources of approximately 39 million ounces of gold (541 million tonnes at an average grade of 2.2 grams per tonne), including Proven and Probable Reserves of 34 million ounces (2.09 grams per tonne), and an additional 6 million ounces of Inferred Resources (92 million tonnes at 2.0 grams per tonne). This makes it one of the largest undeveloped gold deposits today.
According to the NI 43-101 and S-K 1300 Technical Reports, Donlin Gold has the potential to become one of the world’s largest gold-producing mines, with an estimated annual output of 1.5 million ounces in the first five years and about 1.1 million ounces over its 27-year life.
The project also has substantial exploration potential, as the current pit occupies only a portion of an eight-kilometer mineralized gold belt, suggesting a longer mine life than currently anticipated. The project has a remarkable leverage to higher gold prices, with an estimated after-tax Net Present Value (NPV) of $11.2 billion at $2,500 per ounce gold and a 5% discount rate.
Located in the U.S., Donlin Gold offers NOVAGOLD a competitive advantage in today’s resource sector, where jurisdiction matters significantly. Alaska is the second-largest gold-producing state in the U.S., housing five major producing mines.