Determined to Advance Donlin Gold to an Updated Feasibility Decision
Unlocking Value Through Ongoing Technical Work, Comprehensive Engagement and Proactive Social Outreach Efforts
Robust Treasury of $113 Million in Cash and Term Deposits
VANCOUVER, British Columbia, June 26, 2024 (GLOBE NEWSWIRE) — NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the Company”) (NYSE American, TSX: NG) today released its 2024 second quarter financial results and an update on its Tier One 1 gold development project, Donlin Gold, which NOVAGOLD owns equally with Barrick Gold Corporation (“Barrick”). Details of the financial results for the quarter ended May 31, 2024, are presented in the consolidated financial statements and quarterly report filed on Form 10-Q on June 26, 2024, that is available on the Company’s website at www.novagold.com, on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov. All amounts are in U.S. dollars unless otherwise stated. In the second quarter of 2024, the following milestones were achieved:- Donlin Gold activities included:
- Advancement of metallurgical test work (pilot plant) to confirm proposed optimizations to the flowsheet;
- The preliminary design packages for the Dam Safety Certification were submitted on June 17, 2024;
- Progression of regional infrastructure support planning to narrow the scope of work and advance regional energy partnership opportunities;
- Incorporation of recent Donlin Gold field data in geosciences and hydrology to update the groundwater model and surface water model, and continuation of data collection to update geochemical characteristics for closure planning; and
- Ongoing resource modelling by a third-party consultant.
- In collaboration with Calista Corporation (“Calista”) and The Kuskokwim Corporation (TKC), Donlin Gold achieved significant milestones in education, health and safety, cultural preservation, and environmental initiatives:
- Finalized an additional Shared Values Statement in the Yukon-Kuskokwim (Y-K) region near the project, increasing the total to 17;
- Held the third Subsistence Community Advisory Committee (SCAC) meeting in Aniak;
- Identified and began planning for specific project opportunities aimed at monitoring, evaluating, and enhancing the health of salmon populations throughout the Y-K region;
- Participated in a three-day Alaska Native Village Corporation Association (ANVCA) conference in Anchorage, presenting on revenue sharing and addressing questions on funding and rural Alaska opportunities;
- Sponsored the Alaska School Activities Association (ASAA) March Madness Alaska basketball tournament; and
- Financially supported various educational initiatives and programs, including the Lower Kuskokwim School District’s annual college and career fair.
- Joined the Crooked Creek Traditional Council on a visit to Washington, D.C. to voice their support for the Donlin Gold project in meetings with the U.S. Department of Justice and Alaska Congressional Delegation;
- Received continued support from U.S. Senators Lisa Murkowski and Dan Sullivan and U.S. Representative Mary Peltola, who jointly submitted an amicus brief in Federal court, referring to Donlin Gold as one of the State’s “most important and necessary economic development projects”; and
- NOVAGOLD extends its sincere appreciation to David Ottewell, its long-serving Vice President and Chief Financial Officer (CFO) and wishes him well on his upcoming retirement. The Company would also like to welcome and congratulate Peter Adamek, who will replace Mr. Ottewell as CFO effective July 15, 2024.
Three months ended May 31, 2024 $ | Three months ended May 31, 2023 $ | Six months ended May 31, 2024 $ | Six months ended May 31, 2023 $ | |||||
General and administrative expense (1) | 7,603 | 5,535 | 13,862 | 11,142 | ||||
Share of losses – Donlin Gold | 3,990 | 7,543 | 6,951 | 12,018 | ||||
Total operating expenses | 11,593 | 13,078 | 20,813 | 23,160 | ||||
Loss from operations | (11,593) | (13,078) | (20,813) | (23,160) | ||||
Interest expense on promissory note | (3,702) | (3,212) | (7,299) | (6,156) | ||||
Interest and dividend income | 1,520 | 1,350 | 3,071 | 2,679 | ||||
Other income (expense), net | 674 | 74 | 1,722 | 970 | ||||
Accretion of notes receivable | — | 217 | — | 434 | ||||
Income tax expense | (599) | — | (699) | (75) | ||||
Net loss | (13,700) | (14,649) | (24,018) | (25,308) | ||||
Loss per share, basic and diluted | (0.04) | (0.04) | (0.07) | (0.08) | ||||
At | At | |||||||
May 31, 2024 $ | November 30, 2023 $ | |||||||
Cash and term deposits | 112,568 | 125,749 | ||||||
Total assets | 121,577 | 133,290 | ||||||
Total liabilities | 149,049 | 141,513 |
(1) | Includes share-based compensation expense of $2,395 and $2,140 in the second quarter of 2024 and 2023, respectively; and $4,804 and $4,301 in the first six months of 2024 and 2023, respectively. |
Our anticipated expenditures in fiscal year 2024 are approximately $31,200, including $14,250 to fund the Donlin Gold project, and $16,950 for corporate general and administrative costs.
NOVAGOLD’s primary goals in 2024 are to aid and enable the strategic direction developed and approved by the board; advance Donlin Gold toward a feasibility study/construction decision/production; maintain a favorable reputation of the Company and its project among shareholders; promote a strong ESG culture including safety, community outreach, sustainability and environment; manage Company treasury effectively and efficiently; and streamline corporate structure. Our operations primarily relate to the delivery of project milestones, including the achievement of various technical, environmental, sustainable development, economic and legal objectives, obtaining necessary permits and maintaining those received in good standing, completion of pre-feasibility and feasibility studies, preparation of engineering designs and the financing to fund these objectives. Conference Call & Webcast Details NOVAGOLD’s conference call and webcast to discuss these results will take place on June 27, 2024, at 8:00 am PT (11:00 am ET). The webcast and conference call-in details are provided below.Video Webcast: | www.novagold.com/investors/events |
North American callers: | 1-844-763-8274 |
International callers: | +1-647-484-8814 |
▶ | Q3 2024 – Wednesday, October 2, 2024; 10-Q and a Donlin Gold project update will be released after market close. A conference call and webcast will be held on Thursday, October 3, 2024 at 11:00 am ET / 8:00 am PT to discuss Q3 financial results. |
1 NOVAGOLD defines a Tier One gold development project as one with a projected production life of at least 10 years, annual projected production of at least 500,000 ounces of gold, and average projected cash costs over the production life that are in the lower half of the industry cost curve. 2 Per the 2024 Mineral Commodity Summaries Report – https://pubs.usgs.gov/periodicals/mcs2024/mcs2024-gold.pdf . 3 Donlin Gold data as per the report entitled “NI 43-101 Technical Report on the Donlin Gold Project, Alaska, USA” with an effective date of June 1, 2021 (the “2021 Technical Report”) and the report titled “S-K 1300 Technical Report Summary on the Donlin Gold Project, Alaska, USA” (the “S-K 1300 Technical Report Summary”), dated November 30, 2021. Donlin Gold possesses Measured Resources of approximately 8 Mt grading 2.52 g/t and Indicated Resources of approximately 534 Mt grading 2.24 g/t, each on a 100% basis and inclusive of Mineral Reserves, of which approximately 4 Mt of Measured Resources and approximately 267 Mt of Indicated Resources inclusive of Reserves is attributable to NOVAGOLD through its 50% ownership interest in Donlin Gold LLC. Exclusive of Mineral Reserves, Donlin Gold possesses Measured Resources of approximately 1 Mt grading 2.23 g/t and Indicated Resources of approximately 69 Mt grading 2.44 g/t, of which approximately 0.5 Mt of Measured Resources and approximately 35 Mt of Indicated Resources exclusive of Mineral Reserves is attributable to NOVAGOLD. Donlin Gold possesses Proven Reserves of approximately 8 Mt grading 2.32 g/t and Probable Reserves of approximately 497 Mt grading 2.08 g/t, each on a 100% basis, of which approximately 4 Mt of Proven Reserves and approximately 249 Mt of Probable Reserves is attributable to NOVAGOLD. Mineral Reserves and Resources have been estimated in accordance with NI 43-101 and S-K 1300. 4 Per Mining Journal intelligence – World Risk Report 2023 Alaska received an AA rating, ranks number 3 globally on the Investment Risk index and is in the top quartile for low-risk in each category (Legal, Governance, Social, Fiscal and Infrastructure). 5 Donlin Gold data as per the report entitled “NI 43-101 Technical Report on the Donlin Gold Project, Alaska, USA” with an effective date of June 1, 2021 (the “2021 Technical Report”) and the report titled “S-K 1300 Technical Report Summary on the Donlin Gold Project, Alaska, USA” (the “S-K 1300 Technical Report Summary”), dated November 30, 2021. Donlin Gold possesses Measured Resources of approximately 8 Mt grading 2.52 g/t and Indicated Resources of approximately 534 Mt grading 2.24 g/t, each on a 100% basis and inclusive of Mineral Reserves, of which approximately 4 Mt of Measured Resources and approximately 267 Mt of Indicated Resources inclusive of Reserves is attributable to NOVAGOLD through its 50% ownership interest in Donlin Gold LLC. Exclusive of Mineral Reserves, Donlin Gold possesses Measured Resources of approximately 1 Mt grading 2.23 g/t and Indicated Resources of approximately 69 Mt grading 2.44 g/t, of which approximately 0.5 Mt of Measured Resources and approximately 35 Mt of Indicated Resources exclusive of Mineral Reserves is attributable to NOVAGOLD. Donlin Gold possesses Proven Reserves of approximately 8 Mt grading 2.32 g/t and Probable Reserves of approximately 497 Mt grading 2.08 g/t, each on a 100% basis, of which approximately 4 Mt of Proven Reserves and approximately 249 Mt of Probable Reserves is attributable to NOVAGOLD. Mineral Reserves and Resources have been estimated in accordance with NI 43-101 and S-K 1300.