NOVAGOLD Reports Fiscal Year 2023 Financial Results Completion of 2023 Fieldwork, Permits Maintained, and Continuous Work at Donlin Gold that Enhances the Project’s Value and Visibility Strong Treasury of $126M in Cash and Term Deposits
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NOVAGOLD Reports Fiscal Year 2023 Financial Results
Completion of 2023 Fieldwork, Permits Maintained, and Continuous Work at
Donlin Gold that Enhances the Project’s Value and Visibility
Strong Treasury of $126M in Cash and Term Deposits
Welcomed Ben Machlis as VP General Counsel & Promoted Richard Williams as
COO
▶ NOVAGOLD’s treasury remains healthy with $126 million in cash and term deposits as of November 30,
2023, which includes the $25 million note payment received from Newmont in July 2023, keeping
NOVAGOLD in a strong financial position to advance the Donlin Gold project up the value chain.
▶ The Donlin Gold fieldwork was safely and successfully completed in July with a total of 44 direct hire
employees, 63% being from the Yukon-Kuskokwim (Y-K) region.
▶ Trade-off studies and extensive analysis on project assumptions, inputs, design components for
optimization (mine engineering, metallurgy, hydrology, power, and infrastructure) were advanced to
inform the next steps in taking the project further up the value chain.
January 24, 2024 – Vancouver, British Columbia – NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the
Company”) (NYSE American, TSX: NG) today released its fiscal year 2023 financial results and an update on
Donlin Gold, its Tier One11 gold development project which NOVAGOLD owns equally with Barrick Gold
Corporation (“Barrick”).
Details of the financial results for the year ended November 30, 2023, are presented in the consolidated
financial statements and annual report on Form 10-K filed on January 24, 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 2023, the following milestones were achieved at NOVAGOLD and Donlin Gold:
▶ Successfully completed the Donlin Gold field program in July, which encompassed:
The completion of comprehensive fieldwork and geotechnical drilling required to complete
the Alaska Dam Safety certification applications;
Fieldwork to further characterize groundwater flow at the site, including 1,279 m of
hydrogeologic drilling with instrumentation and pump tests, providing important information
for mine planning and design;
Lyman family’s historic placer site restoration, with pond habitat creation advanced;
anticipated aquatic life access and use planned for the 2024 field season.
▶ Held meetings in Alaska with State officials and the U.S. Army Corps of Engineers (“Corps”) – in
partnership with Calista Corporation (“Calista”) and the village of Crooked Creek – to emphasize the
project's comprehensive environmental review and permitting processes, as well as the close
collaboration with Native Alaskan landowners.
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.
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▶ Further enhanced NOVAGOLD’s Environmental, Social and Governance (ESG) disclosure by reporting
in alignment with the Carbon Disclosure Project (CDP) and Task Force on Climate-Related Financial
Disclosures (TCFD) frameworks.
▶ Approved in December a Donlin Gold budget of $28.5 million (100% basis) for 2024 comprising of
resource modelling, mine planning work, metallurgical test work (pilot plant), regional infrastructure
support plan, geoscience hydrology and closure planning, advance dam safety certificates, support
litigation activities, as well as government affairs, community engagement and sponsorships at the
Donlin Gold LLC board level.
President’s Message
Driving the Donlin Gold Project Toward Development Through Unwavering
Commitment and Persistent Work
NOVAGOLD’s singular focus on advancing its exceptional project up the value chain is first and foremost
demonstrated through the Company’s increased investments in, and expanded partnerships with,
communities of the Y-K region. The extensive work completed on the Donlin Gold project in 2023 and to
date has added considerable value for all stakeholders, including Alaska residents and NOVAGOLD
shareholders, and contributed significantly to positioning the project for the next stage of development.
The safe and successful completion of this latest fieldwork program serves as yet another testament to the
exceptional teamwork, dedication, strategic planning, and adherence to health and safety protocols by
our employees, contractors, and the communities where we operate.
In February 2023, the Donlin Gold camp re-opened with a total workforce of 44 direct hire employees –
63% of whom came from the Y-K region. The 2023 program was successfully completed in July and
included comprehensive fieldwork and geotechnical drilling required to complete the Alaska Dam Safety
certificate applications. This involved data collection at the locations earmarked for water retention
structures, including the proposed Tailings Storage Facility (TSF). The fieldwork included 1,840 meters of
geotechnical drilling, 74 test pits, 25 kilometers of seismic survey, and TSF test plot liner installation.
Fieldwork to further define groundwater at the site included 1,279 meters of hydrogeologic drilling with
instrumentation and pump tests, providing important information for mine planning and design.
At the historic Lyman placer site, restoration work included significant pond habitat creation. Additional
work including reconnecting the pond to Crooked Creek to facilitate aquatic life access and use is planned
for the 2024 field season.
Work included advancing the geologic and resource models; trade-off studies, extensive analysis on key
project assumptions, inputs, and design components for validation and optimization (mine engineering,
metallurgy, hydrology, and infrastructure) to inform the next steps in taking the project further up the
value chain. Additionally, remaining permits were advanced through the regulatory process, continued
support of the Federal and State agencies in maintaining the existing permits; and through continued
engagement, sustaining and expanding project support in the Y-K region.
The Donlin Gold LLC board and the project’s owners are firmly committed to prioritizing engineering
excellence, environmental stewardship, a robust safety culture, and sustained community engagement in
this endeavor.
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Alongside Native Corporation Partners, Calista and TKC, Upholding Donlin Gold’s
Social License Through Continuous and Meaningful Engagement with All
Stakeholders
In collaboration with Calista and The Kuskokwim Corporation (TKC), Donlin Gold actively engages
stakeholders and governments in the Y-K region, Alaska, and Washington, D.C. The project's location on
private land designated by law for mining under the 1971 Alaska Native Claims Settlement Act is a
distinctive feature, setting it apart from other mining assets in Alaska and guiding our advocacy efforts.
Donlin Gold’s enduring partnerships with Calista and TKC are pivotal in facilitating comprehensive
outreach throughout the Y-K region. Our commitment to meaningful tribal engagement, reinforced by
decades of deep community involvement, is integral to the project's development. These time-tested
bonds continue to drive all aspects of our outreach and engagement activities.
In 2023, Donlin Gold reaffirmed this commitment by appointing additional community liaison
representatives from the local villages of Nunapitchuk, Tuluksak, Pilot Station, and Kwigillingok –
expanding the group’s total to eight. It also established three additional Shared Values Statements, for a
total of 16, which formalize Donlin Gold’s ongoing engagement with local communities, reinforce existing
long-term relationships, and address specific community needs. This past year, Donlin Gold conducted
over 7,000 direct engagements, establishing meaningful interactions and communication channels with
key stakeholders. These activities encompassed a diverse range of interactions – including discussions,
consultations, and collaborative sessions – underscoring our commitment to fostering transparent and
open dialogue with those individuals and institutions that are essential to Donlin Gold’s success.
In collaboration with Calista and the village of Crooked Creek, Donlin Gold continued its proactive
bipartisan outreach in Alaska to emphasize the thoroughness of the project’s environmental review and
permitting procedures, alongside strong partnerships with Native Alaskans who own the land. This
comprehensive effort extended to Washington, D.C., where gatherings were held with members of
Alaska’s Congressional delegation and senior leadership from the U.S. Department of Interior. The
ongoing bipartisan outreach campaign targeted the Biden Administration and the U.S. Congress, with
notable participants including U.S. Senators Lisa Murkowski and Dan Sullivan, along with U.S.
Representative Mary Peltola from the Y-K region. Furthermore, Donlin Gold received recognition from
Rep. Peltola at the Alaska Oil & Gas Association’s Annual Conference, acknowledging the Company’s
exceptional project outreach and community engagement efforts. Donlin Gold’s commitment to fostering
positive relationships and actively involving local communities in the Y-K region reflects the importance
we place on responsible and sustainable resource development in Alaska.
Advancing Cultural Preservation, Education, Community Wellness, and
Environmental Initiatives in the Y-K Region
NOVAGOLD maintains a longstanding commitment to education, community wellness, cultural
preservation, and environmental stewardship – actively reinforcing these goals at the Donlin Gold project
site and within the communities of the Y-K Region. With a focus on supporting initiatives such as fisheries
studies, environmental activities, subsistence, cultural preservation, and grants, NOVAGOLD strongly
emphasizes community and social responsibility. Through continuous collaboration with Calista and TKC,
alongside other key representatives of local communities, our collective efforts provide critical support to
the Y-K region. This ongoing commitment ensures the sustainable and profitable development of Donlin
Gold in the years to come, with a diverse array of projects and activities contributing to these overarching
objectives in 2023.
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Donlin Gold supported various search and rescue teams throughout the Y-K region, provided funding to
the Bethel Community Services Foundation and Special Olympics Alaska, as well as sponsored and
participated in the Alaska Safe Riders initiative, which promotes the safe riding of snowmachines, all-
terrain-vehicles and recreational off-road vehicles. In addition, NOVAGOLD, in collaboration with
Covenant House Alaska and Bethel Community Services, is developing an action plan to help address
chronic and ongoing youth food insecurity in the Y-K region. These parties have successfully leased space
from Bethel Winter House towards establishing a housing and service hub for young adults aged 18 to 24.
Furthermore, Donlin Gold partnered with the Bethel Community Services Foundation and the Aruqutet
Project on a regional program to address food insecurity throughout the Bethel community. Over 550
local households are enrolled in the program to date. Employing local staff and committed volunteers has
proven critical to the program’s success.
As an annual sponsor of the Rural Alaska Community Action Program, Donlin Gold upholds its
longstanding support by recruiting and placing local elders in Y-K schools. This program facilitates the
transmission of traditional knowledge and values, enriching the educational experience for students
across the region. In addition, Donlin Gold has strengthened its sponsorship of the First Alaskans Institute,
as well as extended support and actively participated in key events such as the Elders & Youth statewide
conference and the Alaska Federation of Natives annual convention. These sustained efforts foster cultural
enrichment and community engagement.
In collaboration with the village of Napaimute, Donlin Gold actively participated in and provided principal
support to the “In It For The Long Haul” backhaul program for the sixth year in a row. This vital project is
dedicated to the collection, removal, and safe disposal of household hazardous and electronic wastes
from villages across the Y-K region, preventing its adverse impact on landfills and waterways. The
program achieved significant new milestones in 2023, including the removal of waste from fish camps in
the Middle Kuskokwim area and the initiation of waste backhaul operations along the Yukon River. In
total, this year’s program successfully collected and disposed of approximately 235,000 pounds of waste.
Donlin Gold also supported 52 villages as part of the annual “Clean-Up Green-Up program”, which seeks
to collect and dispose of trash from the tundra, roads, public areas and beaches in the Y-K region that
accumulate over the winter months.
Donlin Gold has been increasingly focused on collaborating with our Alaska Native Corporation partners
to monitor and assess the conditions and management of salmon fisheries in the Kuskokwim and Yukon
River watersheds. In the fourth quarter of 2023, we initiated the identification of specific potential project
opportunities aimed at monitoring, evaluating, and enhancing the health of salmon populations. In the
coming first quarter, Donlin Gold will identify key projects to support with work expected to commence in
the third quarter of 2024. All such projects will be executed in full collaboration and partnership with the
people of the Y-K region. Furthermore, in collaboration with TKC, the village of Crooked Creek, the Akiak
Native Community and the Napaimute Tribe, Donlin Gold provided financial support for the construction
and maintenance of the ice roads that allow for winter travel between the remote Kuskokwim River
communities – which, in turn, led to increased participation in community events, including cultural
activities and sports, but also provided critical access for emergency services, law enforcement and travel.
On average, a total of 300 miles of ice road is constructed and maintained annually.
Education is a cornerstone of Donlin Gold’s community engagement efforts, characterized by a steadfast
commitment to advancing educational opportunities in Alaska. Collaborating closely with Alaska Resource
Education, Donlin Gold actively supports the mission of educating Alaskan students about the state’s
natural resources. In addition, the Company extends its dedication to education by backing the Alaska
School Activities Association – a statewide non-profit organization that directs, develops, and supports
high school interscholastic sports, academic, and fine arts activities across Alaska. NOVAGOLD also
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contributes to educational advancement by funding an annual scholarship at the University of Alaska. This
scholarship is specifically designed to support underrepresented students pursuing majors in Mine
Engineering and Geology, thereby contributing to the development of future talent in these essential
professional fields.
Collaborating to Maintain Existing Permits in Good Standing and Secure
Outstanding State Permits
Navigating the intricate permitting process in the United States and Alaska constitutes a rigorous
undertaking, demanding years of dedicated effort to ensure a diligent, thorough, transparent, and
inclusive approach that engages all stakeholders – particularly those from the Y-K region. Donlin Gold,
alongside both its owners and its partners Calista and TKC, possesses a strong command of the project’s
permitting and regulatory procedures and works closely with the Federal and State agencies to maintain
the project’s permits in good standing, with a specific focus on advancing the Alaska Dam Safety
Certificates.
Part of the 2023 field program was focused on geotechnical and hydrological drilling to gather
supplementary data for the Alaska Dam Safety Certificates application process. The fieldwork concluded in
July, and the team is on track to submit the preliminary design packages to the Alaska Department of
Natural Resources (“ADNR”) in the first half of 2024. We anticipate the Certificates will be issued in 2026.
The new air quality permit based on updated air quality modeling and emissions controls information was
issued in July 2023. The Alaska Pollutant Discharge Elimination System permit (“APDES”), which originally
expired in 2023, and the Waste Management Permit, which originally was to expire in January 2024, are
administratively extended pending renewal by the Alaska Departments of Environmental Conservation
(“ADEC”). The Reclamation Plan approval, which was also to expire in January 2024, is administratively
extended to January 2025.
On August 18, 2023, the ADNR Commissioner reaffirmed ADEC’s issuance of the 401 Certification (Alaska
water quality certification) – following an appeal by Earthjustice, representing the Orutsararmiut Native
Council (ONC). The suspension of the previously filed Alaska Superior Court case was then lifted and the
Earthjustice and ONC’s opening brief was filed on January 5, 2024.
On September 1, 2023, the Alaska Superior Court affirmed the ADNR’s decision on Donlin Gold’s water
rights permits, following unsuccessful appeal to the ADNR Commissioner. On October 2, 2023,
Earthjustice appealed the Superior Court decision to the Alaska Supreme Court. Earthjustice filed their
opening brief with the Supreme Court on January 4, 2023.
On April 12 and July 3, 2023, the Alaska Superior Court affirmed the ADNR’s issuance of the State Right-
of-Way (“ROW”) lease in the Earthjustice and Robert Fithian cases, respectively. The decision in the
Earthjustice case has been appealed to the Alaska Supreme Court. Earthjustice’s opening brief was
submitted on September 22, 2023. The State of Alaska, Calista, and Donlin Gold’s reply briefs were
submitted on January 3, 2023. Mr. Fithian did not appeal to the Alaska Supreme Court.
In the Federal litigation challenging the Donlin Gold Joint Record of Decision, including the 404 permit
issued by the Corps and ROW lease for the portions of the pipeline located on Federal lands issued by the
Bureau of Land Management of the U.S. Department of Interior, the U.S. Department of Justice (DOJ) is
finalizing compilation of the Administrative Record for the court. The briefing schedule was agreed upon
in the fourth quarter and will extend through the first half of 2024.
Despite the challenges mentioned above, all appeals against Donlin Gold permits have been unsuccessful
to date – thereby reinforcing our confidence in the thorough permitting process. Acknowledging the
importance of readiness and organization, along with unwavering support from Donlin Gold and its
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owners, we remain committed to backing all agencies in defending the comprehensive permitting
processes. Our approach emphasizes preparedness for potential challenges to Federal and State permits,
reflecting the normative landscape in the United States. The project’s leadership and litigation teams –
which are intimately familiar with the permitting process and procedures – closely collaborate with Donlin
Gold and its owners, supported by the unwavering advocacy of Calista and TKC, to provide steadfast
support to State and Federal government agencies in defending the permitting process.
Protecting a Valuable Asset in a Rising Gold Price Environment while Maintaining
a Strong Treasury to Steward the Advancement of Donlin Gold
NOVAGOLD believes the Donlin Gold project represents a premier investment opportunity to leverage a
surge in the gold market among gold equities – hence establishing NOVAGOLD as the optimal choice to
pursue such a thesis. Situated in Alaska, a secure and proven mining jurisdiction, our project holds
unparalleled potential, reflecting our longstanding commitment to guide this remarkable asset through its
progression up the value chain in a responsible and prudent manner. With unrivaled attributes,
encompassing industry-leading size, grade, and considerable exploration potential, Donlin Gold stands as
one of the best development assets in the gold industry. Boasting approximately 39 million ounces of
gold with a grade of 2.24 grams per tonne in Measured and Indicated Mineral Resources (100% basis),
inclusive of Proven and Probable Mineral Reserves, and projecting an annual production of 1.1 million
ounces over a 27-year period, Donlin Gold has the potential to constitute a cost-effective generational
gold mine. Furthermore, exploration opportunities extend well beyond the current resource areas, which
covers only a fraction of the extensive land package. These factors collectively position Donlin Gold as a
compelling narrative in gold development, underscored by NOVAGOLD's unwavering commitment to
responsible mining, trust-building, and sustained project improvement.
NOVAGOLD’s thorough and time-tested strategy has continuously elevated Donlin Gold up the value
chain, maintaining robust financial health without requiring additional equity issuances since January
2012. As of November 30, 2023, our treasury stands at $126 million, strengthened by a $25 million note
payment from Newmont in July 2023, providing ample resources to fund our share of the Donlin Gold
project over at least the next three years at current spending levels. Over the past decade, our leadership
team has demonstrated diligence, responsible stewardship, and effective risk reduction – a commitment
that aligns with fulfilling every single promise made to shareholders since 2012.
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2024 Activities and Next Steps for Donlin Gold
At the December 2023 Donlin Gold LLC board meeting, NOVAGOLD proposed proceeding to an updated
feasibility study while Barrick proposed continued drilling campaigns. Even though the owners did not
agree to either proposal at the December meeting, they found common ground on value-adding activities
that advance the project. Thus, while discussions continue regarding next steps, the Donlin Gold LLC
board approved a budget of $28.5 million (100% basis) for 2024, comprising resource modelling, mine
planning work, metallurgical test work (pilot plant), regional infrastructure support planning, geoscience
hydrology and closure planning, advancement of the dam safety certificate applications, and continued
support of pending litigation, government affairs, community engagement activities, and sponsorships.
NOVAGOLD will continue to employ concerted and inclusive efforts to advance the Donlin Gold project
for the benefit of all our shareholders and Donlin Gold stakeholders.
NOVAGOLD Management Appointments and Promotions
I would also like to congratulate Richard Williams on his promotion as Chief Operating Officer for
NOVAGOLD, effective January 1, 2024, and welcome Benjamin (“Ben”) Machlis who recently joined us as
NOVAGOLD’s Vice President and General Counsel.
Richard has led the engineering and technical program at NOVAGOLD for over a decade. His knowledge
and commitment to the company has been pivotal in the development and continued success of the Donlin
Gold project since joining the NOVAGOLD team in 2012. Previously, Richard spent over 30 years with Barrick
Gold developing and operating major mines. He has extensive experience in autoclave technology served
as Project Director of the Pueblo Viejo mine in the Dominican Republic. Richard’s seven- year tenure at
Pueblo Viejo capped a career where he progressively held top operating roles which included the design,
construction and operation of mineral processing facilities of major mines such as Goldstrike in Nevada and
Mercur in Utah.
Ben, is an experienced natural resources and environmental attorney. Ben spent the last seven years as a
partner at Dorsey & Whitney where he chaired its regulatory affairs practice group, which houses its natural
resources, energy, environmental, cybersecurity, workplace safety, and telecom attorneys and represented
mining, renewable development, and other industrial companies on permitting, project development,
operational compliance, closure, and remediation issues. Prior to Dorsey & Whitney, Ben was with the law
firm Holland & Hart and served as an environmental policy advisor at the Utah Governor's Office. He
received his undergraduate and J.D. degrees from the University of Utah.
With NOVAGOLD consistently delivering on its commitments, Donlin Gold is poised for gold development
success. Mitigating risks, embracing responsible mining, and fostering trust, we have successfully
unlocked the value of our high-quality asset while safeguarding a robust treasury. These accomplishments
are the result of sustained and dedicated teamwork across various fronts – from Donlin Gold site
programs and permitting efforts to community outreach and environmental initiatives. In the years to
come,
Heartfelt gratitude and appreciation go to our colleagues, partners, Board members, and indeed our
shareholders, for their unwavering support. As we begin 2024, we remain steadfastly committed to
delivering on promises made and ever more excited to achieve further milestones – together.
Sincerely,
Gregory A. Lang
President and CEO
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Financial Results
in thousands of U.S. dollars, except for per share amounts
Year ended
November 30, 2023
$
Year ended
November 30, 2022
$
General and administrative expense (1) 21,783 20,109
Share of losses – Donlin Gold 18,529 28,163
Total operating expenses 40,312 48,272
Loss from operations (40,312) (48,272)
Interest expense on promissory note (13,063) (7,962)
Interest and dividend income 5,791 1,591
Accretion of notes receivable 579 849
Remediation expense (541) (366)
Other income, net 782 784
Income tax recovery (expense) (39) 33
Net loss (46,803) (53,343)
Loss per share, basic and diluted (0.14) (0.16)
At
November 30, 2023
$
At
November 30, 2022
$
Cash and term deposits 125,749 125,882
Total assets 133,290 159,189
Total liabilities 141,513 129,286
The net loss decreased by $6,540 from 2022, primarily due to lower field expenses at Donlin Gold,
increased interest income, and other income related to the 2021 sale of the Company’s interest in the San
Roque mineral property, partially offset by an increase in interest expense on the promissory note and
higher general and administrative expenses.
Donlin Gold expenses were lower in 2023 with fieldwork and geotechnical drilling completed in July for
the Alaska Dam Safety certificate applications and hydrological drilling to support mine planning and
design, compared to the large exploration drilling program in 2022. General and administrative costs
increased due to higher corporate travel costs, legal expenses, and PSUs granted to the Company’s
executive officers on December 15, 2022, as a retention incentive that will vest if their employment
continues through June 30, 2024. Higher interest rates in 2023 impacted interest income on cash and term
deposits and interest expense on the promissory note. The average effective interest rate on the
promissory note increased from 6.8% in 2022 to 10.3% in 2023.
During the fourth quarter of 2023 we incurred a net loss of $10,421 compared to a net loss of $12,255 in
2022. The decrease in net loss primarily resulted from reduced activity at Donlin Gold and higher interest
income, partially offset by increased interest on the promissory note. The average effective interest rate
on the promissory note increased from 6.8% in 2022 to 10.3% in 2023.