NOVAGOLD Reports Second Quarter 2024 Financial Results Determined to Advance Donlin Gold to an Updated Feasibility Decision Unlocking Value Through Ongoing Technical Work, Comprehensive Engagement and Proactive Social Outreach Efforts
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NOVAGOLD Reports Second Quarter 2024 Financial Results
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
June 26, 2024 – Vancouver, British Columbia – 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 One1 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;
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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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.
President’s Message
Continued Technical Efforts Enhancing Donlin Gold’s Project Development
As NOVAGOLD advanced its Donlin Gold work in the second quarter, the Company maintained its
steadfast commitment to moving the project forward through a collaborative and inclusive approach to
benefit all shareholders and stakeholders. Key activities included ongoing resource modelling by a third-
party consultant to further enhance and update the resource model; metallurgical test work with a pilot
plant in Ontario, Canada to confirm proposed optimizations to the flowsheet, which is expected to be
completed in 2024; updating of the groundwater and surface water models by incorporating recent
Donlin Gold field data from geosciences and hydrology, while continually collecting data to update
geochemical characteristics for closure planning; and further progression of regional support
infrastructure planning to narrow the scope of work and advance regional energy partnership
opportunities.
In addition, significant outreach endeavors were conducted in Alaska, particularly in the Y-K region, as well
as in Washington, D.C. These efforts aimed to support community engagement and permitting initiatives
to reinforce the project’s social license. We deeply appreciate the diligent and highly effective
contributions made by the Donlin Gold team, our partners, and broader stakeholders in that regard.
Since NOVAGOLD’s restructuring in 2012, our primary objective has been crystal clear: namely, to propel
the development of Donlin Gold, our prized asset in Alaska, to its fullest potential. With unyielding
determination, we have remained fully committed to the pursuit of this mission. The next logical and
critical step is now to update the feasibility study, with the aim of positioning Donlin Gold favorably for a
construction decision. Our dedication to advancing this flagship project underscores our unwavering
loyalty to our stakeholders and long-term shareholders, ensuring that their trust and investment are met
with tangible progress and value creation.
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Fostering Relationships with Local Communities Bolstered by Alaska Native
Corporation Partnerships and Government Backing
Supported by decades of consistent community outreach with our partners in the project’s region,
NOVAGOLD is committed to meaningful engagement throughout Alaska. The project, situated on private
land designated by law for mining activities under the Alaska Native Claims Settlement Act of 1971
(ANCSA), enjoys strong Native Corporation participation and ownership, which facilitates comprehensive
local stakeholder outreach as well as government engagement efforts in both Alaska and Washington, D.C.
During the second quarter, an additional Shared Values Statement was finalized with a Y-K region
community by Donlin Gold, increasing the total to 17. This achievement emphasizes our long-standing
dedication to sustained engagement with local communities. These documents formalize our current
engagement with key local communities, builds upon established long-term relationships, and addresses
tangible issues such as water, sewer, and solid waste projects; the ice road linking remote villages in the Y -K
region; studies on salmon and other aquatic life; and initiatives including suicide prevention advocacy and
public safety.
Donlin Gold, Calista, and TKC also conducted their third SCAC meeting, which took place in Aniak. This
committee reflects the ongoing commitment to establishing a structured process for communication,
dialogue, problem-solving, and gathering input from the broader community on subsistence matters. In
addition, together with Calista, Donlin Gold participated in a three-day ANVCA conference in Anchorage.
The Company’s presentation focused on revenue sharing among Native Corporations in Alaska and
addressed inquiries regarding statewide funding and rural opportunities.
Moreover, Donlin Gold traveled with the Crooked Creek Traditional Council to Washington, D.C., voicing
their support of the Donlin Gold project directly to the U.S. Department of Justice and Alaska
Congressional Delegation. In April, U.S. Senators Lisa Murkowski and Dan Sullivan, and U.S. Representative
Mary Peltola, submitted a joint amicus brief in Federal Court referring to Donlin Gold as one of the State’s
“most important and necessary economic development projects” in “one of the most impoverished
regions in Alaska”. These efforts, combined with the bipartisan outreach campaign and support from the
U.S. Department of Justice, along with the receipt of the Federal Record of Decision and 404 permit that
was issued by the U.S. Army Corps of Engineers and Bureau of Land Management in 2018, help further
solidify the importance of engagement and preparedness throughout the rigorous permitting process.
Devoted Support to Environmental and Social Initiatives in the Y-K Region
NOVAGOLD prioritizes community and social responsibility, ensuring shared values are upheld at both the
Donlin Gold project site and within the Y-K communities. Through initiatives focused on education,
community wellness, cultural preservation, and environmental stewardship, Donlin Gold supports a broad
range of activities, grants, and projects.
From an environmental standpoint, the conditions and management of salmon fisheries in the Kuskokwim
and Yukon River watersheds have been monitored and assessed since 2023. Our focus with local tribes
centered on identifying specific project opportunities to enhance salmon population health. This involved
collaborating closely with our Alaska Native Corporation partners to plan and initiate a juvenile salmon
monitoring project in the George River, a major tributary of the Kuskokwim River.
Donlin Gold proudly continues to support the annual “Clean-Up Green-Up” program, aimed at collecting
and properly disposing of winter trash from the tundra, roads, public areas, and beaches in the Y-K region.
This initiative assists 47 communities throughout the region. Donlin Gold's Community Development
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Coordinator, Rebecca Wilmarth, and Interim General Manager, Enric Fernandez, were honored to witness
the Iditarod Sled Dog Race finish and personally extend their congratulations to Donlin Gold employee,
Pete Kaiser, on obtaining his ninth top 10 finish in the race.
NOVAGOLD is dedicated to advancing educational opportunities in Alaska, actively promoting learning
through collaborative efforts and serving as a key component of Donlin Gold’s broader community
engagement initiatives. In March, Donlin Gold continued its collaboration with the ASAA, participating in
their March Madness Alaska basketball tournament — one of the State’s largest high school
championship events. Donlin Gold also sponsored the Lower Kuskokwim School District’s annual college
and career fair. Pete Kaiser, who is actively involved in community youth engagement and suicide
prevention advocacy, served as the event’s keynote speaker. Furthermore, Donlin Gold provided financial
assistance to Carry the Cure’s 15th annual Iditarod outreach suicide prevention event in March. This
gathering, held in local Y-K villages including Tununak, Toksook Bay, Nightmute, and Kasigluk,
underscores Donlin Gold's commitment to addressing the high suicide rates prevailing among teens in
Western Alaska by providing crucial messaging and support.
Sustained Collaboration to Uphold Active Permits and Secure Remaining State
Permits
Donlin Gold works closely with Calista and TKC to support Federal and State agencies in defending the
project’s permits from appeals. All Donlin Gold permit appeals have been unsuccessful to date,
highlighting the importance of thorough permitting processes. Permitting in the United States and Alaska
constitutes a rigorous endeavor, requiring years of dedicated efforts to ensure diligence, transparency,
and inclusivity in engaging all stakeholders, including those from the Y-K region.
At this time, work on the Dam Safety Certification continues to progress. Donlin Gold, Calista and TKC met
with the Independent Technical Review Board in May to discuss the preliminary design packages, which
were submitted to the ADNR on June 17, 2024.
In State litigation, after unsuccessful appeals to the ADNR Commissioner and Alaska Superior Court
regarding Donlin Gold’s water rights permits, Earthjustice submitted their opening brief to the Alaska
Supreme Court in January. The State of Alaska, Calista, and Donlin Gold filed their response briefs in the
second quarter.
Earthjustice filed its opening brief in its appeal of the Alaska Department of Environmental Conservation
(ADEC) Commissioner’s decision affirming the 401 Water Quality Certification with the Alaska Superior
Court in January, while the State of Alaska, Calista, and Donlin Gold filed their briefs in April. Briefing is
now complete and oral argument has been scheduled for August 30, 2024.
In the Federal litigation challenging the Donlin Gold Joint Record of Decision and 404 permit, Earthjustice
filed their opening brief in February and the U.S. Department of Justice, the State of Alaska, Calista, and
Donlin Gold filed their response briefs in the second quarter. Oral arguments were held on June 24, 2024.
A decision is anticipated by early 2025.
With a comprehensive understanding of the project’s permitting and regulatory procedures, Donlin Gold,
alongside Calista and TKC, remains committed to supporting Federal and State agencies in defending the
permits and securing the remaining state-level permits and certificates crucial for the project’s
advancement.
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Unyielding Dedication to Maximizing the Value of the Donlin Gold Project for All
Stakeholders and Shareholders
With resolute confidence, NOVAGOLD views the Donlin Gold project as a prime investment opportunity in
the gold market, particularly given the scarcity of good quality assets in safe jurisdictions. Located in Alaska,
a secure and proven mining destination and the second largest gold-producing state in the United States2,
the project holds unparalleled potential, compounded by our sustained commitment to guiding this
remarkable asset through its progression up the value chain in a responsible manner. Donlin Gold stands
out as one of the top development assets in the 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) 3.
Additionally, exploration opportunities extend beyond the current resource areas which cover only a
fraction of the project’s extensive land package. With a truly exceptional profile as a low-cost, open-pit,
million-ounce producer for decades, Donlin Gold also enjoys outstanding exploration upside. Testament to
the rigor of our strategy, the Company consistently elevated Donlin Gold's value without requiring
additional equity issuances since 2012, with treasury standing at $113 million as of May 31, 2024.
Appreciative of our shareholders’ staunch support and valuable guidance, we remain committed to
enhancing shareholder and stakeholder value responsibly, acknowledging their crucial presence and long -
term interests. Their decision to invest in our company and their continued solidarity and engagement are
deeply valued. As custodians of the Company, we are laser-focused on executing our strategy and
enhancing the value of the Donlin Gold project in a safe and responsible manner to yield substantial
progress and value creation.
In closing, on behalf of the entire NOVAGOLD team, I extend our heartfelt gratitude to our esteemed
colleague David Ottewell for his many years of dedicated service and wish him well on his upcoming
retirement. To our valued partners at Donlin Gold, Calista, and TKC, we express our profound appreciation
for their collaboration and active participation. And last but not least, I wish to recognize and personally
commend the unwavering determination, guidance, and support of our respected Board of Directors.
Sincerely,
Gregory A. Lang
President & CEO
Financial Results
in thousands of U.S. dollars, except for per share amounts
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.
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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.
In the second quarter and the first six months of 2024, net loss decreased by $949 and $1,290,
respectively, from the comparable prior year periods. The decreases were primarily due to lower field
expenses at Donlin Gold, increased interest income on cash and term deposits, and increases in the fair
value of marketable securities, partially offset by higher general and administrative costs and an increase
in interest expense on the promissory note. Donlin Gold expenses were lower with reduced site activity in
2024, compared to fieldwork and geotechnical drilling for the Alaska Dam Safety certificates and
hydrological drilling to support mine planning and design in 2023. General and administrative expenses
increased primarily due to higher employee compensation and professional fees. Share-based
compensation, salaries and benefits increased due to promotions and hiring of additional staff.
Professional fees increased due to consulting fees primarily related to our evaluation of options to
advance the Donlin Gold project. Income tax expense is a result of passive income taxable in Canada on a
portion of interest income earned by U.S. subsidiaries, and for withholding taxes on the sale of the San
Roque project in Argentina.
Liquidity and Capital Resources
In the second quarter and first six months of 2024, cash equivalents increased by $15 ,065 and $6,819,
respectively, primarily due to $20,000 in net proceeds from term deposits and higher interest income,
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partially offset by Donlin Gold funding and corporate general and administrative costs. The increase in cash
used in operating activities in the second quarter and first six months of 2024 from the comparable prior
year periods was primarily due to increased corporate general and administrative costs. Funding
requirements for Donlin Gold were substantially lower in the second quarter and first six months of 2024
than in the comparable prior year periods.
2024 Outlook
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 ob jectives,
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
NOVAGOLD’s quarterly reporting schedule for the remainder of 2024 will be as follows:
▶ 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.
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About NOVAGOLD
NOVAGOLD is a well-financed precious metals company, solely focused on the responsible and
sustainable development of its flagship Donlin Gold project in Alaska, one of the safest mining
jurisdictions in the world4. The Donlin Gold project, in equal partnership with Barrick, is positioned to be
one of the world’s largest gold mines, with approximately 39 million ounces of gold in the Measured and
Indicated Mineral Resource (541 million tonnes at an average grade of approximately 2.24 grams per
tonne, on a 100% basis) 5 categories, inclusive of Proven and Probable Mineral Reserves. According to the
2021 Technical Report and the S-K 1300 Technical Report Summary (both as defined in the footnote
below) Donlin Gold is expected to produce an average of approximately one million ounces of gold over a
27-year mine life on a 100% basis. There’s substantial exploration potential beyond the designed footprint
of the Donlin Gold open pit, which currently covers three kilometers of an approximately eight-kilometer-
long gold-bearing trend. Current activities at the Donlin Gold project focus on state permitting,
engineering studies, community engagement, and workforce development in preparation for the eventual
construction and operation of this project. With a robust balance sheet, NOVAGOLD is well positioned to
finance its share of current activities.
NOVAGOLD Contacts:
Mélanie Hennessey
Vice President, Corporate Communications
604-669-6227 or 1-866-669-6227
Cautionary Note Regarding Forward-Looking Statements
This media release includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking
statements”) within the meaning of applicable securities legislation, including the United States Private Securities Litigation Reform Act
of 1995. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”,
“intends”, “estimates”, “potential”, “possible”, and similar expressions, or statements that events, conditions, or results “will”, “may”,
“could”, “would” or “should” occur or be achieved. Forward-looking statements are necessarily based on several opinions, estimates and
assumptions that management of NOVAGOLD considered appropriate and reasonable as of the date such statements are made, are
subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, activity,
performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. All
statements, other than statements of historical fact, included herein are forward-looking statements. These forward-looking statements
include statements regarding the anticipated timing of certain judicial and/or administrative decisions; the 2024 outlook; the timing
and potential for commencing a new feasibility study on the Donlin Gold project; our goals and expenditures for 2024; ongoing support
provided to key stakeholders including Native Corporation partners; Donlin Gold’s continued support for the state and federal
permitting process; the potential development and construction of the Donlin Gold project; the sufficiency of funds to continue to
advance development of Donlin Gold, including to a construction decision; perceived merit of properties; mineral reserve and mineral
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.