NovaGold Resources (NG) Q1 2025 earnings summary

Executive summary

• Donlin Gold is positioned as a high-grade, long-life North American gold asset with a resource base of 39–40 million ounces at 2.24–2.25 g/t, projected to produce over 1–1.1 million ounces annually for decades.

• The project is located in Alaska, a top mining jurisdiction, with strong partnerships with Alaska Native Corporations and robust ESG and community engagement.

• Permitting is largely complete, with key federal permits secured and state permitting progressing; ongoing litigation is being actively managed.

• Drilling commenced in March 2025 with a 15,000-meter program to inform mine planning and feasibility studies.

• Strong institutional shareholder support, with over 70% of shares held by the top 10 institutions.

Financial highlights

• Q1 2025 net loss was $9.1 million, or ($0.03) per share, down $1.2 million year-over-year, mainly due to lower stock-based compensation and Donlin Gold expenditures.

• Cash and term deposits totaled $93 million as of February 28, 2025, down $8.2–$8.3 million from the prior year, reflecting expenditures and proceeds from marketable securities.

• Q1 2025 cash expenditures included $3.6 million for Donlin Gold and $3.8 million for G&A costs.

• Proceeds from the sale of marketable securities contributed $1 million in the quarter.

• Total assets as of February 28, 2025, were $102 million.

Outlook and guidance

• FY2025 budgeted cash expenditures are $37.5 million: $21.5 million for Donlin Gold and $16 million for corporate G&A.

• The Donlin Gold project budget for the year is $43 million (100% basis), covering drilling, geotechnical work, project planning, and permitting support.

• Activities in 2025 include updated mine planning, geotechnical engineering, closure planning, and advancing Dam Safety Certificate applications.

• Priority is to commence a fully bankable Feasibility Study; estimated cost is $80–$100 million over two years, pending completion of current drilling.

• The company is well positioned to fund activities for the coming years with its current treasury.