NovaGold Resources (NG) Q1 2025 earnings summary

Executive summary

• Donlin Gold is a high-grade, large-scale project in Alaska with nearly 40 million ounces of gold at 2.24–2.25 g/t, projected to produce 1.1 million ounces annually over a 27-year mine life, and is advancing with strong partnerships and ESG commitments.

• Federal permits are secured, state permits are nearly complete, and the project is progressing through a rigorous regulatory process, with ongoing litigation being actively managed.

• Management emphasizes environmental stewardship, safety (no lost time accidents in over a decade), and responsible governance, with zero significant incidents or permit violations.

• Community engagement and support for local initiatives in Alaska and the Yukon-Kuskokwim region remain a priority, with strong support from Alaska Native Corporations.

• The project is owned 50/50 with Barrick and is positioned as a top-tier North American gold asset with robust exploration upside.

Financial highlights

• Q1 2025 net loss was $9.1 million, or ($0.03) per share, reflecting development-stage expenditures in line with budget, and a year-over-year decrease of $1.2 million.

• Cash and term deposits at quarter-end were $93 million, down $8.2–$8.3 million from the previous year, with total assets of $102 million as of February 28, 2025.

• Q1 2025 cash expenditures included $3.6 million for Donlin Gold and $3.8 million for G&A costs, with proceeds from sale of marketable securities contributing $1 million.

• 2024 actual expenditures totaled $30.1 million, below the $31.2 million budget.

• 2025 Donlin Gold budget is $43 million (100% basis), with $37.5 million total planned expenditures.

Outlook and guidance

• 2025 activities include updated mine planning, geotechnical engineering, closure planning, advancing Dam Safety Certificate applications, and a fully bankable Feasibility Study.

• Donlin Gold expenditures are expected to ramp up in Q2 and Q3 as field activities accelerate.

• State permitting and litigation decisions are anticipated in 2025, with Dam Safety Certification potentially issued in 2026/2027.

• Sufficient treasury to fund activities for the coming years, with no immediate need for additional funding.

• Key objectives include advancing Donlin Gold toward a feasibility study, maintaining permits, and strong community engagement.