NovaGold Resources (NG) Q3 2024 earnings summary

Executive summary

• Donlin Gold is a Tier 1 asset with 39 million ounces of gold at an average grade of 2.25 g/t, located in Alaska, a top-ranked mining jurisdiction, and supported by strong partnerships with local landowners and stakeholders.

• The project advanced toward an updated feasibility study in Q3 2024, achieving key technical and permitting milestones and maintaining robust community engagement.

• All federal and most state permits are secured, with only the dam safety certification remaining; community engagement and sustainability initiatives continue.

• NOVAGOLD maintains a strong treasury and institutional shareholder support, with 68% of shares held by the top 10 investors.

• Peter Adamek was appointed CFO, bringing over 20 years of financial leadership experience.

Financial highlights

• Q3 2024 net loss was $10.7 million, improved from $11.1 million in Q3 2023; nine-month net loss was $34.8 million, down from $36.4 million year-over-year.

• Cash and term deposits at August 31, 2024, totaled $105.6 million, down from $130.1 million at the end of Q3 2023.

• Year-to-date 2024 spending: $13.7 million on corporate G&A and $10.2 million on Donlin Gold project expenditures.

• General and administrative expenses increased due to higher professional fees and employee compensation.

• Cash used in operations rose due to increased corporate costs, partially offset by lower Donlin Gold funding.

Outlook and guidance

• Fiscal 2024 cash expenditures expected to be $31.2 million, including $14.25 million for Donlin Gold and $16.95 million for corporate costs.

• Guidance for 2025 activities and CapEx will be provided late this year or early next year, with an anticipated increase in burn rate due to higher activity.

• Focus remains on advancing permitting, completing metallurgical test work, and progressing toward a full bankable feasibility study.

• Sufficient cash on hand to fund ongoing and increased project activities in 2025.

• Expect to complete the dam safety certification process by year-end, with state feedback anticipated in 2025.