NovaGold Resources (NG) Q4 2023 earnings summary

Executive summary

• Donlin Gold advanced 2023 fieldwork, engineering studies, permitting support and community engagement; it remains undeveloped, with no construction decision made.

• Cash and term deposits were $125.7M at November 30, 2023; FY2023 net loss was $46.8M, down from $53.3M in FY2022.

• Donlin Gold LLC approved a $28.5M 2024 budget on a 100% basis; owners continued discussions on the next major work program.

Financial highlights

• FY2023 operating loss was $40.3M versus $48.3M in FY2022; net loss was $46.803M, down $6.540M year over year.

• FY2023 G&A was $21.783M versus $20.109M; Donlin Gold loss share was $18.529M versus $28.163M.

• Q4 2023 net loss was $10.421M versus $12.255M in Q4 2022, mainly reflecting lower Donlin Gold activity and higher interest income, partly offset by increased note interest.

• FY2023 promissory-note interest expense was $13.1M versus $8.0M; interest and dividend income was $5.8M versus $1.6M.

Outlook and guidance

• FY2024 forecast expenditures total $31.2M: $14.25M for Donlin Gold and $16.95M for corporate G&A.

• The $28.5M 2024 Donlin Gold budget covers mine planning, pilot-plant metallurgical tests, resource modelling and infrastructure support.

• Owners had not agreed on an updated feasibility study or further drilling; additional work remained under discussion after the December 2023 board meeting.

• Preliminary dam-safety design packages were targeted for Alaska DNR submission in H1 2024; certificate issuance was anticipated in 2026.