NovaGold Resources Inc. (NYSE:NG) Q2 2021 Earnings Conference Call June 30, 2021 11:00 AM ET Company Participants Melanie Hennessey - Vice President, Corporate Communications Dr. Thomas Kaplan - Chairman David Ottewell - Vice President and CFO Richard Williams - Project Manager Conference Call Participants Lucas Pipes - B. Riley Securities Trevor Turnbull - Scotiabank John Tumazos - John Tumazos Very Independent Research Operator Thank you for standing by. This is the conference operator. Welcome to the Nov ...

Donlin Gold Project Highlights - Donlin Gold is a Tier-One asset in a Tier-One jurisdiction, boasting 39 million gold ounces in measured and indicated mineral resources [15, 16, 81, 82] - The project's gold grade is 2.24 g/t, more than double the world average [16, 61, 62, 63, 64, 65, 66, 82] - NOVAGOLD has solid cash and term deposits of $108 million and notes receivable of $100 million [16, 58, 82] - The 2021 drill program is progressing as planned, with 28 holes drilled to date, representing over 40% of the planned drilling [31] Sustainability and Community Engagement - 70% of Donlin Gold direct hires for the 2021 drill program are Alaska Natives [21] - NOVAGOLD and Donlin Gold continue to follow strict health protocols to ensure the safety and well-being of its workforce, their families, and local communities for the 2021 field season [26] - Shared Value Statements have been finalized with seven villages from the Y-K region, including educational, environmental, and social initiatives [44] Financial Performance - NOVAGOLD's operating loss for the three months ended May 31, 2021, was $92 million [53] - The company's cash and term deposits as of May 31, 2021, were $1076 million [55] Technical Report Update - An update to the content in the 2011 Technical Report determined that updating the report using 2020 costs and new gold price guidance resulted in no material change to the mineral resources or mineral reserves [41]

[FORM 10-Q](index=1&type=section&id=FORM%2010-Q) [Form 10-Q Filing Information](index=1&type=section&id=Form%2010-Q%20Filing%20Information) This Quarterly Report on Form 10-Q for NOVAGOLD RESOURCES INC. for the period ended May 31, 2021, confirms compliance with filing requirements as a non-accelerated filer - Filing Type: Quarterly Report on Form 10-Q for the period ended May 31, 2021[2](index=2&type=chunk) - Registrant: NOVAGOLD RESOURCES INC[2](index=2&type=chunk) - **331,651,314** common shares outstanding as of June 22, 2021[4](index=4&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) [Forward-Looking Statements Disclaimer](index=4&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section outlines forward-looking statements based on management's assumptions, subject to known and unknown risks, cautioning investors against undue reliance - Forward-looking statements cover future operations, exploration, financial resources, and the Donlin Gold project, including cost, production, and timeline estimates[7](index=7&type=chunk) - Key risks include achieving production, estimated costs and returns, commodity price fluctuations, market events, COVID-19, third-party dependence, permitting delays, and NGO opposition[9](index=9&type=chunk)[10](index=10&type=chunk) - The company does not assume any obligation to update forward-looking statements unless legally required[12](index=12&type=chunk) [PART I - FINANCIAL INFORMATION](index=7&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents NOVAGOLD RESOURCES INC.'s unaudited condensed consolidated interim financial statements, including balance sheets, statements of loss, cash flows, and equity, with accompanying notes - Financial statements are **unaudited** and prepared in accordance with US GAAP[25](index=25&type=chunk) - The company's functional currency is **CAD for Canadian operations** and **USD for U.S. operations**[26](index=26&type=chunk) [Condensed Consolidated Interim Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Balance%20Sheets) Condensed Consolidated Interim Balance Sheets (thousands) | Metric | May 31, 2021 (thousands) | Nov 30, 2020 (thousands) | Change (thousands) | | :------------------------- | :----------------------- | :----------------------- | :----------------- | | Total Assets | $213,296 | $224,441 | $(11,145) | | Cash and cash equivalents | $51,788 | $60,906 | $(9,118) | | Term deposits | $55,799 | $61,000 | $(5,201) | | Total Liabilities | $115,168 | $113,714 | $1,454 | | Total Equity | $98,128 | $110,727 | $(12,599) | [Condensed Consolidated Interim Statements of Loss and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (thousands) | Metric | Three months ended May 31, 2021 (thousands) | Three months ended May 31, 2020 (thousands) | Six months ended May 31, 2021 (thousands) | Six months ended May 31, 2020 (thousands) | | :---------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net Loss | $(10,521) | $(7,233) | $(18,477) | $(13,828) | | Net Loss per Common Share (Basic & Diluted) | $(0.03) | $(0.02) | $(0.06) | $(0.04) | | General and administrative | $4,992 | $4,387 | $10,321 | $9,101 | | Equity loss – Donlin Gold | $4,198 | $3,700 | $6,166 | $5,268 | [Condensed Consolidated Interim Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Condensed Consolidated Interim Statements of Cash Flows (thousands) | Metric | Six months ended May 31, 2021 (thousands) | Six months ended May 31, 2020 (thousands) | | :--------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net cash used in operating activities | $(6,262) | $(5,331) | | Net cash provided from (used in) investing activities | $(2,923) | $(6,890) | | Cash and cash equivalents at end of period | $51,788 | $53,329 | [Condensed Consolidated Interim Statements of Equity](index=10&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Equity) Condensed Consolidated Interim Statements of Equity (thousands) | Metric | November 30, 2020 (thousands) | May 31, 2021 (thousands) | | :----------- | :---------------------------- | :----------------------- | | Total Equity | $110,727 | $98,128 | - **Net Loss** for the six months ended May 31, 2021, was **$(7,956) thousand**[22](index=22&type=chunk) - **Share-based compensation** for the six months ended May 31, 2021, was **$2,042 thousand**[22](index=22&type=chunk) [Notes to Condensed Consolidated Interim Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION](index=11&type=section&id=NOTE%201%20%E2%80%93%20NATURE%20OF%20OPERATIONS%20AND%20BASIS%20OF%20PRESENTATION) This note details the company's primary business of gold mineral property exploration and development, highlighting its 50% interest in the Donlin Gold project and lack of realized revenues - Principal business involves **exploration and development of gold mineral properties**[24](index=24&type=chunk) - Main asset is a **50% interest in the Donlin Gold project**, a joint venture with Barrick Gold Corporation[24](index=24&type=chunk) - No realized revenues from the principal business purpose[24](index=24&type=chunk) [NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=11&type=section&id=NOTE%202%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the adoption of ASU No. 2018-13 (Fair Value Disclosure Requirements) on December 1, 2020, noting no impact on note disclosures - Adoption of **ASU No. 2018-13** (Fair Value Disclosure Requirements) on December 1, 2020[27](index=27&type=chunk) - No impact on note disclosures resulted from the adoption[27](index=27&type=chunk) [NOTE 3 – SEGMENTED INFORMATION](index=11&type=section&id=NOTE%203%20%E2%80%93%20SEGMENTED%20INFORMATION) This note clarifies that the company operates as a single segment, with a primary focus on the performance of its investment in the Donlin Gold project - The company operates as a **single segment**[28](index=28&type=chunk) - Focus is on the performance of the **Donlin Gold project investment**[28](index=28&type=chunk) [NOTE 4 – NOTES RECEIVABLE](index=11&type=section&id=NOTE%204%20%E2%80%93%20NOTES%20RECEIVABLE) This note details the carrying value of notes receivable from Newmont, including a $75 million note due July 2021 and a $25 million note due July 2023, with a contingent note not valued - Carrying value of notes receivable from Newmont was **$97,724 thousand** as of May 31, 2021[29](index=29&type=chunk) - Includes a **$75,000 thousand note due by July 27, 2021**, and a **$25,000 thousand note due by July 27, 2023**[29](index=29&type=chunk) - A contingent **$75,000 thousand note** is not valued due to the improbability of Galore Creek project construction approval[29](index=29&type=chunk) [NOTE 5 – INVESTMENT IN DONLIN GOLD](index=11&type=section&id=NOTE%205%20%E2%80%93%20INVESTMENT%20IN%20DONLIN%20GOLD) This note describes the company's 50% joint venture interest in Donlin Gold LLC with Barrick Gold Corporation, where significant decisions require majority board approval - **50% interest** in Donlin Gold LLC, a joint venture with Barrick Gold Corporation[30](index=30&type=chunk) - Significant decisions require **majority board approval**[31](index=31&type=chunk) Investment in Donlin Gold (thousands) | Metric | May 31, 2021 (thousands) | May 31, 2020 (thousands) | | :-------------------------------- | :----------------------- | :----------------------- | | Investment balance – end of period | $4,572 | $3,462 | | Share of losses (six months) | $(6,166) | $(5,268) | | Funding (six months) | $8,124 | $6,890 | [NOTE 6 – OTHER ASSETS](index=13&type=section&id=NOTE%206%20%E2%80%93%20OTHER%20ASSETS) This note provides a breakdown of other assets, including current assets and marketable equity securities, for May 31, 2021, and November 30, 2020 Other Assets (thousands) | Metric | May 31, 2021 (thousands) | Nov 30, 2020 (thousands) | | :------------------------ | :----------------------- | :----------------------- | | Other current assets | $854 | $1,869 | | Marketable equity securities | $2,010 | $1,402 | [NOTE 7 – PROMISSORY NOTE](index=13&type=section&id=NOTE%207%20%E2%80%93%20PROMISSORY%20NOTE) This note details the promissory note payable to Barrick, totaling $112,715 thousand as of May 31, 2021, comprising principal and accrued interest at U.S. prime plus 2% - Promissory note payable to Barrick totaled **$112,715 thousand** as of May 31, 2021[35](index=35&type=chunk) - Composed of **$51,576 thousand principal** and **$61,139 thousand accrued interest**[35](index=35&type=chunk) - Interest rate is **U.S. prime plus 2%**[35](index=35&type=chunk) [NOTE 8 – FAIR VALUE ACCOUNTING](index=14&type=section&id=NOTE%208%20%E2%80%93%20FAIR%20VALUE%20ACCOUNTING) This note explains that marketable equity securities are classified as Level 1 in the fair value hierarchy, with their fair value increasing to $2,010 thousand at May 31, 2021 - Marketable equity securities are classified as **Level 1** in the fair value hierarchy[36](index=36&type=chunk) - Fair value of marketable equity securities was **$2,010 thousand** at May 31, 2021, up from $1,402 thousand at November 30, 2020[36](index=36&type=chunk) [NOTE 9 – GENERAL AND ADMINISTRATIVE EXPENSES](index=14&type=section&id=NOTE%209%20%E2%80%93%20GENERAL%20AND%20ADMINISTRATIVE%20EXPENSES) This note provides a detailed breakdown of general and administrative expenses, including share-based compensation and professional fees, for the three and six months ended May 31, 2021 and 2020 General and Administrative Expenses (thousands) | Expense Category | Three months ended May 31, 2021 (thousands) | Three months ended May 31, 2020 (thousands) | Six months ended May 31, 2021 (thousands) | Six months ended May 31, 2020 (thousands) | | :----------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Total G&A | $4,992 | $4,387 | $10,321 | $9,101 | | Share-based compensation | $2,095 | $1,715 | $4,137 | $3,476 | | Professional fees | $388 | $180 | $1,007 | $582 | [NOTE 10 – OTHER INCOME (EXPENSE), NET](index=14&type=section&id=NOTE%2010%20%E2%80%93%20OTHER%20INCOME%20(EXPENSE)%2C%20NET) This note details the components of other income (expense), net, including foreign exchange gains or losses and interest income, for the three months ended May 31, 2021 and 2020 Other Income (Expense), Net (thousands) | Metric | Three months ended May 31, 2021 (thousands) | Three months ended May 31, 2020 (thousands) | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | | Other income (expense), net | $(705) | $1,694 | | Foreign exchange gain (loss) | $(1,043) | $882 | | Interest income | $80 | $514 | [NOTE 11 – SHARE-BASED COMPENSATION](index=14&type=section&id=NOTE%2011%20%E2%80%93%20SHARE-BASED%20COMPENSATION) This note details share-based compensation expenses for stock options, performance share units, and deferred share units, along with unrecognized compensation costs, for the six months ended May 31, 2021 and 2020 Share-Based Compensation (thousands) | Compensation Type | Six months ended May 31, 2021 (thousands) | Six months ended May 31, 2020 (thousands) | | :------------------ | :---------------------------------------- | :---------------------------------------- | | Stock options | $2,400 | $2,101 | | Performance share unit plan | $1,625 | $1,277 | | Deferred share unit plan | $112 | $98 | | Total | $4,137 | $3,476 | - Unrecognized compensation cost for stock options was **$5,031 thousand** as of May 31, 2021, to be recognized over approximately 2.5 years[40](index=40&type=chunk) - Unrecognized compensation cost for PSU awards was **$5,253 thousand** as of May 31, 2021, to be recognized over approximately 2.5 years[41](index=41&type=chunk) [NOTE 12 – NET CHANGE IN OPERATING ASSETS AND LIABILITIES](index=16&type=section&id=NOTE%2012%20%E2%80%93%20NET%20CHANGE%20IN%20OPERATING%20ASSETS%20AND%20LIABILITIES) This note presents the net change in operating assets and liabilities for the six months ended May 31, 2021 and 2020 Net Change in Operating Assets and Liabilities (thousands) | Metric | Six months ended May 31, 2021 (thousands) | Six months ended May 31, 2020 (thousands) | | :--------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net change in operating assets and liabilities | $(340) | $(565) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis covers financial condition and operational performance for the three and six months ended May 31, 2021, focusing on project milestones, Donlin Gold, liquidity, and financial results - Discussion covers financial and operating performance for **Q2 and H1 2021 versus 2020**[44](index=44&type=chunk) [Overview](index=17&type=section&id=Overview) This overview details the company's operational focus on achieving gold mineral property milestones, including technical, environmental, economic, legal, permitting, and financing objectives - Operations focus on project milestones for gold mineral properties, encompassing technical, environmental, economic, legal, permitting, feasibility, engineering, and financing objectives[45](index=45&type=chunk) - **2021 goals** include advancing the Donlin Gold project, maintaining stakeholder support, promoting safety and sustainability, enhancing reputation, and effective treasury management[51](index=51&type=chunk) [Second quarter highlights](index=17&type=section&id=Second%20quarter%20highlights) This section highlights key developments in the second quarter, including COVID-19 response, community engagement, permitting updates, and progress on the Donlin Gold project and its funding - **COVID-19 Response** included remote work, non-essential travel avoidance, hygiene practices, and Donlin Gold's continued relief support and mandatory employee testing[47](index=47&type=chunk)[48](index=48&type=chunk) - **Community Engagement** involved signing seven Friendship Agreements with Y-K region villages, with approximately **70% of Donlin Gold's direct drill program hires being Alaska Natives**[50](index=50&type=chunk)[51](index=51&type=chunk) - **Permitting updates** include the State's Clean Water Act Section 401 certification upheld but appealed, ADNR reconsidering the State Right-of-Way and lease for the natural gas pipeline, and ADNR's expected final decisions on water rights in 2021[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) - **Donlin Gold Project** is undergoing additional confirmation and extension drilling with four rigs, completing **28 of 64 planned holes** to inform updated mining schedules and business plans[58](index=58&type=chunk) - NOVAGOLD's share of **Donlin Gold Project funding** for H1 2021 was **$8.1 million**, with the total 2021 share expected to be **$18-$22 million**[59](index=59&type=chunk) [Outlook](index=19&type=section&id=Outlook) This outlook provides financial projections, including current cash and term deposits, expected receipt from a Newmont note, anticipated 2021 expenditures, and the need for additional capital for Donlin Gold construction - No current operating cash flows[62](index=62&type=chunk) Cash and Term Deposits (thousands) | Metric | As of May 31, 2021 (thousands) | | :------------------------ | :----------------------------- | | Cash and cash equivalents | $51,800 | | Term deposits | $55,800 | - Expected receipt of **$75 million** from Newmont note in July 2021[62](index=62&type=chunk) - Anticipated **2021 expenditures** are **$31-$35 million**, comprising $18-$22 million for Donlin Gold and $13 million for G&A[62](index=62&type=chunk) - Additional capital is required for Donlin Gold construction, with no assurance of successful financing[63](index=63&type=chunk) [Summary of Consolidated Financial Performance](index=19&type=section&id=Summary%20of%20Consolidated%20Financial%20Performance) This section summarizes the consolidated financial performance, presenting key metrics such as loss from operations and net loss for the three and six months ended May 31, 2021 and 2020 Summary of Consolidated Financial Performance (thousands) | Metric | Three months ended May 31, 2021 (thousands) | Three months ended May 31, 2020 (thousands) | Six months ended May 31, 2021 (thousands) | Six months ended May 31, 2020 (thousands) | | :---------------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Loss from operations | $(9,190) | $(8,087) | $(16,487) | $(14,369) | | Net loss | $(10,521) | $(7,233) | $(18,477) | $(13,828) | [Results of Operations](index=19&type=section&id=Results%20of%20Operations) This section analyzes the company's operational results, comparing performance for the second quarter and first six months of 2021 against the corresponding periods in 2020 [Second quarter 2021 compared to 2020](index=19&type=section&id=Second%20quarter%202021%20compared%20to%202020) This subsection compares the second quarter 2021 financial results to 2020, highlighting increases in loss from operations and net loss, driven by higher G&A, Donlin Gold costs, lower interest income, and foreign exchange movements - Loss from operations increased by **$1.1 million** to **$9.2 million**[65](index=65&type=chunk) - Net loss increased by **$3.3 million** to **$10.5 million** (**$0.03 per share**)[66](index=66&type=chunk) - Drivers include higher G&A (share-based compensation, legal costs), increased Donlin Gold costs, lower interest income, and foreign exchange movements[65](index=65&type=chunk)[66](index=66&type=chunk) [First six months 2021 compared to 2020](index=20&type=section&id=First%20six%20months%202021%20compared%20to%202020) This subsection compares the first six months of 2021 financial results to 2020, showing increases in loss from operations and net loss, primarily due to higher G&A, Donlin Gold expenses, lower interest income, and foreign exchange movements - Loss from operations increased by **$2.1 million** to **$16.5 million**[67](index=67&type=chunk) - Net loss increased by **$4.6 million** to **$18.5 million** (**$0.06 per share**)[68](index=68&type=chunk) - Drivers include higher G&A (**$1.2 million increase**), increased Donlin Gold expenses (**$0.9 million increase**), lower interest income, and foreign exchange movements[67](index=67&type=chunk)[68](index=68&type=chunk) [Liquidity, Capital Resources and Capital Requirements](index=20&type=section&id=Liquidity%2C%20Capital%20Resources%20and%20Capital%20Requirements) This section analyzes the company's liquidity, capital resources, and capital requirements, detailing changes in cash, term deposits, and funding for the Donlin Gold project - Cash, cash equivalents, and term deposits totaled **$107,587 thousand** as of May 31, 2021, a **$14,319 thousand decrease** from November 30, 2020[69](index=69&type=chunk) - **$6.3 million** cash used in operating activities for the first six months of 2021[69](index=69&type=chunk) - **$8.1 million** funding for Donlin Gold for the first six months of 2021[69](index=69&type=chunk) [Second quarter 2021 compared to 2020 (Liquidity)](index=20&type=section&id=Second%20quarter%202021%20compared%20to%202020%20(Liquidity)) This subsection compares liquidity for the second quarter of 2021 to 2020, noting changes in net cash used in operating and investing activities, Donlin Gold funding, and term deposits Liquidity (thousands) | Metric | Three months ended May 31, 2021 (thousands) | Three months ended May 31, 2020 (thousands) | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | | Net cash used in operating activities | $(1,976) | $(1,834) | | Net cash used in investing activities | $(9,977) | $(4,290) | - Donlin Gold funding increased by **$0.9 million**[71](index=71&type=chunk) - Term deposits increased by **$4.8 million**[71](index=71&type=chunk) [First six months 2021 compared to 2020 (Liquidity)](index=20&type=section&id=First%20six%20months%202021%20compared%20to%202020%20(Liquidity)) This subsection compares liquidity for the first six months of 2021 to 2020, detailing net cash used in operating, investing, and financing activities, along with changes in Donlin Gold funding and term deposits Liquidity (thousands) | Metric | Six months ended May 31, 2021 (thousands) | Six months ended May 31, 2020 (thousands) | | :--------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net cash used in operating activities | $(6,262) | $(5,331) | | Net cash used in investing activities | $(2,923) | $(6,890) | | Net cash used in financing activities | $(731) | $(1,652) | - Donlin Gold funding increased by **$1.2 million**[72](index=72&type=chunk) - Term deposits decreased by **$5.2 million**[72](index=72&type=chunk) [Outstanding share data](index=20&type=section&id=Outstanding%20share%20data) This section provides details on the company's outstanding share data as of June 22, 2021, including common shares, stock options, performance share units, and maximum shares issuable from convertible securities - **331,651,314 common shares outstanding** as of June 22, 2021[73](index=73&type=chunk) - Total **10,460,803 stock options outstanding**[73](index=73&type=chunk) - **1,583,100 Performance Share Units (PSUs) outstanding**[73](index=73&type=chunk) - Maximum **13,133,139 common shares issuable** from convertible securities[73](index=73&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's financial instruments face credit and interest rate risks, managed through high-grade deposits and Newmont's rating, with interest rate risk tied to Barrick's variable promissory note - Financial instruments are exposed to **credit and interest rate risks**[74](index=74&type=chunk) [Credit risk](index=21&type=section&id=Credit%20risk) This section details how credit risk is managed through term deposits in high investment-grade Canadian banks and notes receivable from investment-grade rated Newmont - Term deposits are held in **high investment-grade Canadian chartered banks**[75](index=75&type=chunk) - Notes receivable are from Newmont, a publicly traded company with **investment-grade credit ratings**, and are guaranteed by Newmont[75](index=75&type=chunk) [Interest rate risk](index=21&type=section&id=Interest%20rate%20risk) This section explains that the promissory note to Barrick carries a variable interest rate (U.S. prime plus 2%), with a 1% change impacting accrued interest by approximately $1.1 million annually - The promissory note to Barrick has a **variable interest rate** (U.S. prime plus 2%)[76](index=76&type=chunk) - A **1% change in the U.S. prime rate** impacts accrued interest by approximately **$1.1 million annually**[76](index=76&type=chunk) [Item 4. Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of May 31, 2021, with no material changes to internal control over financial reporting - Disclosure controls and procedures were deemed **effective** as of May 31, 2021[77](index=77&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[78](index=78&type=chunk) [PART II - OTHER INFORMATION](index=22&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=22&type=section&id=Item%201.%20Legal%20Proceedings) The company is unaware of any material current, pending, or threatened litigation beyond routine business matters - No awareness of material current, pending, or threatened litigation[80](index=80&type=chunk) [Item 1A. Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended November 30, 2020 - No material changes to risk factors from the Annual Report on Form 10-K[81](index=81&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=22&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds occurred during the reporting period - None [Item 3. Defaults Upon Senior Securities](index=22&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the reporting period - None [Item 4. Mine Safety Disclosures](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the company's operations - Not applicable [Item 5. Other Information.](index=22&type=section&id=Item%205.%20Other%20Information.) No other information is required for disclosure under this item - None [Item 6. Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate articles, CEO/CFO certifications, and XBRL interactive data files - Includes Amended and Restated Articles, CEO/CFO certifications (Rule 13a-14(a) and 18 U.S.C. Section 1350), and Inline XBRL data files[92](index=92&type=chunk) [SIGNATURES](index=23&type=section&id=SIGNATURES) [Signatures](index=23&type=section&id=Signatures) The report is signed by Gregory A. Lang, President and CEO, and David A. Ottewell, VP and CFO, on behalf of NOVAGOLD RESOURCES INC - Signed by President and CEO Gregory A. Lang and VP and CFO David A. Ottewell[90](index=90&type=chunk) [EXHIBIT INDEX](index=24&type=section&id=EXHIBIT%20INDEX) [Exhibit Index Details](index=24&type=section&id=Exhibit%20Index%20Details) This section provides a detailed list of all exhibits accompanying the Form 10-Q filing, including corporate governance documents, certifications, and XBRL data - Lists specific exhibits such as Amended and Restated Articles, CEO/CFO certifications, and various Inline XBRL files[92](index=92&type=chunk)

2021 First-Quarter Financial Results & Project Update TSX, NYSE American: NG | novagold.com | April 1, 2021 NOVAGOLD First-Quarter 2021 Webcast and Conference Call Agenda 2 Introduction Mélanie Hennessey (Vice President, Corporate Communications) First-Quarter Update Greg Lang (President & Chief Executive Officer) First-Quarter Financials David Ottewell (Vice President & Chief Financial Officer) Closing Remarks Greg Lang (President & Chief Executive Officer) Question & Answer Session Greg Lang (President & ...

NovaGold Resources Inc. (NYSE:NG) Q1 2021 Results Earnings Conference Call April 1, 2021 11:00 AM ET Company Participants Melanie Hennessey - Vice President, Corporate Communications Dr. Thomas Kaplan - Chairman Greg Lang - President and CEO David Ottewell - Vice President and CFO Conference Call Participants Lucas Pipes - B. Riley Securities John Tumazos - John Tumazos Very Independent Research Operator Thank you for standing by. This is the conference operator. Welcome to the NovaGold First Quarter 2021 F ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended February 28, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number: 001-31913 NOVAGOLD RESOURCES INC. (Exact Name of Registrant as Specified in Its Charter) British Columbia N/A (State or Other Jurisdiction ...

Financial Data and Key Metrics Changes - The company reported a net loss of $33.6 million in 2020, an increase of $5.8 million from the previous year, primarily due to the drill program at Donlin and higher general and administrative expenses [21] - Cash flows for the year amounted to $26.6 million, which was $8.1 million higher than the prior year, attributed to increased funding for Donlin and higher G&A spending [22] - The company ended the year with nearly $122 million in cash and term deposits, along with additional expected payments from Newmont totaling $100 million [23] Business Line Data and Key Metrics Changes - The Donlin Gold project is highlighted as a significant asset, with a focus on its exploration potential and the successful completion of the largest drill program in over 12 years [6][8] - The drill program resulted in higher grade thickness than previously modeled, providing encouragement for additional high-grade drill targets [9] Market Data and Key Metrics Changes - The company emphasized the importance of the Alaskan mining sector, noting that mining is becoming increasingly vital to state revenues and employment [4] - The exploration potential at Donlin Gold is described as extraordinary, with only 3 out of an 8-kilometer mineralized belt currently explored [26] Company Strategy and Development Direction - The strategic focus for the year includes safely operating drill rigs and collaborating with native corporation partners to ensure successful operations [6] - The company plans to update the feasibility study based on the latest drill results and continue drilling to confirm high-grade mineralization [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the gold market, citing a decline in global production and the need for new discoveries to meet demand [32][63] - The company believes that the Donlin Gold project is uniquely positioned in a premier mining jurisdiction, which enhances its attractiveness to investors [67] Other Important Information - The company has received key federal and state permits, laying a strong foundation for future development [13] - Community engagement efforts have been highlighted, including food donations and hazardous waste removal projects in collaboration with local partners [16][17] Q&A Session Summary Question: Comments on the silver and gold market trends - Management acknowledged the recent trading activity in silver ETFs and expressed anticipation for future developments in the gold market [74][75] Question: Wind energy potential at Donlin - Management indicated that while they have explored various energy sources, natural gas remains the most cost-effective option for power generation at the site, but they will revisit this in future feasibility studies [76] Question: Recent drill results and timeline for updates - Management reported satisfaction with recent drill results, noting higher grades than expected and plans for follow-up drilling to refine the resource model [84][86] Question: Broader market implications and economic outlook - Management discussed the current uncharted economic territory and its potential implications for gold and silver, emphasizing the importance of being prepared for market shifts [89][90]

2020 Year-End Financial Results & Project Update TSX, NYSE American: NG | novagold.com | January 28, 2021 NOVAGOLD Year-End 2020 Webcast and Conference Call Attendees Introduction Mélanie Hennessey (Vice President, Corporate Communications) Year-End Update Greg Lang (President & Chief Executive Officer) Year-End Financials and 2021 Budget David Ottewell (Vice President & Chief Financial Officer) Corporate Update & Gold Market Commentary Dr. Thomas Kaplan (Chairman) Closing Remarks Greg Lang (President & Chi ...

Project Overview - The Donlin Gold project is a joint venture between NOVAGOLD and Barrick Gold Corporation, focusing on advancing gold mining operations in Alaska [77]. - The Donlin Gold project is a 50% joint venture between the company and Barrick Gold, with a promissory note of approximately $109.8 million as of November 30, 2020, for prior expenditures [200]. - The Donlin Gold project currently has no known reserves as defined under SEC Industry Guide 7 [190]. - The Donlin Gold property hosts an estimated 33.8 million ounces of proven and probable gold reserves, averaging 2.09 grams per tonne [203]. - The project is without known reserves under SEC Industry Guide 7 [247]. Financial Performance and Projections - NOVAGOLD has no current revenue from mining operations, as none of its mineral properties are in production [111]. - The company has a history of net losses and expects to continue incurring losses until the Donlin Gold project commences commercial production and generates sufficient revenues [115]. - The total capital cost estimate for the Donlin Gold project is approximately $6.7 billion, which includes costs related to the natural gas pipeline [117]. - The previous initial capital cost estimate for the Donlin Gold project was $4.5 billion, excluding the natural gas pipeline costs [123]. - The project's estimated after-tax net present value (NPV) at a 5% discount rate is $547 million, with an internal rate of return (IRR) of 6.0% at a gold price of $1,200 per ounce [254]. - Total cash flow after-tax is projected to be $6,197 million, with a payback period of 9.2 years [256]. - Initial capital requirements for mining operations are estimated at $345 million, with total project costs reaching $6,679 million [260]. Exploration and Development Activities - In 2020, Donlin Gold LLC completed an 85-hole drilling program totaling approximately 23,400 meters, the largest campaign since 2008, aimed at validating geological models and testing high-grade zones [95]. - Approximately 1,965 exploration and development drill holes have been completed, totaling 439,181 meters from 1988 through 2020 [224]. - Proven mineral reserves are estimated at 573,000 ounces with a gold grade of 2.32 grams per tonne [244]. - Probable mineral reserves are estimated at 33,276,000 ounces with a gold grade of 2.08 grams per tonne [244]. - Mineralization remains open at depth under the current pit limits, indicating potential for resource expansion [236]. Regulatory and Compliance Issues - The company is subject to various national and local regulations governing mining and environmental standards, and believes it is in compliance with applicable laws [98]. - The company requires various permits for its operations, and delays or failures to obtain these permits could have a material adverse impact [139]. - The company is subject to new SEC mining rules for disclosing mineral resources and reserves starting from the fiscal year ending November 30, 2022 [149]. - Compliance with evolving environmental laws and regulations may require significant capital outlays and could cause material changes or delays in operations [171]. Market Conditions and Risks - The average gold price in 2020 was $1,770 per ounce, with a high of $2,067 and a low of $1,474, indicating significant price volatility [107]. - The market price of gold, which is volatile, significantly affects the company's financial condition and long-term viability [125]. - Competition for financing and technical expertise in the mineral resource sector is intense, with many competitors having greater resources [99]. - The company faces risks related to health epidemics, such as COVID-19, which could disrupt operations and adversely affect financial conditions [131]. - Climate change could impact the feasibility of mining projects and increase operating costs due to potential regulations on energy consumption and emissions [184]. Operational Challenges - Significant infrastructure challenges exist for the Donlin Gold project, including a required 316-mile natural gas pipeline and a 30-mile access road [151]. - Exploration and construction activities may be delayed by inclement weather, impacting the Donlin Gold project's operational timeline [166]. - The company is exposed to various operational risks, including environmental hazards and regulatory compliance, which could lead to significant expenditures [170]. - Ongoing reclamation requirements may impose additional financial burdens, affecting the company's financial position [158]. Workforce and Diversity - As of November 30, 2020, NOVAGOLD had 13 full-time employees, with 46% of the workforce being women, reflecting the company's commitment to diversity [86][88]. - The company is dependent on key executives and skilled personnel, and the loss of these individuals could adversely affect business operations [179]. Shareholder and Financial Structure - The largest shareholder, Electrum, holds 25.52% of the common shares, influencing corporate decisions and potentially affecting market price and liquidity [154]. - Liquidity risk is managed through capital structure and financial leverage, with accounts payable due within one year [161]. - Interest rate risk associated with a promissory note could result in a $1.1 million increase or decrease in interest accrued per annum with a 1% change in the U.S. prime rate [162]. - The company faces credit risk with notes receivable totaling $75 million and $25 million from a subsidiary of Newmont, contingent on project feasibility studies [159].

NovaGold Resources Inc. (NYSE:NG) Q3 2020 Earnings Conference Call October 1, 2020 11:00 AM ET Company Participants Melanie Hennessey - VP, Corporate Communications Thomas Kaplan - Chairman Greg Lang - President and CEO David Ottewell - VP and CFO Conference Call Participants Lucas Pipes - B. Riley FBR Operator Thank you for standing by. This is the conference operator. Welcome to the NovaGold Third Quarter Financial Results Conference Call. As a reminder, all participants are in listen-only mode and the co ...