Financial Performance - For the three months ended February 29, 2024, the net loss was $10.318 million, a decrease of $0.3 million compared to a net loss of $10.659 million for the same period in 2023[31]. - Total operating expenses for Q1 2024 were $9.220 million, down from $10.082 million in Q1 2023, reflecting lower costs at Donlin Gold[31]. - Cash and cash equivalents decreased by $8.2 million in Q1 2024, primarily due to funding for Donlin Gold and corporate administrative expenses[32]. - General and administrative expenses increased to $6.259 million in Q1 2024 from $5.607 million in Q1 2023, primarily due to corporate staff additions[31]. - Interest expense on promissory notes rose to $3.597 million in Q1 2024 from $2.944 million in Q1 2023[30]. - Total assets as of February 29, 2024, were $126.884 million, down from $133.290 million as of November 30, 2023[30]. - Total liabilities increased to $143.001 million as of February 29, 2024, compared to $141.513 million as of November 30, 2023[30]. Project Development - The Donlin Gold project boasts approximately 39 million ounces of gold with a grade of 2.24 grams per tonne, which is twice the gold industry average[25]. - Donlin Gold is committed to advancing a full bankable Feasibility Study to optimally position the project for a potential positive construction decision[6]. - The project has a projected production life of at least 10 years and annual projected production of at least 500,000 ounces of gold[4]. - The Donlin Gold project has approximately 39 million ounces of gold in the Measured and Indicated Mineral Resource categories, with a mine life expected to produce over one million ounces per year[36]. Community Engagement and Environmental Initiatives - In the first quarter of 2024, Donlin Gold finalized another Shared Values Statement, bringing the total count to 16, highlighting community engagement efforts[9]. - The company is actively engaged in environmental and social initiatives, including monitoring salmon populations in the Kuskokwim and Yukon River watersheds[11]. - Donlin Gold's activities include extensive outreach efforts to support community engagement and permitting processes[5]. Financial Outlook - Anticipated expenditures for fiscal year 2024 are approximately $31.2 million, including $14.3 million for the Donlin Gold project and $16.9 million for corporate general and administrative costs[33]. - NOVAGOLD aims to advance the Donlin Gold project toward a construction decision and maintain support among stakeholders in 2024[34]. Permitting and Regulatory Status - NOVAGOLD is focused on maintaining existing permits and advancing outstanding requirements for the Donlin Gold project[5]. - The project is located on private land designated for mining under the Alaska Native Claims Settlement Act, with key state permits secured[7]. Ongoing Operations - The ongoing metallurgical test work with a pilot plant in Ontario, Canada, is expected to conclude later in 2024[5].

Financial Performance - The net loss for NOVAGOLD decreased by $341 in Q1 2024 compared to the same period in 2023, attributed to lower costs at Donlin Gold and increased interest income[80]. - Cash and cash equivalents decreased by $8,246 in Q1 2024, primarily due to funding for Donlin Gold and corporate administrative expenses[83]. - The company maintains sufficient working capital to cover anticipated funding for the Donlin Gold project and corporate costs for at least the next three years[81]. - The Company holds cash and cash equivalents of $37,503,000 and term deposits of $80,000,000, primarily with high-rated Canadian banks[85]. - The promissory note payable to Barrick amounts to $140,345,000, with interest tied to the U.S. prime rate, indicating a potential annual interest fluctuation of approximately $1.4 million for a 1% change in the prime rate[88]. Project Funding and Budget - In Q1 2024, NOVAGOLD's share of funding for the Donlin Gold project was $3,623, with an expected total funding of $14,250 for the year[63]. - The Donlin Gold LLC board approved a budget of $28,500 for 2024, focusing on resource modeling, mine planning, and metallurgical test work[62]. - Anticipated expenditures for fiscal year 2024 are approximately $31,200, including $14,250 for the Donlin Gold project and $16,950 for corporate general and administrative costs[82]. - The company recognizes the importance of obtaining additional financing to support future operations and project development[81]. Regulatory and Permitting Status - The Alaska Pollutant Discharge Elimination System permit and Waste Management Permit are administratively extended pending renewal, with the Reclamation Plan approval extended to January 2025[71]. - NOVAGOLD's financial position is impacted by the ongoing litigation and permitting processes related to the Donlin Gold project[74]. Risk Management and Internal Controls - Management confirmed the effectiveness of disclosure controls and procedures as of February 29, 2024, ensuring timely and accurate reporting[89]. - There have been no material changes to the risk factors affecting the Company since the last annual report filed on January 24, 2024[94]. - The Company has not experienced any material current, pending, or threatened litigation[93]. - No changes in internal control over financial reporting have occurred that could materially affect the Company's financial reporting[90]. - The Company maintains a concentration of credit risk with cash and cash equivalents held at high investment-grade Canadian banks[87]. - The interest rate risk associated with the promissory note is variable, impacting the Company's financial obligations based on fluctuations in the U.S. prime rate[88]. Corporate Governance - As of March 27, 2024, the Company had 334,371,223 common shares issued and outstanding, along with 9,805,100 stock options and 2,173,000 PSUs[84]. - During Q1 2024, no directors or executive officers adopted or terminated any trading arrangements[102].

Financial Data and Key Metrics Changes - The company's treasury remained strong with cash and term deposits totaling $125.7 million as of November 30, 2023, with anticipated expenditures for 2024 around $31 million, including $14 million for Donlin and $17 million for corporate G&A [8][35] - The net loss for the year decreased by $6.5 million from 2022, primarily due to lower field expenses at Donlin Gold and increased interest income [78] Business Line Data and Key Metrics Changes - Donlin Gold holds approximately 39 million ounces of gold at an impressive grade of 2.25 grams, which is more than twice the industry average, and has a projected mine life of almost 30 years [30][74] - Donlin Gold's expenses were lower in 2023 due to the completion of geotechnical drilling compared to the larger exploration drilling program in 2022 [7][35] Market Data and Key Metrics Changes - The gold industry is experiencing a decline in reserves, with the company positioned to capitalize on this trend due to its high-grade assets in a safe jurisdiction [15][74] - The equities market in the gold space is considered highly undervalued, with the company emphasizing the importance of holding Tier 1 assets in Tier 1 jurisdictions [14][74] Company Strategy and Development Direction - The company is focused on advancing the Donlin Gold project through a feasibility study before moving into production, emphasizing that the economics must justify any production decisions [20][104] - The management team believes that Donlin Gold has the potential to be a significant and cost-effective producer, with plans to continue drilling to expand resources [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the permitting process for Donlin Gold, noting that all appeals against the project have been unsuccessful to date [6] - The company is prepared for potential litigation as part of the permitting process, viewing it as a normal aspect of the mining industry [68] Other Important Information - The company has maintained a strong commitment to environmental stewardship, community engagement, and cultural preservation throughout its operations [5][31] - The management team highlighted the importance of their relationships with Alaska Native Corporations, which are crucial for the project's success [4][73] Q&A Session Summary Question: What is the extent of testing along the eight-kilometer mineralized trend? - The company indicated that ore-grade intercepts are present along the trend, with potential for expansion at depth and along strike [108] Question: How does the drilling impact mine life and development approach? - The company noted that increased resources could extend mine life and may lead to discussions about building a larger facility [109] Question: How does the company handle strategic differences with its partner? - The management described their partnership as a 50-50 relationship, emphasizing ongoing dialogue and collaboration to resolve differences [110]

Donlin Gold Project Highlights - Donlin Gold is positioned to become a million-ounce gold producer in the Americas[6], with an anticipated 1.13 million ounces per year over a 27-year mine life[6] - The project boasts 39 million ounces of gold contained in measured and indicated mineral resources[25], with an average grade of 2.24 g/t Au, more than double the global average[25] - From 2006 to 2011, measured and indicated resources increased by 135% from 16.6 million ounces to 39 million ounces[8] - The 2024 budget for Donlin Gold LLC is approved at $28.5 million for mine planning, metallurgical test work, regional infrastructure support, resource modeling, geoscience hydrology, closure planning, dam certificates, litigation support, government affairs, community engagement, and sponsorships[39] Financial Performance - NOVAGOLD's cash and term deposits balance was $125.7 million as of November 30, 2023[36] - The company forecasts spending $14.25 million on the Donlin Gold project and $16.95 million on corporate G&A, totaling $31.2 million[37] - The net loss for the year ended November 30, 2023, was $46.8 million, compared to $53.3 million in 2022[32] Market and Investment Thesis - Gold equities have underperformed the price of gold, creating an opportunistic entry point for investors[42] - Central banks are robustly acquiring gold, with purchases at 2.58 times the preceding decade's quarterly average since the Russia-Ukraine war[43], acquiring 337 tonnes[43] - Top 10 mining companies' reserves dropped by 33% in the past 15 years[45]

Donlin Gold Project Updates - In 2023, the Donlin Gold project completed a field program that included 1,840 meters of geotechnical drilling, 74 test pits, and 25 kilometers of seismic survey[53]. - The Donlin Gold LLC board approved a budget of $28.5 million for 2024, focusing on resource modeling, mine planning, and dam safety certificate applications[55]. - The 2023 field program included hydrogeologic drilling with instrumentation and pump tests, providing essential information for mine planning[53]. - The company is focused on advancing the Donlin Gold project for the benefit of all shareholders and stakeholders[55]. Financial Performance - The average daily afternoon LBMA gold price for 2023 was $1,941 per ounce, with a high of $2,078 and a low of $1,811[66]. - A 1% change in the U.S. prime rate would result in an increase or decrease of approximately $1.4 million in interest accrued on the promissory note owed to Barrick per annum[361]. Safety and Compliance - The Donlin Gold project has worked over 3.4 million hours without a lost time incident, reflecting a strong safety record[53]. - The company is in compliance with all material respects of applicable mining, health, safety, and environmental regulations in the United States[58]. Operational Capability - The competition for financing and technical expertise in mineral resource exploration is significant, with competitors having greater resources[59]. - The company has successfully secured the necessary equipment and supplies for its operations, indicating no foreseeable shortages[63].

NovaGold Resources Inc. (NYSE:NG) Q3 2023 Earnings Conference Call October 4, 2023 11:00 AM ET Company Participants Melanie Hennessey - Vice President, Corporate Communications Greg Lang - President and Chief Executive Officer David Ottewell - Vice President and Chief Financial Officer Conference Call Participants Nick Giles - B. Riley Securities Operator Thank you for standing by. This is the conference operator. Welcome to the NovaGold 2023 Third Quarter Financial Results Conference Call and Webcast. As a ...

PART I - FINANCIAL INFORMATION [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents NOVAGOLD RESOURCES INC.'s unaudited interim financial statements, including balance sheets, statements of loss, cash flows, and equity - The company's principal asset is a **50% interest in the Donlin Gold project** in Alaska, owned and operated by Donlin Gold LLC, a joint venture with Barrick Gold Corporation. NOVAGOLD has no realized revenues from its planned principal business[27](index=27&type=chunk) [Condensed Consolidated Interim Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Balance%20Sheets) Total assets decreased to $138.1 million from $159.2 million, while total liabilities increased to $138.1 million, driven by accrued interest on the promissory note Condensed Consolidated Interim Balance Sheets (As of August 31, 2023 vs. November 30, 2022) | (in thousands USD) | August 31, 2023 | November 30, 2022 | | :--- | :--- | :--- | | **Current Assets** | $131,895 | $152,538 | | *Cash and cash equivalents* | $44,079 | $63,882 | | *Term deposits* | $86,000 | $62,000 | | *Notes receivable* | $0 | $24,421 | | **Total Assets** | **$138,133** | **$159,189** | | **Current Liabilities** | $3,960 | $4,599 | | **Promissory note** | $133,274 | $123,685 | | **Total Liabilities** | **$138,092** | **$129,286** | | **Total Equity** | **$41** | **$29,903** | [Condensed Consolidated Interim Statements of Loss and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) Net loss for Q3 2023 decreased to $11.1 million ($0.03/share) from $16.1 million, driven by lower Donlin Gold equity loss Statements of Loss (Three and Nine Months Ended August 31) | (in thousands USD, except per share) | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | General and administrative | $5,243 | $4,872 | $16,385 | $15,420 | | Equity loss – Donlin Gold | $3,978 | $9,412 | $15,996 | $21,893 | | **Loss from operations** | **($9,221)** | **($14,284)** | **($32,381)** | **($37,313)** | | Interest expense on promissory note | ($3,433) | ($2,198) | ($9,589) | ($5,394) | | Other income, net | $1,435 | $147 | $5,084 | $988 | | **Net loss** | **($11,074)** | **($16,123)** | **($36,382)** | **($41,088)** | | **Net loss per share** | **($0.03)** | **($0.05)** | **($0.11)** | **($0.12)** | [Condensed Consolidated Interim Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $6.0 million, with cash and cash equivalents decreasing by $19.8 million to $44.1 million Cash Flow Summary (Nine Months Ended August 31) | (in thousands USD) | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($5,965) | ($9,967) | | Net cash provided from (used in) investing activities | ($13,838) | ($16,925) | | Net cash used in financing activities | $0 | ($2,122) | | **Net change in cash and cash equivalents** | **($19,803)** | **($29,192)** | | **Cash and cash equivalents at end of period** | **$44,079** | **$61,932** | [Notes to Condensed Consolidated Interim Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Notes detail accounting policies, Donlin Gold investment, Barrick promissory note terms, and the $25 million Newmont payment - The company received a **$25 million note receivable payment** from Newmont on July 27, 2023, related to the sale of the Galore Creek project. A final **$75 million contingent note** remains, but no value has been assigned as project construction approval is not deemed probable[37](index=37&type=chunk)[38](index=38&type=chunk) - The company has a promissory note payable to Barrick totaling **$133.3 million**, comprising **$51.6 million in principal** and **$81.7 million in accrued interest**. The note is payable from 85% of NOVAGOLD's share of future mine production revenue or proceeds from reducing its interest in Donlin Gold[44](index=44&type=chunk) Investment in Donlin Gold (Nine Months Ended August 31, 2023) | (in thousands USD) | Amount | | :--- | :--- | | Balance – beginning of period | $3,848 | | Share of losses | ($15,996) | | Funding | $15,247 | | **Balance – end of period** | **$3,099** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Donlin Gold project advancement, including stakeholder engagement, permitting, and litigation, noting decreased net loss and sufficient liquidity [Donlin Gold Highlights](index=18&type=section&id=Donlin%20Gold%20highlights) This section highlights Donlin Gold's non-technical progress, including stakeholder engagement, advancing permits, and defending against legal challenges - Donlin Gold's partnerships with Calista Corporation and The Kuskokwim Corporation (TKC) are central to its outreach in the Yukon-Kuskokwim (Y-K) region, formalized by **14 Shared Values Statements** with key villages[59](index=59&type=chunk) - A new air quality permit was issued in July 2023 and was not appealed. The re-issuance of the Alaska Pollutant Discharge Elimination System (APDES) permit is underway and expected in 2024[68](index=68&type=chunk) - The company successfully defended several permits: the ADEC Commissioner reaffirmed the **401 Water Quality Certification** in August 2023, and the Alaska Superior Court affirmed the State pipeline ROW lease and water rights permits. An appeal of the ROW lease is now before the Alaska Supreme Court[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) - A new lawsuit was filed in April 2023 by Earthjustice against the U.S. government, seeking to invalidate the Donlin Gold Joint Record of Decision, including the federal **404 permit**. The State of Alaska, Donlin Gold, and Calista have intervened in the case[73](index=73&type=chunk) [Donlin Gold Project](index=20&type=section&id=Donlin%20Gold%20project) Donlin Gold project focuses on updating geological models, optimizing design, and advancing permits, with the 2023 field program completed for dam safety data - The 2023 field program was completed in July and included **1,840 meters of geotechnical drilling** and **1,279 meters of hydrogeologic drilling** to gather data for water retention structures and mine planning[75](index=75&type=chunk) - NOVAGOLD's expected share of funding for the Donlin Gold project for the full year 2023 is **$18 million**[77](index=77&type=chunk) [Consolidated Financial Results](index=22&type=section&id=Consolidated%20Financial%20Results) Net loss decreased in Q3 and the first nine months of 2023, driven by lower Donlin Gold field expenses and increased interest income - Q3 2023 net loss decreased by **$5.0 million** compared to Q3 2022, mainly due to lower Donlin Gold expenses and higher interest income[82](index=82&type=chunk) - Net loss for the first nine months of 2023 decreased by **$4.7 million** compared to the prior-year period, for similar reasons as the quarterly decrease[83](index=83&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) NOVAGOLD expects sufficient working capital for three years, with anticipated fiscal 2023 expenditures of **$32 million**, supported by cash and term deposits - The company anticipates total expenditures of approximately **$32 million** in fiscal year 2023, including **$18 million** for its share of the Donlin Gold project[85](index=85&type=chunk) Financial Position as of August 31, 2023 | Item | Amount (in thousands USD) | | :--- | :--- | | Cash and cash equivalents | $44,079 | | Term deposits | $86,000 | | Promissory note payable to Barrick | $133,274 | - As of September 26, 2023, the company had **334,181,149 common shares outstanding**[4](index=4&type=chunk)[89](index=89&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Primary market risks include credit risk, mitigated by highly-rated Canadian bank deposits, and interest rate risk from the variable-rate promissory note to Barrick - Credit risk is mitigated by holding cash and term deposits primarily at three large Canadian chartered banks with high credit ratings (**S&P: AA- or A-1, Moody's: Aa1 or Aa3**)[92](index=92&type=chunk) - A **1% change in the U.S. prime rate** would change the annual interest accrued on the promissory note by approximately **$1.3 million**[93](index=93&type=chunk) [Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of August 31, 2023, with no material changes to internal controls - The President and CEO and the CFO concluded that the company's disclosure controls and procedures are **effective**[95](index=95&type=chunk) - No changes occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[96](index=96&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=25&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any material litigation outside of ordinary business, with Donlin Gold permit challenges detailed in MD&A - The company is not aware of any material current, pending, or threatened litigation, other than routine litigation incidental to its business[99](index=99&type=chunk) [Risk Factors](index=25&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 - No material changes have been made to the risk factors set forth in the Annual Report on Form 10-K for the year ended November 30, 2022[100](index=100&type=chunk) [Other Disclosures](index=25&type=section&id=Other%20Disclosures) This section confirms no unregistered equity sales, no defaults on senior securities, and no applicable mine safety disclosures - Item 2: No unregistered sales of equity securities[101](index=101&type=chunk) - Item 3: No defaults upon senior securities[101](index=101&type=chunk) - Item 4: Mine safety disclosures are not applicable[102](index=102&type=chunk)

NOVAGOLD | --- | --- | |--------------------------------------------------------------------|-----------------------------------------------| | | | | | | | | | | | | | Second Quarter | Introduction Mélanie Hennessey | | 2023 webcast | Vice President, Corporate Communications | | | 2023 Second Quarter Update Greg Lang | | & conference call | President & Chief Executive Officer | | agenda | 2023 Second Quarter Financials David Ottewell | | | Vice President & Chief Financial Officer | | | Question & Answer Ses ...

NovaGold Resources Inc. (NYSE:NG) Q2 2023 Earnings Conference Call June 28, 2023 11:00 AM ET Company Participants Melanie Hennessey - VP, Corporate Communications Greg Lang - President and Chief Executive Officer David Ottewell - Vice President and Chief Financial Officer Conference Call Participants Nick Giles - B. Riley Securities Operator Thank you for standing by. This is the conference operator. Welcome to the NovaGold 2023 Second Quarter Financial Results Conference Call and Webcast. As a reminder, al ...

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 May 31, 2023 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 of In ...