NOVAGOLD(NG) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - NovaGold reported a fiscal 2025 fourth quarter net loss of $15.6 million, an increase of $4.7 million from the prior year, primarily due to higher site activity at Donlin Gold and increased general and administrative expenses [35] - For the full year, the company reported a net loss of $94.7 million, which included a $39.6 million non-cash, non-recurring charge related to warrants issued for a backstop commitment [35] - The treasury increased by $13.9 million during fiscal 2025, ending the year with $115.1 million [36] Business Line Data and Key Metrics Changes - Donlin Gold expenditures increased by $9 million due to the 2025 field program, reflecting the company's second consecutive quarter with a 60% interest in Donlin Gold [35] - Corporate general and administrative cash spend increased by $1 million compared to the prior year [36] Market Data and Key Metrics Changes - The market reception for NovaGold has improved significantly, with the stock price rising from a low of $2.50 early last year to current levels, indicating a potential for major revaluation [7] Company Strategy and Development Direction - NovaGold aims to build what could be America's largest single gold mine, emphasizing the strategic partnership with Paulson and the alignment of interests [3][4] - The company is focused on advancing the Donlin Gold project, with plans for a bankable feasibility study and ongoing exploration to enhance resource conversion [39][48] - The company is also exploring financing opportunities, leveraging partnerships with sovereign wealth funds and other investors [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the gold market, citing strong demand from central banks and the potential for gold prices to reach $3,000-$5,000 [16][25] - The company believes it is in a favorable jurisdiction (Alaska) for mining, which will support its operational stability and growth [10][46] Other Important Information - The company completed an 18,000-meter drill program at Donlin, with a focus on enhancing geological modeling and resource conversion [39] - NovaGold has maintained a strong environmental and safety record, which is crucial for its operations in Alaska [43] Q&A Session Summary Question: What is the ideal structure of the agreement with Glenfarne Group? - Management indicated that discussions are ongoing and that Glenfarne is interested in building and operating the pipeline, with further announcements expected soon [54] Question: How is the budget for the bankable feasibility study allocated? - The budget for 2026 includes significant components for the feasibility study, ongoing exploration, and community engagement, with the feasibility study expected to take about 18 months [60][62] Question: Is the tailings design finalized? - The tailings dam design is finalized and submitted, with no anticipated changes, ensuring stability and compliance with regulatory standards [66] Question: What are the project economics targeted in the BFS? - The project economics at a gold price of $2,100 indicate a double-digit rate of return, with significant leverage to higher gold prices [67]