NG - Earnings call transcript Q2 2024 | NovaGold Resources Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by. This is the conference operator. Welcome to the NOVAGOLD 2024 Second Quarter Financial Results Conference Call and Webcast. [Operator Instructions] And the conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Melanie Hennessey, Vice President, Corporate Communications. ahead. go Please

Melanie Hennessey

Ashia. Good morning,

have pleased phone. CFO. second that update us are webcast, take NOVAGOLD's call, have the Lang; will CEO, and we David the you financial results end NOVAGOLD's Ottewell, we today's quarter On an President Gold for President and and Donlin Greg and We Vice project. joined by NOVAGOLD's At also on the questions for of

President as risks likely projections would Additionally, CEO, Greg? this on involve we contain questions filings to any to made will Greg and Slide stated various will disclaimers detailed which to our you, EDGAR statements presentation. I and received by X, presentation SEDAR and like in our the forward-looking remind now e-mail. I Lang. information, in and included respond today are may turn forward-looking such to over goals, as

Greg Lang

Thank you, everyone. Melanie, good and morning,

and Donlin to Tier Let's both Donlin, by highlighting call to why are we investment increasingly our emphasize asset. regard our assets, X and vital thesis begin such shareholders industry. why as a as I today's the Gold want

Let's the impressive attributes project, Gold shown Slide the X. Donlin on discuss as of

is set -- X low around position a resources. our a the an team current the demonstrating one of has secured is average. First, significant in in that its state for almost the top boasts produce exploration state's This ensures Donlin majority the XX project the of and landholdings a to across on as producers Gold future operation. the million all designated million mine the life only from tonne, with more land successful projected growth. Supported year with benefits environment. Gold The of decades per regulations experienced solidifying by and track potential stable provide stable ounces permits long-term, X federal Alaska, cost, at on for the Donlin development mine on industry a a X required record in a Americas, grade Situated ounces for over of Moreover, based than offer privately our double project industry management grams regulatory permits, which gold supportive the readiness mining almost development advancement. strong is the

strategic Our primary development, Donlin's leadership crystal and essential Donlin license from Kuskokwim reorganization shown long-standing Gold NOVAGOLD's and operate. partnerships has with initiated a Thomas our The the in over Since potential. and further restructuring, project Corporation to as Kaplan, potential to asset prized as our Calista under origins, Gold's cornerstone decade Donlin its with a collectively outline factors journey it long-term strengthened objective X, early robust on fullest value. It's to the position Alaska, the as significant clear to social been Chairman; These ago to Slide of our Dr. myself. our advance XXXXs

decision when have the We to the conditions update for positioning a of study the goal to commitment for and market project of Donlin logical construction feasibility the is next step pursuit critical this mission. The maintained with the favorably a align. steadfast

private unwavering responsible progress growth tangible project the met are X, role we and dedication value as advancing and Slide economic understanding trust process, loyalty engagements in of underscores offered invaluable significance emphasized flagship leveraging mining have dedication its development. Throughout economic community over Calista expertise landowners guidance, designated this their stakeholders, the investment to our to of Our and ensuring shareholders, sustainability with efforts Calista aligns economic heritage Gold's and bolster and communities. sustainable deep steadfast within for TKC all our and job serve critical to Their commitment creation. On with long-term permitting future and progressive of Donlin generations. closely contributing to crucial of ensuring the enduring Yukon-Kuskokwim and creation prosperity their steadfast cornerstone elders' Gold of the These land partnerships phases. of of development and Donlin responsible TKC initiatives, stewardship development development Donlin in the to With across and and lasting activities the potential their cultural underscore community the preservation demonstrates responsible the well-being. land to years the ago, a and to region support XX to collaborative local vision are Gold. become Their a

mining Report globally is robust X Intelligence. Risk ranked mining and and for is Alaska jurisdictions out world-leading out and in environment, only secure Journal third stands its its the It and AA Looking XXX as renowned rating established at safety processes. global well-defined XX achieve by of an jurisdiction, Mining Slide particularly its permitting X. World of a to for in

the development. United second that a by government largest numerous resource responsible producer As in and Alaska success States, facilitated the recognizes the gold of importance the underpinned companies natural has of supports actively

it of as when development in among the largest envisioned, one undeveloped on Americas, reserves other to grade gold the Gold's shown ranks as X. highest pit Slide distinctive qualities with open Donlin currently Turning and projects compared world's

as XX. easily open on to in Slide As producers per the gold faces global longevity the pit a for Donlin almost increasingly positioned navigating the industry for of tonne, exceeding grade stage gold for effectively. Moreover, X.XX Demands scale, production critical characterized projects of as projects trends most high-quality grade cycles becomes one development emerge the projects. and multiple is cost-effective scarcity downward, of by the indicated industry industry. with average grams

Today's exist is deposits, $XX at Turning graphic exploration a the discount The the value ACMA chart, XX. with to exceeding $XX bar right-hand billion a of X% indicating of rate. Significant Slide the price toward price post-tax the illustrates end and Donlin discount higher no beyond Slide or potential net across billion value resources in applied the opportunities chart as defined the in on XX. rate approximately shown corner upper Lewis positioning present scenarios. gold Gold's various gold

only the corporate mine exploration resources extend safety, and engagement further the of through highlights social NOVAGOLD's the there to XX across environmental governance. land. Slide covering and stewardship, life current achievements the belt, health and expand X substantial of X-kilometer reserves an XXXX potential kilometers With is

excellent of in remain latest Sustainability thoroughly milestones at of standards extend shaping appreciation utmost ESG workforce Native local their April comprises as sincere discuss in and invaluable the Together, ESG our these project the and we of contributions Donlin advance well-being stakeholders a Gold the of all have pledge collaboration of toward and We second our initiatives. The future Donlin uphold achieved performance at achieving sustainability execution the in Corporation lost these the to Report exemplified in our efforts local partners and success incidents pivotal safety quarter by for highest our the our our objectives. Gold a in Alaska community Our assesses of critical Gold, now our published activities. well site, importance, areas. been of and Their planning, these of to without hires. reinforce responsibility the team as as decade-long Donlin ongoing where some time our significant record will proportion our goals. I NOVAGOLD's

demonstrated. project XX. the easily The Donlin significant Gold is to Moving we've made progress in Slide

we've owners With the made from the and strong advancements. Donlin notable board, Gold the backing

updated Canada. to also the expect This made Our validate later we through resource a model has led our aims sheet, optimizations been efforts in test to independent year. third-party. Significant in work to actively metallurgical and at flow pilot progress being enhanced Ontario, by which an complete work is plant this

closure We mine surface advancing efforts update incorporating from planning. energy regional for on characteristics latest data technical regional have and future narrowing endeavors hydrology opportunities. models, focusing geochemical work Donlin These ongoing for to are Moreover, geared support positioning to all Gold have collect scope the favorably infrastructure groundwater of to towards updating our and been and development. continued, the future the field our water continuing geoscience data

specific Slide health, Statement, communities stewardship leaders Difficulty] address to TKC Shared ongoing across Donlin their engagement needs. with its collaboration continued in Turning our local to the to Gold Values quarter strong Calista, second emphasizing environmental and XX our with agreement goal cultural Y-K the XXth with education, preservation XX, signed relationships. in communities [Technical build and local and

Yukon a juvenile was launch local salmon tribes substantive enhance with Advisory health salmon project second has to fostering to and identified been plan Aniak George and Subsistence in in problem-solving fisheries monitoring Committee the in monitoring in actively third Community to Kuskokwim structural a watersheds population's held and issues. The communication, The opportunities initiative and dialogue, have the Corporation's team gathering salmon the the on meeting River with significant input platform for quarter, Kuskokwim River. Alaska tributary the a community Native River,

a Representative, amicus federal Native the important a ventures setting federally designated and engaging with on necessary In of offering activities for Gold permitting recognize to college diligence and Additionally, feature safest distinct submitted underscores Kuskokwim the the global situated of in of all one impoverished bipartisan the navigating other the Federal U.S. Senators, commitment the Donlin to Lower one jurisdictional We Alaska by U.S. Alaska's Washington, including of Peltola, Dan efforts date. permits many world's regions is with the of educational permitting enterprise, for Alaska free of School Donlin Court, Department from over environments a economic today's details Donlin stable, complexity most the the mining and and process, standards. career advocate as land XX Donlin ago. to of years remain a the Congressional traveled critical Claims foresight. apart and This politically importance the peace importance Lisa sponsoring amongst Delegation. stands projects initiatives, the and in with Gold U.S. in eventually Crooked Council to Settlement most Alaska. Slide Sullivan, XX rigorous development socially Act This Mary safety, April, outreach one Department D.C. under and both preparedness Justice. District's and supported joint brief directly state along for Donlin to obtained of the Alaska permitted key project, for the with Gold in state. These Creek private project certificates Traditional is and referring and project. Furthermore, annual world underscore our mind. as particularly variations U.S. of Justice investors in the mining fair, throughout engagement Murkowski the the

rigorous June the In the In were design filed the litigation of Slide Calista State Natural Resources Certification permit, filed the on April opening preparation quarter, early permitting Joint in the including processes anticipated packages Looking the XXXX. We of federal the on June on supporting second of the Congressional XX. February. Creek at Decision, in Safety States Record Alaska. project XX, Dam briefs and to of meticulous and held the submitted the XX. were the Gold, Department decision delegation. XX. intervenors' Alaska both Oral Donlin recognize were the XXX village is submitted organization in briefs Alaska United in on Alaska and of by arguments were a briefs preliminary their Amicus Crooked in and and navigating importance

steadfast as to Our state D.C. With the review for we navigate this dedication Alaska agencies quarter that, Donlin support bipartisan continue the turn closely financial Washington, our project, in to highly remains engagement and call with collaborate and value Gold results. will the both over in to to comprehensive Ottewell and project. Dave? We second I federal David

David Ottewell

Donal staff partially loss partially interest and year term due you, XX. In corporate primarily year, highlights in highlighted project additional decreased general advance lower the to no along the the administrative options are We reported to net promissory costs $X.X prior with of operating field Donlin from by capital note due hiring fees on million, the Greg. Slide million and and administrative on of increased Gold a decrease $X.X our primarily funding, cash second for share offset second promotions income Thank quarter, and costs to offset interest working of our quarter, consulting and changes. related performance. and $XX.X the by XX Donlin expense to million and with Gold Slide increased program our professional expenses this project. Cash by flows evaluation quarter, a deposits Gold

$X.X was partially requirements, year million offset we to net Gold of funding than note strong quarter our costs. On Slide the XX, and prior increased lower Donlin cash administrative lower Our deposits use by treasury. term due

$XX nearly Our deposits financial of $XX of million. and position equivalents term includes cash and cash million

Donlin budget. corporate year-to-date, with line the in funding For our Gold G&A are and

over we year, approximately spend and for now $XX Donlin for including will million the to corporate G&A expect the turn million For Gold. I back $XX presentation Greg. $XX million, full to

Greg Lang

Dave member retiring. XX. for pending Barrick continue Dave. people sure And you, Discussions various as years, many valued want for and $XX thank to his we mine on grateful Gold Board importantly, shown advancing as support, with fully to infrastructure the applications resource for a safety And regional government and saw and as Thank of ongoing NOVAGOLD value over chain Donlin being years, of million tenure. Last our sponsorships. and moving the December, modeling, next stage work, approved XX support This the litigation, year, remain ongoing up to budget to has we community ongoing affairs, work, hydrology announcement, and the Donlin Slide planning, on committed Dave I'm closure our as well contributions XX are Gold advancement the team test we its the includes development. as his dam life for engagements planning deeply metallurgical certificate the during he's at been for NOVAGOLD for to most in budget CFO are a

would are staunch and exceptional Their on responsibly he to that remain a market congratulate and Additionally, high-quality of acknowledging decision we to presence our moves stakeholder appreciation also Appreciative leveraging safe the shareholders' in crucial in shareholder company Dave Ottewell assets solidarity investment guidance, our to prime the NOVAGOLD enhancing again welcome gold to would an their sincere assume continued Donlin and NOVAGOLD jurisdictions. and as value, like I retirement. of opportunity will valued. who on in project interests. and like and for committed valuable scarce and role invest the long-term views their resolute confidence, in extend engagement our Peter team, as Adamek, deeply epitomizes behalf CFO Gold July. With to of to We the support

Gold take safe we prepared and in advancing in yield our custodians the manner Donlin strategy substantial project executing create now the responsible are to and company, As are we on focused value. Operator, of and to a progress questions. value the

Operator

Riley Instructions] from Securities. B. Lucas question The comes first [Operator Pipes with

Unknown Analyst

asking Lucas permitting. on [indiscernible] on And behalf question actually is just I of This touch to Pipes. want

you when you to permitting receive decision? dam state-level which a decision where and just days the And XX submitted stage regarding you So when do now would ago? certification, expect expect safety

Greg Lang

has that, our geotechnical started noted, last and we the and This aspects water by well authorizes that at structures structures they're And as this study you tailings the to is structures. that the our a tailings do and hand season. dam. All Alaska, retention in state. the And we preliminary and permit dam are that state have dam the engineering Donlin not question. to -- Yes, do design And to site, is applications. clear, thank have in materials, designed only we've right. have as federal to disturb the that the Well, the the your in work XXX significant necessary the noted fully dam work been permit tailings finalizing of for for administered the year, as submitted dam is certificates. safety as several the to to certificate such be we retention the the water drawing support package the been you of And one the permits and state. application as includes But

defined, think process move well roughly anticipate I the X-, fine. would the the the make X.X-year be it's along the approval done is process, with concurrently study. to we decision And and owners when feasibility which forward pretty moving would

a on but critical are the rate, are advancing we them. steadily tailings path any dam permits not at approval So item,

Unknown Analyst

CapEx. one second on is And my

So of $XX provide But XXXX. million is XXXX? can the remaining in spending maybe expect would what you capital CapEx in you level

Greg Lang

lot when the depend to year. expenditures plan make we initiate guided not Well, the that we on the have course, at new And of on for a this will decision of stage, our budgets quarter, our and typically later our the to fourth prepare expenditures. We in and quarter time, at new third on we'll, the in that a feasibility future position be study. guide marketplace

Melanie Hennessey

to question shareholder Joe [ all-time what coming conditions the With have at market other web commence a the gold required an Primamore key operations? from We high, from are ].

Greg Lang

project. Other include certainly, in that coming view mining project all-time I how investment noted, you gold years. debt any is that key run one the that gold the is, certainly, as but viewed, think, we will in are an But the conditions, I is markets there's the at and and of have drive how market good the see high. we think to higher factors -- Donlin. of equities how driver the price the really them are Donlin key finance value Well, factors we the at the decision of gold gold. pretty Gold ultimately think would room prices are the now, right And the substantial And

finish would owners our what see higher anticipate prices yes, when study, today, be that decision. will I we construction that feasibility to significantly the we a than -- positioning So gold make

Operator

the any session. I concludes like question-and-answer to This Greg back for turn conference over closing the remarks. would to

Greg Lang

for Well, NOVAGOLD. to updating we forward get everyone, on to to the project. thank time look taking Donlin you Good you continue an update day. the advance as And we

Operator

conference concludes This call. today's

a for disconnect and You pleasant day. Thank your may you have lines. participating

NovaGold Resources (NG) 27 Jun 242024 Q2 Earnings call transcript