• Net Loss: $45.6 million for the 2024 fiscal year.
• Earnings Per Share: Negative $0.14 for the 2024 fiscal year.
• Cash and Term Deposits: $101.2 million as of November 30, 2024.
• 2024 Cash Expenditures: Lower than budget by $1.1 million.
• 2025 Anticipated Expenditures: Approximately $37.5 million, including $21.5 million for Donlin and $16 million for corporate G&A.
• 2025 Budget for Donlin Gold: $43 million on a 100% basis.

• Warning! GuruFocus has detected 1 Warning Sign with NG.

Release Date: January 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Donlin Gold is considered a Tier 1 asset with 39 million ounces at a grade of 2.25 grams per tonne, more than double the industry average.
• The project has secured all necessary federal permits and the majority of state permits, indicating readiness for advancement.
• Strong partnerships with Calista and TKC reinforce the project's social license and commitment to local communities.
• The project is located in Alaska, a stable Tier 1 mining jurisdiction, enhancing its attractiveness.
• NOVAGOLD has a strong treasury with over $100 million, positioning it well to fund future activities.

Negative Points

• NOVAGOLD reported a loss of $45.6 million for the 2024 fiscal year, reflecting its status as a development-stage company with no production.
• There are ongoing legal challenges related to the project's permits, requiring continued defense and resources.
• Inflationary pressures and cost overruns are concerns that could affect project advancement and investor interest.
• The timeline for initial production remains uncertain, with no specific guidance provided.
• Corporate general and administrative expenses have increased, impacting overall financial performance.

Q & A Highlights

Q: What is your view on project appetite among the majors, considering concerns around cost overruns and inflation? How might this change under the new administration? A: Gregory Lang, President and CEO, stated that the project appetite is real, though inflationary pressures make evaluations more diligent. The industry still needs projects like Donlin, and inflationary pressures are subsiding. The change in administration is seen as positive for the natural resource industry, with President Trump's executive order supporting responsible development in Alaska, encouraging investment.

Q: Could you break down the 2025 budget of $43 million approved by the Board? A: Gregory Lang explained that $15 million is allocated for drilling and camp operations, $5 million for updating capital and operating costs, $2 million for permit defense, and additional funds for community relations and stakeholder engagement. The largest increase is in drilling and cost estimation, which adds substantial value.

Q: Have there been any recent discussions with Barrick leading to a decision toward construction? A: Gregory Lang mentioned that the planned work for the coming year, including cost estimates and detailed drilling, lays the foundation for a future feasibility study, which is the next major step toward a construction decision.

Q: What is the timeline for initial production based on the current work in 2025? A: Gregory Lang noted that while no specific timeline has been provided, the current work is crucial for a future feasibility study. Once completed, the feasibility study will take approximately 18 to 24 months, after which a construction decision can be made.

Q: What were the financial results for 2024? A: Peter Adamek, Vice President and CFO, reported a loss of $45.6 million and negative earnings per share of $0.14 for 2024. The net loss decreased by $1.2 million from 2023 due to lower field expenses at Donlin Gold, offset by higher corporate expenses and interest expenses.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.