NovaGold's Q4 2024: Key Contradictions on Donlin Gold Permits, Major Interest, and CapEx Expectations

Donlin Gold Project Status:
- NOVAGOLD's Donlin Gold project is considered a Tier 1 asset with 39 million ounces at a grade of 2.25 grams per tonne, promising a mine life of nearly 3 decades.
- The project's progress includes securing most federal and state permits, with strong partnerships and social license support from private landowners Calista and TKC.
- The project is positioned for an updated cost estimate, with ongoing exploration and technical work to increase ounces and extend mine life.

Financial Performance:
- NOVAGOLD reported a loss of $45.6 million for the 2024 fiscal year, with earnings per share at negative $0.14.
- The loss was primarily due to lower field expenses at Donlin Gold, partially offset by higher corporate, general, and administrative expenses.
- The company ended the year with $101.2 million in cash and term deposits, positioning it for continued investment in the project.

Project Budget and Appetite:
- The Donlin Board approved a 2025 budget of $43 million on a 100% basis, with significant allocations for drilling and camp operations, mine planning, and cost estimate updates.
- Despite inflationary pressures, there is an appetite among majors for projects like Donlin Gold, with a cautious yet measured approach to investment in long-term projects.

Regulatory Support and Permitting:
- The project maintains strong federal and state permits, with ongoing support for its water quality and mining rights.
- President Trump's executive order aims to strengthen Alaska's regulatory framework, potentially boosting investor confidence in natural resource projects.

Community Engagement and Partnerships:
- NOVAGOLD emphasizes ecological stewardship and community involvement, working with Calista and TKC to engage local communities and governments in Alaska.
- The project's commitment to local partnerships and community well-being is integral to its success, as demonstrated by ongoing initiatives and public open houses.