NovaGold’s Permit Timeline and BFS Delays Spark Contradictions in 2026 Earnings Call

Date of Call: Apr 1, 2026

Business Commentary:

Project Value and Economic Potential:

• Donlin Gold has a net present value of almost $24 billion at a 5% discount rate with today’s gold price.
• The project's value is underscored by its high grade, low operating costs, and significant resource base, making it a major player in the gold industry.

Progress on Bankable Feasibility Study (BFS):

• The company has initiated the BFS, aiming to complete it within 12-18 months, with Fluor as the lead engineering firm.
• The BFS is expected to demonstrate robust economics and leverage the project's scale and grade advantages.

Exploration Potential and Resource Expansion:

• Donlin's current resource represents only 5% of the total land holdings, with exploration potential to increase the reserve base.
• The focus is on exploring within the existing 8-kilometer gold-bearing system and beyond, aiming to discover additional ounces.

Funding and Financial Strategy:

• The company's treasury increased by $277.4 million to $392.5 million, primarily from a private placement.
• The funds will be used for BFS activities, prepayment of the Barrick promissory note, and general corporate purposes.

Regulatory and Community Engagement:

• Federal permitting is complete, with state permitting for the tailings dam and water structures pending.
• The project has strong support from local Alaskan officials and Native Alaskan partners, facilitating a smooth regulatory process.

Sentiment Analysis:

Overall Tone: Positive

• Management emphasizes Donlin Gold's 'significant economic potential' with a $24B NPV at current gold prices, unique scale and grade, and robust treasury of $392.5M. Dr. Kaplan sees a 'long-term bull market' for gold and believes the company is 'on our way to $10, to $15, to $30' and beyond.

Q&A:

• Question from Francisco Bustamante (Scotiabank): Given that you've now awarded the engineering contract to the project, can we consider that the clock on the 12-18-month timeline to complete the BFS has now started?
  Response: Yes, the team is in place and Fluor is driving the study, with completion expected in roughly a year.

• Question from Francisco Bustamante (Scotiabank): I'm wondering if you see any read-throughs on the potential debt financing availability for a project that offers significant domestic investment in the U.S. such as Donlin?
  Response: Expect multiple financing sources including potential government (e.g., EXIM) and interest from Japan and South Korea, given the project's scale and strategic location.

• Question from Raj Ray (Desjardins Securities): Have you planned any 2026 exploration drill program or budget to test further targets? Or, is that a priority after the bankable feasibility study?
  Response: A modest exploration program is starting, focusing on reconnaissance work and evaluating targets within the 8-kilometer mineralized system and beyond.

• Question from Raj Ray (Desjardins Securities): Can you walk us through what’s left there on the permitting as a full state permitting checklist? What is in hand? What remains outstanding? How do we expect the receipt of those permits going forward?
  Response: Only the tailings dam and water retention structure permits remain outstanding at the state level; design packages are submitted, and approval is expected around the time the BFS concludes.

• Question from Eric (via webcast): Will the BFS include a closure and reclamation estimate, including long-term water treatment and post-closure monitoring assumptions?
  Response: Yes, closure and reclamation plans, including water treatment, are required by permitting and will be part of the BFS; funding is committed through a trust.

• Question from Gene (via webcast): Which upcoming milestone in this study do you believe will be most important in helping the market recognize the project’s underlying progress and value?
  Response: Finishing the feasibility study is the key milestone; along the way, evaluating third-party participation in the gas pipeline could be a catalyst.

• Question from Matt (via webcast): Could you comment on the recent movement in gold and how that relates to NovaGold?
  Response: Dr. Kaplan believes gold is in a long-term bull market, sees recent pullback as a buying opportunity, and is confident the company will unlock significant value from the Donlin project.

Contradiction Point 1

Tailings Dam Permit Timeline

Contradiction on when the final state permit will be received.

Raj Ray (Desjardins Securities) - Raj Ray (Desjardins Securities)

2026Q1: The only outstanding state permit...approval is expected around the time the BFS is completed. - Greg Lang(CEO)

What remains on the state permitting checklist and the expected timeline for obtaining the remaining permits? - Chris Gates (via line)

2025Q3: The company anticipates receiving these permits well before the BFS is complete. - Greg Lang(CEO)

Contradiction Point 2

Bankable Feasibility Study (BFS) Completion Timeline

Contradiction on the expected duration to complete the BFS.

Francisco Bustamante (Scotiabank) - Francisco Bustamante (Scotiabank)

2026Q1: The timeline has effectively started...the BFS to be completed in approximately give or take a year. - Greg Lang(CEO)

Does the 12–18-month timeline to complete the BFS officially start now that the engineering contract has been awarded? - Webcast Participant (via line)

2025Q3: BFS work will take 18–24 months, after which a construction decision will be made. - Greg Lang(CEO)

Contradiction Point 3

Priority and Budget Allocation for Exploration vs. Feasibility Study

Contradiction on the immediate priority and budget allocation between feasibility study and exploration activities.

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2026Q1: An exploration plan is being assembled...The focus is on evaluating the low-hanging fruit within the existing 8-kilometer gold system. - Greg Lang(CEO) and Dr. Thomas Kaplan(Chairman)

Is there a planned 2026 exploration drill program or budget to test additional targets, and will it be a priority after the BFS? - Sanderia Iyer (B. Riley Securities)

2025Q4: While the feasibility study is the immediate priority, exploration is a key future opportunity...Plans are being developed with the partner for future exploration... - Greg Lang(CEO)

Contradiction Point 4

Tailings Dam Design Finalization and Permitting Status

Contradiction on whether the tailings dam design is finalized and its position on the critical path.

Raj Ray (Desjardins Securities) - Raj Ray (Desjardins Securities)

2026Q1: The only outstanding state permit is for the tailings dam and water retention structures. Design packages have been submitted, and approval is expected around the time the BFS is completed. - Greg Lang(CEO)

What remains on the state permitting checklist and the expected timeline for obtaining the remaining permits? - Webcast Question

2025Q4: The tailings dam design is finalized and not at risk of material change. It is a state-of-the-art downstream rock construction...The design packages have been submitted to the state, and no changes are anticipated. - Greg Lang(CEO)

Contradiction Point 5

Valuation and Strategic Outlook for the Project

Contradiction on the strategic value and potential of the Donlin project.

Raj Ray (Desjardins Securities) - Raj Ray (Desjardins Securities)

2026Q1: The 95% unexplored land is considered prime real estate...The goal is to add tens of millions of ounces...The partnership...is expected to drive the share price back to all-time highs. - Dr. Thomas Kaplan(Chairman) and Gregory A. Lang(CEO)

Given the current resource is only 5% of the land package, is there a planned 2026 exploration drill program or budget to explore additional targets, or will it be prioritized post-BFS? - Michael Pustvoy (Texas Teachers)

2025Q2: The likelihood of another 40+ million-ounce occurrence nearby is considered very low, but the potential is high. - Thomas Scott Kaplan(Chairman)