Novagold Resources Q3 2026 Earnings Call Transcript

On Thursday, Novagold Resources (AMEX: NG ) discussed third-quarter financial results during its earnings call. The full transcript is provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

-domiciled parent company, New Novagold Resources, which will be listed on the NYSE. S. with significant annual production. The company reported a third-quarter net loss of $36 million, primarily due to increased expenditures on the Donlin Gold Bankable Feasibility Study and higher G&A expenses.

4 million, and the company is well-funded to complete the feasibility study by 2027. Strategic initiatives include engaging with local communities, advancing permitting processes, and scaling internal capacity to support project milestones. Management remains optimistic about the gold market's future and the potential value creation from the Donlin Gold Project, which they believe is positioned well within the global gold sector. Full Transcript OPERATOR Thank you for standing by.

This is the conference operator. Please go ahead. Mélanie Hennessey, Vice President, Corporate Communications Good morning everyone. We are pleased that you have joined us for Novagold Resources' 2026 third quarter webcast and conference call and for an update on the Donlin Gold Project.

On today's call we have Novagold Resources' Chairman, Dr. Thomas Kaplan, President and CEO Greg Lang, and Peter Adamek, Novagold Resources' Vice President and CFO. At the end of the webcast we will take questions by phone. Additionally, we will respond to questions received by email.

Please note that while we provide commentary on our pending transaction to acquire 100% of Donlin Gold during the prepared remarks portion of today's call, we will not be addressing any questions or providing further comments regarding the transaction during the Q&A portion of the call. com. As stated on Slide 3, any statements made today may contain forward-looking information such as projections and goals which are likely to involve risk detailed in our various SEC and SEDAR filings and the forward-looking disclaimers included in this presentation. With that, I will now turn the presentation over to Novagold Resources' President and CEO, Greg Lang.

Greg Lang, President and CEO Thank you, Mélanie. S. gold developer through a series of definitive agreements entered into on July 21st. -domiciled parent company, New Novagold Resources, will be established and listed on the New York Stock Exchange.

This will be done with a one-to-one share exchange. Dr. Thomas Kaplan, our current Chair, and John Paulson will become co-chairs of New Novagold Resources. 99%.

Once closed, New Novagold Resources will become the ultimate parent company, acquiring Paulson's 40% interest in an all-share transaction and will then own 100% of Donlin. This transaction requires two-thirds shareholder approval along with other court, regulatory, listing, and customary closing conditions. The meeting of special shareholders is scheduled for November 3, 2026 and the voting deadline is October 30th, with closing expected by the end of the year.

This transaction gives shareholders equity in a well-capitalized developer with ownership of the strategic asset projected to be the largest single gold mine in the United States, with an anticipated market capitalization of about $5 billion. The transaction is expected to deliver immediate benefits to stakeholders by increasing net asset value, gold reserves, and resources per share. Specifically, it adds approximately 16 million ounces of measured and indicated resources, including 13 million ounces in proven and probable reserves, and this boosts the attributable annual production by over 520,000 ounces during the first decade.

Beyond the numbers, consolidating ownership under one parent company streamlines corporate decision-making and improves capital efficiency while maintaining independent governance through specific voting and lock-up restrictions. The structure also creates a single point of contact for our key stakeholders including landowners Calista Corporation and The Kuskokwim Corporation. 1 million ounces per year over its 27-year mine life, comparing very favorably when looking at some of America's largest gold companies like Agnico Eagle, Equinox, and others that are listed on the chart.

As mentioned earlier, once the transaction closes, the company is expected to have a market capitalization of approximately $5 billion, placing it among some of the largest gold companies in the industry. As shown on Slide 8, this transaction is immediately accretive to Novagold Resources shareholders across key share metrics including NAV per share and gold resources per share. In our view, having John Paulson and Dr. Thomas Kaplan serve as co-chairs following the close of this transaction will provide Novagold Resources with a uniquely aligned and experienced leadership team as the company advances Donlin Gold and considers opportunities to fund its future development.

As shown on Slide 10, Mr. Paulson brings a distinguished track record as a gold investor, including his long-standing commitment to Novagold Resources and his experience in identifying and investing in high-quality, differentiated gold assets. Combined with Dr. Kaplan's deep knowledge of Donlin Gold and long-standing leadership of Novagold Resources, their shared conviction, complementary expertise, market reach, and alignment with shareholders should position the company to advance the project efficiently and maximize long-term shareholder value.

On Slide 11, we show Novagold Resources' share price movement over the last two years. The strategic alignment between Novagold Resources and Paulson has helped reignite investor confidence and share price momentum, reflecting the market's growing recognition of Donlin Gold's value and the potential benefits of a more streamlined ownership and development structure. As shown on Slide 12, Donlin Gold continued to extensively engage with government and regional stakeholders while supporting local programs across the Y-K region.

During the third quarter, we coordinated with Calista to conduct a series of village visits, including a dedicated community meeting in Crooked Creek, the closest village to the project, to provide general updates and discuss the subsistence plan. Additionally, we facilitated several key initiatives for the Subsistence Community Advisory Committee, including meetings on communication plans and a tour of the Red Dog Mine. On the infrastructure front, we are advancing our planning along the proposed pipeline corridor.

We've initiated outreach to over 190 individuals and entities in the region while coordinating closely with legislators in neighboring boroughs, engaging with key decision-makers at the state and local levels, including recently holding briefings with Senator Dan Sullivan and collaborating with the DOE on permitting and infrastructure. Donlin's ongoing support of rural activities through Excel Alaska and health and safety initiatives provide key touch points in the region. Lastly, environmental stewardship remains a core priority.

We completed the 2026 George River Salmon Monitoring Program in coordination with the Native Village of Napaimute, sampling over 7,000 fish, and we continued biodiversity monitoring at Snow Gulch to further strengthen our environmental baseline data. Turning to Slide 13, several workstreams on the technical front continue to advance. The Bankable Feasibility Study remains on track for completion in 2027. A team led by Fluor is currently integrating major work packages and coordinating with specialist contractors including WSP, Worley, and Hatch.

Geotechnical work is wrapping up this fall at key sites including the Jungjuk Port and the access road corridor, while resource modeling and mine planning are progressing as planned toward a high-quality Bankable Feasibility Study. We are also scaling our internal capacity to support these technical and operational milestones. Since the start of 2026, we have more than doubled our team from 35 to over 70 employees across Anchorage and Vancouver, and we continue to recruit for critical roles as the project advances toward a final investment decision.

As shown on Slide 14, in the third quarter we announced the appointment of Endeavour Financial and Macquarie Capital as financial advisors. They will help us evaluate various funding alternatives ranging from conventional project finance to potential support from sovereign wealth funds, ensuring that our financing strategy is executed in tandem with the Bankable Feasibility Study to preserve long-term shareholder value. I will now turn the presentation over to Novagold Resources' Vice President and Chief Financial Officer, Peter Adamek. Peter Adamek, Vice President and Chief Financial Officer Thank you, Greg.

08 per share. 4 million from the comparable prior year period, primarily due to higher Donlin Gold expenditures as a result of ongoing Bankable Feasibility Study activities and higher Novagold Resources G&A expenses, partially offset by higher interest income in the current year. 6 million higher than the comparative prior year period due to ongoing 2026 activities by Fluor, WSP, Worley, and Hatch to advance Donlin Gold's Bankable Feasibility Study. 7 million from the comparable prior year period, primarily due to higher ongoing legal and professional fees related to the proposed transaction to acquire 100% of Donlin Gold announced on July 22, 2026.

Legal and professional fees are expected to remain elevated for the balance of fiscal 2026 and into early 2027 until we complete the previously announced transaction. 2 million in proceeds from the sale of marketable securities. 7 million compared to the prior year, for reasons discussed on the previous slide. 4 million.

Novagold Resources is well funded, enabling us to complete the Donlin Gold Bankable Feasibility Study in 2027, exercise our option to prepay the Barrick promissory note during the current quarter, and cover our corporate G&A costs for at least the next 12 months. As noted earlier, our legal and professional fees have been elevated in 2026 and are expected to remain elevated for the balance of the year and into early 2027 until we complete the previously announced transaction. 2 million to support the completion of the transaction to acquire 100% of Donlin Gold. I will now turn the presentation over to Greg to discuss the third quarter highlights.

Greg Lang, President and CEO Thank you, Peter. It's worth reflecting on the value created through the company's long-term commitment to advancing the Donlin Gold Project over the past two decades. Extensive drilling and exploration programs have significantly increased Donlin's reserves and resources. The company successfully advanced permitting for the Donlin Gold Project, representing an important step in its development.

In June 2025, Novagold Resources and Paulson jointly acquired Barrick's 50% interest in Donlin, increasing Novagold Resources' ownership to 60% and Paulson's to 40%. Looking even further back, a key milestone occurred in 2008 and 2010 when Electrum and Paulson became major shareholders of Novagold Resources. That commitment has continued through recent announcements to consolidate Paulson's remaining interest in Donlin, bringing Novagold Resources' ownership to 100%. These events, combined with the project's attributes of scale, grade, location, and production profile, underpin the value creation and an incredible investment opportunity.

Many of our shareholders view Novagold Resources as an unexpiring warrant on an ounce of gold. On slide 21, the bar chart illustrates the post-tax net present value at various gold prices, both on the current ownership basis and a pro forma basis following the proposed consolidation. With gold prices above $4,000 an ounce, this reflects a value of over $50 billion at a 0% discount rate, or approximately $20 billion at a 5% discount rate. This projection underscores the substantial economic potential of the Donlin Gold Project in the current market environment.

3 million ounces annually in the first 10 years of production and over 1 million ounces of gold annually over its 27-year mine life. Looking at slide 23, Donlin Gold hosts approximately 40 million ounces of measured and indicated resources at an average grade of about two and a quarter grams per tonne. This is more than twice the industry average. The project's exceptional scale, strong grade, and long mine life provide a robust foundation for value creation and position Donlin to remain resilient across a wide range of gold price environments.

Moving to slide 24, we believe there are significant exploration opportunities beyond the current resources in the Acma and Lewis pits, as illustrated in the graphic in the upper right-hand corner, which covers approximately 3 kilometers of the 8-kilometer gold-bearing trend, representing just a small portion of our overall land package. This underscores the potential to add ounces and extend the mine life through further exploration. As slide 10 outlines, Donlin Gold's current permitting status and the advantages of its location in Alaska.

With a well-established regulatory framework and supportive approach to responsible resource development, collaboration with state and federal agencies remains constructive. At the state level, we continue to support Alaska in defending the Clean Water Act Section 404 certification, with a decision anticipated within the coming year following oral arguments which were made on June 3 this year. At the federal level, the Army Corps of Engineers and the Bureau of Land Management published the Supplemental Environmental Impact Statement on September 23rd of this year, analyzing a larger theoretical tailings release.

All permits remain in place, with public comments open through October 23rd and the final EIS anticipated in April 2027. Dam safety permitting also advanced as expected, with detailed design packages for the project's seven dams anticipated by the end of the year or early '27, and the issuance of dam safety certificates is expected in 2028. On slide 26, we highlight a quote from Governor Mike Dunleavy, who's expressed strong backing for responsible resource development in Alaska, including the Donlin Gold Project. We appreciate his advocacy and look forward to continuing open and constructive communications with him and his team.

Turning to slide 27, we highlight our long-standing collaboration and ongoing engagement with Calista and TKC, whose roles as private landowners are integral to the success of Donlin Gold. Their shared commitment to responsible development, grounded in deep local knowledge and stewardship, supports job creation, long-term economic opportunities, and the preservation of cultural heritage across the YK region. Novagold Resources is supported by a seasoned management team, as shown on slide 28, with a proven track record of mine development across the Americas.

Our team is complemented by the Donlin Gold Project execution team, including Frank Arquese, and supported leading contractors including Fluor, WSP, Worley, and Hatch. Together they bring deep technical and project execution expertise to advance Donlin Gold efficiently, responsibly, and with a strong focus on execution discipline.