Q1 2022 NovaGold Resources Inc Earnings Call
Thank you for standing by this is the conference operator.
Welcome to the Nova Cold first quarter 2022 financial results conference call and webcast.
As a reminder, all participants are in listen only mode and the conference is being recorded.
After the presentation, there will be an opportunity to ask questions via webcast only webcast viewers may submit questions through the text box in the lower right corner of the webcast frame.
Should you need assistance during the conference call you may signal, an operator by pressing star zero.
I would now like to turn the conference over to Melanie Hennessey, Vice President corporate Communications.
Please go ahead.
Okay.
Thank you Sherry and good morning, everyone. We are pleased that you've joined us for Nova goal 2022 first quarter financial results and also for an update on the Donlin Gold project on.
On today's call, we have Doctor Thomas Kaplan know, the Gold's Chairman, Greg Lang, <unk>, President and CEO , and David Ottawa, Nova Gold's, Vice President and CFO .
At the end of the webcast, we will take questions via.
The prompt as Reece mentioned earlier. Additionally, we will respond to questions received via email.
Okay.
I would like to remind our webcast our call participants that as stated on slide three any statements made today may contain forward looking information such as projections and goals, which are likely to involve risks detailed in our various Edgar and SEDAR filings and forward looking disclaimers that are included in this presentation.
I now have the pleasure of turning the presentation over to our president and CEO , Greg Lang Greg.
Thank you Melanie.
At the end of the first quarter, we reported final assay results and a joint release.
Relief with Donlin and Barrick.
2021 drill program was completed in late September .
With 79 holes totaling approximately 24000 meters.
As shown on slide five.
Okay Novo goal would agree that the 2021 drill campaign finished strongly with high grade intercepts and some of the best drove results for an open pit project industry wide.
Examples shown on this slide.
Crude <unk>.
7.8 grams over 92 meters.
For a great fitness of over 700.
Primary objective of the 2021 drill program was achieved by validating recent geologic modeling concept to support future feasibility work.
Data collection for geotechnical and Geo metallurgical purposes.
Testing for extensions of high grade zone.
And to identify 2022 drill targets.
As a result of the success in the 2021 drill program.
Graham was expanded into 2022.
Once the 2020 , one drill data has been incorporated into an updated resource model.
The owners will determine updated mining schedules and life of mine business plan prior to shifting to an updated feasibility study, which is of course subject to formal approval by the Donlin Gold LLC Board.
On slide six.
We have included a quote from Barrick recently published 2021 annual report on Donlin gold.
As a 50 50 joint venture ship.
We have great alignment on our efforts.
To advance the Donlin Gold project.
We opened the cap in January to prepare the site for the largest drove program in over 10 years.
With three rigs operating in approximately 70 people at the property.
These winter conditions were key to access areas.
That would otherwise be challenging and milder weather.
On slide seven.
You can see a longitudinal section of the asthma and Lewis deposits at Donlin.
In 2022, we will undertake approximately 34000 meters of technical and exploration drilling.
Both in pit and at depth as shown.
And the areas circles on this slide.
Well, we are focused on the drill program permitting and modeling work.
We have not lost sight.
One of the projects most important attribute.
That is the exploration potential.
As shown on slide eight.
The existing deposit is not only open laterally as relish at depth.
But its mineral resources are contained with only three kilometers of an eight kilometer mineralized belt.
Which is located on less than 5%.
Donlin Gold's total land package as highlighted in yellow and the lower diagram.
In 2022 proposed overall budget for Donlin gold, which is equally shared with Barrick.
$60 million.
<unk> question is 50%.
As shown on slide nine.
It is the largest project budget the partners have committed to and more than a decade.
Our focus will be on approximately 34000 meters planned technical and exploration drilling in pit and below pit.
Rig drilling for mineralization continuity and testing.
Geologic structural controls.
We will also support field work and permitting for the Alaska Dam safety certifications.
Environmental activities community and external affairs are ongoing.
We will also update the geologic modeling and interpretation work for an updated resource model and engineering activities for use in an updated project feasibility study.
No for Golar recently issued our 2021 annual report.
And we announced the launch of our sustainability report that.
That will be available later this month.
With a focus on our fiscal 2021 performance in the areas of environmental stewardship.
Health and safety.
Social engagement.
Corporate governance.
We have a deep commitment to environmental social and governance principles as shown on slide 10.
That has been our practice for decades.
This commitment extends to all levels of our company and to the Donlin Gold project.
For more information and to view these annual reports.
Okay.
Right.
On slide 11.
We highlight our first quarter community engagement initiatives.
Donlin gold has focused efforts on supporting local communities.
Funding and participating in health and safety initiatives.
Environmental management.
Training and education.
And cultural activities in the Y K region.
In collaboration with local stakeholders.
Donlin gold.
<unk> worked with fixed school district in the region as part of the National Dictionary project.
Provide a personal you pick dictionary.
All third graders.
Supplying nearly 5000 dictionaries over the last decade.
Donlin also sponsored iron dog days, and a new partnership with Velasquez safe riders to provide safety briefings.
In support vintage snowmobile races.
We partnered with PK see to deliver food to elders in the Yukon region.
We also funded the 2022 Kuskokwim ice road, a 270 mile Long road plowed. It maintained that has significantly improved safety and access to 17 nearby Waikiki region communities for residents and remote locations.
Felicia in Donlin gold in close coordination with Nobu bold and Barrick co lead our government relations efforts.
An important part of advancing the Donlin gold project through permitting and beyond.
As shown on slide 12.
During the first quarter.
Arista and Donlin gold continued their bipartisan outreach in Alaska, and Washington D. C to highlight the thoroughness, the project's environmental review and permitting processes.
<unk> the importance of responsible and much needed academic development in <unk> region.
And throughout Alaska.
Lashkars U S. Senators have also reaffirmed their long standing support for the Donlin Gold project.
The photo on the right is from an event is Anchorage Alaska.
Alaska Senator Lisa Murkowski.
Slide 13 provides a good summary of the Donlin gold project and attacks.
In terms of scale.
<unk> exploration potential and jurisdictional stability.
Donlin Gold's attribute far exceed any other gold development project globally.
When combined with our long standing Native Corporation partnerships, the X financial leverage to rising gold.
And an experienced management team and board.
Long term supportive shareholders.
And with key federal and state permits in hand.
Nova Gold is unparalleled.
Donlin gold scale is noteworthy.
At a time when companies desperate to replace their depleting resources have debenture into increasingly risky geopolitical front peers with uncertain physical and financial security for their investment.
Donlin gold was approximately 39 million ounces of gold and measured and indicated resources.
Is ideally positioned to.
Deliver long term benefits with a mine life that is already measured in decades and has the potential to grow.
When compared to the next 14 largest gold development project in the Americas as shown on slide 14.
Donlin gold is five times greater than the average.
Currently envisioned the Donlin gold project would average over a million ounces a year for the life of the mine as shown on slide 15.
Projects annual production profile is more than triple the average north and South American peers.
While global gold production continuing to decrease for most of the top 20 producers.
It is clear the industry data projects.
Scale grade and longevity to sustain and outperform through multiple gold cycle.
Yeah.
Okay.
The scale of Donlin gold combined with its grade at two in a quarter grams as shown on slide 16.
Is twice the industry average grade for an open pit project.
Looking at jurisdiction on a global scale.
We can see that the mineral potential category only three mining operation produced more than 1 million ounces in 2020 as shown on slide 17.
For political and social stability.
We can see that based on the Fraser Institute rankings.
<unk> is in the low risk category and go.
The top five largest development stage projects.
Our in dark blue.
Three of these you're in North America.
If you combine all three they are still smaller than donlin.
And the others are in more challenging jurisdictions.
Comparing mines.
Production or those in development.
Donlin gold ranked among the top assets globally.
We are most fortunate.
You have as partners, the Alaska Native land owners to Arista and Teekay Ste.
Who are committed as we are to develop a mining operation consistent with the elders vision of response, both development that creates jobs and economic benefits.
All the while safeguarding the environment and culture.
As person supportive comments on slide 18.
Regarding <unk> gold project is on privately land.
Strictly selected for its mineral development potential under the 1971, Alaska Native say claims settlement Act.
This is a key distinguishing factor.
Factor for most other mining assets in Alaska and the U S.
The Donlin gold team chairlift.
And TK Ste.
As well as other key representatives of the communities.
Work together to achieve these goals with the ultimate objective.
Of ensuring sustainable and profitable project development.
We are thankful for their long term support and commitment to the project.
We believe noble golf's, 50% ownership in this unique asset with the combination of scale.
Polity longevity.
Leverage to gold price exploration.
<unk> potential and key partnerships.
Clearly constitutes especial investment opportunity for our broad community stakeholders and shareholders.
With that I.
I will now turn the call over to our CFO , David Auto well to review the 2022 first quarter financial results.
Dave.
Thank you Greg.
Slide 20 highlights our first quarter operating performance.
We reported a net loss of $10 million in the quarter or two.
2 million dollar increase due to the earlier start to the Donlin gold drilling program this year.
Other income expense includes an increase in the fair value of marketable securities and favorable foreign exchange movements.
Actually offset by the lower accretion income due to the maturity of the $75 million.
So there are known Newmont note in July last year.
First quarter cash flows are highlighted on slide 21.
Cash and cash equivalents decreased by $14 million, primarily to fund our share of Donlin gold and for corporate administrative expenses.
The increase in cash used in the first quarter of 2022 compared to 2021 was again due to that earlier start to this year's drilling program.
<unk>, a corporate liability insurance payments and higher withholding tax on share based compensation.
On slide 22, we can note our strong treasury.
Our financial position includes cash and cash equivalents of $77 million.
Term deposits of $78 million and $25 million due from newmont in 2023.
For the full year, we continue to anticipate spending 46 million, including $30 million of Donlin.
$13 million for corporate G&A.
And $3 million for withholding taxes on share based compensation and working capital.
I will now turn the presentation over to Dr. Thomas Kaplan.
Yeah.
Thank you very much Dave.
Okay.
I will go into my remarks by beginning with a very simple statement, which is that gold is in a bull market.
All roads lead to gold.
A micro standpoint.
The supply demand equation as well as from a political and Geo strategic standpoint, as well I think we are getting to the point where.
The performance of gold is going to elicit a great deal more interest.
In the metals and it's getting a lot harder to find it on every level, but if people want me to spend more time on the gold's commentary by all means.
Let Melanie no and I'm happy to oblige, what I'd like to focus on primarily is the investor case for.
Donlin on Slide 24, what you see is a compilation of a number of factors, which.
Together render the donlin asset.
To be unique it is by any classification, a tier one asset but it is also located in a tier one jurisdiction I've been harping on the story of jurisdictional risk for many years.
Think that I don't have to dwell too much on the global situation all across the world not only in the developing world, but also in the developed world itself to suggest that the existential factor for not just mining investors any longer but <unk>.
<unk> in general is being in the right place in the same way as <unk>.
The concept is that the existential question for investors is in which currency. They denominate themselves I think it's now become very clear that you want to be in a place.
<unk> is not.
Not subjected.
To a great deal of stresses.
And where from Euro stress level. When you go to sleep at night, you know that when you wake up in the morning, what you thought you owned you still own.
Now super impose that on to the asset that donlin represents itself you've heard.
Greg.
Very very strong case being made for donlin being the greatest development stage asset in the world today.
I believe that that's the case I believe that.
When people do say why do you.
Wax lyrical about Donlin I say, because it has all of the attributes which in combination render it unique.
Unique the size 39 million ounces in the measured and indicated mineral resource category, which clearly much more to go the exploration potential we often referred to it as being.
A situation, where there was 39 million ounces and I'm not even talking about those that are inferred adjacent.
To the pit nor those that we hope to be able to find.
Find to depth.
But the exploration potential of the donlin renders it.
Really the new Nevada.
Or is the new Carlin.
But we always say that it's only 5% explored and that's the eight kilometers.
That we know about of which the reserves only come from three kilometers another way to look at it is at 95%.
Unexplored.
That is extraordinary and the people should ask the question why that is and it's very much a function I believe of the history of this asset, particularly the Arab before we came into the picture.
And Barrick and <unk> had their struggle I think that if barrick had won the control over the entirety of the asset.
It's probably fair to say that they would have had 10 drill rigs on this thing maybe up to the price of the day I think the reserves would be a multiple of what they are but more than that I also believe and this is a forward looking statement don't attach any more value to that other than the fact that I have.
<unk> made my fortunes through the drill bit I do believe that the next donlin is at Donlin.
As some within our group who speak about it.
On strike.
And there are others, who see the lower hanging fruit to depth or in the gap area. Whatever it is we're talking about an asset that continues to deliver and it's not an accident that our friends at Barrick in their annual report.
Noted that the results, which we had on this latest drill program, where some of the best results for an open pit property.
For any development stage gold asset in the World in fact.
And he developed gold asset in the World Donlin as it gets to keeps on giving the grade.
Is already double that which the industry is looking to mine.
And it's possible that in the earlier years.
The rate will be meaningfully higher than that.
So we've got the size in other words the scale, we have the quality we have the blue sky exploration potential that is so valuable for investors.
When April market is underway the jurisdiction.
Is second to none we are in the second largest gold producing state of the safest jurisdiction in the world.
A state that is welcome for mining and where we enjoy partnerships at the state level at the level of our Native Corporation partners not to mention of course, our industry partner Barrick and also from the U S. Federal government you heard from Greg that the relations or extra.
Alan.
And we are a federally permitted project on <unk>.
Land, which.
Was designated for mining on private property, it really doesn't get better than that so from an asset standpoint, you have everything that someone could look for if they want octane in their portfolio from a development stage asset now on page 25, we talk about the other aspect is that.
Is so important it's one thing to have a great asset, but you want to make sure that it's in a safe pair of hands that the stewardship is what youre looking for the track record of local management team. The one that took over a decade ago.
Has really been stellar.
When Greg came into the story I came in as chairman at the same time as he came in as CEO . We went out on our road show.
Were still living off the fruit of that offering that we did.
A decade ago plus.
Following through on our promise to be able to monetize galore.
Galore Creek, and a very positive way and by the way I really need to add that at the recent BMO conference.
Don Lindsay went out of his way to say how much tech loves.
The lower and look forward to it.
<unk> built should that happen in that eventuality potentially we would get another $75 million if they make the construction decision all good news for our shareholders, but Meanwhile, those who have invested in trilogy, or those who got it as a dividend.
We have seen that company.
Developed real value in the marketplace and has allowed us to be able to focus as a pure play on donlin asset and we believe that that has enormous enormous ramifications for our stock performance going forward.
Yeah.
Between the combination of factors, which make them in such a great asset in the jurisdictional stability, which is increasingly important on a daily basis in today's world.
We think that being able to be a pure play on the new Nevada with a new Carlin.
However, you want to term it.
Makes it really one of the greatest ways to play gold in today's world.
We're aligned with our strategy on taking donlin up the value chain with our partner Barrick with whom Nova Gold has a 14 year history.
Our focus on the geology and.
The mine plan, which we expect will lead to a refreshing of the feasibility study all of this is moving us in the right direction and of course, we have the largest drill program in the history of the project, which is taking place now which as.
As Mark Bristow referenced in his own remarks on Donlin are meant to be able to primarily test upside scenarios as well as giving us the finishing touches on the geotechnical aspects that go into the mine plan.
The culture that we have.
In focusing not just on maximizing shareholder value.
Is only part and parcel of a culture of respect not just for our shareholders, but between Nova gold Donlin and our local stakeholders, our greatest supporters or the native corporations.
Who are with us with skin in the game.
<unk> from the surface as well as the mineral rights.
The development of Donlin is going to be a cutting edge in terms of ESG.
The employment the scholarships to workforce development and environmental programs in the region that we're already funding.
Are going to only be accentuated by being able to bring the development to what is really one of the poorest parts of the United States. It's another wonder that we have the support at the local level at the state level and at the federal level for this game changing project.
What does that mean in terms of the status quo for our investors. If you look on slide 26, when you combine the quality of the asset its jurisdictional safety.
The management culture of respect for its shareholders as well as local and industrial partners you see that we are poised for what we expect will be an enormous uplift that comes from the value that we will get by being so highly leveraged.
The higher gold prices, what you see here is that the project returns increased substantially with higher gold prices.
And the mine life already measured in decades is really only going to go higher with more drilling, but what I would accentuate here is that it is our considered opinion that the history of.
Of this period when it's written in terms of those projects that will give the highest value to investors is those which are in jurisdictions, where the implied interest rate will be the lowest and that's where political risk comes into the story.
It used to be before.
<unk>.
And to go to where the gold is mentality took hold in the gold space in the early 19 nineties.
Lois.
The risk premium attached was two U S assets, which will then in turn arbitrage with what within the risky assets Canada.
Canada.
Australia, and South Africa, obviously, the world changed and we've seen people go through all areas of Latin America.
Africa Asia etcetera.
I believe that for a whole host of reasons, what we're going to see is that.
We're going to go back to the future, which is to say that the highest rated assets will be those which are in.
Places like Nevada, Australia and of course.
Alaska.
So with that going to slide 27.
I think it is not surprising.
We have enjoyed strong institutional shareholder.
And management support the 10 largest shareholders represent nearly 65% of our issued and outstanding.
Shares are executive officers ownership has increased to $2 8 million shares since they've joined.
The company, it's not just that we have a strong shareholder base, we have an incredibly smart shareholder base.
They're educated consumers as such they are our best customers. They know that we've kept pace with them that every promise that the company has made with delivered upon they note that the Nova cold.
Asset our 50% share of Donlin.
Has been a gift that keeps on giving as we've seen from every press release.
About the the drill results and the progress with our partners at Barrick, we are incredibly grateful.
To having some of the smartest why is this shareholders on our shareholder roster and also for being there for us when we see.
Their counsel.
Our shareholders know that if they want to speak too Greg or Melanie <unk>.
They're there in a heartbeat you don't have to make.
Our long term appointment and the same applies to me.
M <unk>.
As our friends at Fidelity would say the owner who lives above the store.
I'm the chairman of this company for very simple reason I enjoy it I love working with this team.
I love being able to talk about this asset because I know that when we look back upon this euro.
The donlin asset will be seen as being.
The Holy Grail.
And when we get into that year end.
John Polson refers to as gold fever.
I think that it won't be a surprise that we.
We will be one of the very best performing.
Equities in the gold space, we've got that combination of scale Blue Sky mine life, Great management.
Low cost structure.
And jurisdictional safety that is going to make us the go to stock in the gold development space.
And as such I am.
Looking forward to sharing that joy as the largest shareholder with all of you going forward so with that I. Thank our shareholders I think those.
Who follow our company and I think our management and board of directors for being so supportive.
You again.
Hi, sorry for you are you on the line.
The virtual can queue up for questions via the right path.
Absolutely.
We will now begin the question answer session.
Webcast viewers may send me a question through the tech path in the lower right corner of the webcast frame.
Okay.
Thank you sure if we have our first question coming from the line of months apart from RBC.
And that one is for Greg are you able to provide them and go through that catch all for one prior to the lease expiration result, other project updates this year and when we talk we updated resource model could be completed.
All right well I'll I'll first speak to the exploration results.
Drilling got started early in January and its been growing going great.
We ship the first.
Core off to the assay labs.
Last year actually turnarounds were firm a slow we think we've put some measures in place that will speed that up and.
And we typically release.
When we've got a meaningful amount last year, we did three joint relations on the drilling this year the program is a bit larger.
So I think we'll probably end up doing for releases and I would anticipate the first release sometime in towards the end of May and at that time. We will also provide an update on the other activities going on its projects.
Great. Thank you Greg we also have a second question coming from the line of Trevor Turnbull Scotiabank.
Who asked I noticed recently reached an agreement with Pakistan for the potential development of the <unk> project are there any read throughs for donlin, giving back demonstrated interest in large scale projects such as that.
Okay.
Let me start well, let's set aside.
Any view on jurisdictional risk I think I certainly liked working up in Alaska.
Buy side comparisons are somewhat difficult because record deck is primarily a copper deposit and donlin gold.
An equivalent basis.
At Donlin is substantially higher record, yet, but I think.
More than anything else.
Really demonstrates that the industry needs large scale projects like donlin are like record <expletive> to sustain themselves I think that's what.
Really positions <unk>, well large scale projects.
Our strategic significance to major mining companies, regardless of where they happen to be.
Okay. Thank you Greg we have one more question coming from R&D.
Charcoal given the time and investment that will be required to bring donlin commercial production for Barak indicated any interest in buying that novel accepted this program in order to goal.
Our operational control of this asset.
Rate development.
Okay.
Yes, that's obviously.
Question that.
Thoughts would be inappropriate and right now we're focused on working with our partners to execute this year's field program, which I think will be.
An exciting year for us, particularly I look forward to what we learned by drilling at depth at Donlin.
All I appreciate the vast potential there.
Nothing like deep drill holes to.
And give us additional insight there.
We have another question coming in from Lucas pipes.
B Riley.
What Tom what are the implications of the war in Ukraine and related government responses, such as sanctions on personal Bancorp, Inc.
Well there are two parts to that.
From the standpoint of the war in Ukraine.
I think that it's very clear.
That <unk>.
<unk> risk.
Has gone from being an incremental arithmetic.
The equation too.
Exponential.
I think that any investor.
Not just in the mining space any longer.
Who does not tried to factor in jurisdictional risks in their investments.
<unk> has the potential to be.
<unk>.
In terms of that investment.
The fact that.
Even the subject of nuclear war is raised shows that the prospects of annihilation and no longer limited to the investment space.
And I would think that people should probably be spending more time about the geopolitical implications of what it means to see WOR in massacres.
In Europe .
It's no longer just something that people can turn a blind eye to.
Because it's located in Alabama like Syria.
Or in.
Afghanistan and.
Timbuktu et cetera, et cetera, it's now everywhere.
And we have to factor that into the equation.
Mining of course.
He is.
It's objected to that aspect of investment principle.
In an almost steroidal way because you cannot move.
Whatever you are wherever you are is who you are.
But we're finding that this is no longer restricted to mining or look at the western companies that are essentially.
<unk> had to abandon asset.
In Russia in order to be able to comply with the rules in their home countries or in <unk>.
Most of the Western World if not.
Most of the world in general.
Now I imagine.
If and I hope it won't happen and perhaps the fiasco and Ukraine, Thus far will act as a deterrent.
And any.
Intemperate Chinese ambitions, but what happens if we see an economic war.
With China escalate Theres, a lot of foreign investment in China and of course, the implications of China as a.
As a financial power as a buyer of commodities et cetera.
So political risk has gone up exponentially over the last five or six weeks.
There is nothing which is off the table and the fact that the Russians thought they're harder that half of their.
Reserves were effectively sanitized.
We are.
D sanitized.
In with the stroke of a pen is going to have a lot of people thinking about.
Their assets.
Sadly we're not.
Looking at it from a very neutral standpoint, one of the assets that the Russians do have that.
Is not someone else's.
The liability.
Is gold.
And as we note bolt.
The purchases by the Russians were very very intelligently made.
And Russians and are buying gold hand over fist.
In their citizenry the central Bank one of the first actions of Central Bank took after the sanctions were imposed was to go back into the gold market as a buyer when they saw that they were competing with their local citizens. They stepped away from that but the importance of gold has only gone up as a consequence of that.
Yes.
New.
Global disorder.
I think that it will not be lost on the Chinese Zen at.
The value of gold is that much higher being that they are so so.
Tied to the U S Treasury market, just simply because of the volume of their of their holdings in non renminbi assets.
No doubt in my mind that the.
The Chinese or of course, the world's largest gold producer are going to not only continue to buy all their local production, but will continue to be large buyers in the world as they try to convert one dollar assets into gold.
Russia of course is one of the largest producers and I think it's very clear that they're not going to let gold.
Leave the country unless they're monetizing it in order to stave off other economic issues in which case. My guess is that there are a number of central banks.
Which would be more than willing to loan money to Russia, collateralized and gold if not by the bold outright.
Assuming that the Russians would be willing to do that.
But I think that they've seen only positive reinforcement.
From gold and that is.
An aspect of life.
Which is only going to accelerate.
The.
The momentum that gold has when it definitively goes through the two thousands area and people start to try to attach valuations to equip the same kind of will pick the number that they have with so many other.
Asset, including crypto.
When gold fever hit.
<unk>.
It's very likely to go into.
A whole new universe.
I'm sorry to see that.
I've always said that I felt that from a supply demand standpoint, falling grades et cetera, et cetera scarcity of resources, there aren't that many things out there like donlin, which can produce a million ounces.
Not to mention add millions of ounces of what is high grade for an open pit gold. So when you look at that I've always felt $3 to 5000 for gold is a reasonable equilibrium level.
People say well why.
One three and 5000.
That's a wide range.
When markets like this start to move you can see that as being a two or three day trading range.
It then volatility I think is here to stay in pretty much everything.
So for all of those reasons.
I think we're going to see a lot more people gravitating towards wanting to have some gold in their portfolio at a time when they'll be competing with governments.
And.
The mining companies not being able to deliver.
The gold, which they used to.
Call me bullish.
I hope that helps.
Thank you we have one final question coming in from.
<unk> <unk> from RBC.
Sure.
<unk> is the first time on gold.
For the Doctor Papa.
Microglia interested to hear your thought on gold in the context of all crude preparation of outgrowing central bankers or nickel commodity box somewhere to the currency.
And then also would you see that scenario is an opportunity for outsized returns.
Our our rep <expletive> ownership irrespective of our controlled or further faster.
Well you know [laughter].
It's an excellent question.
I have no doubt.
That.
We are undergoing a major reexamination.
Of what constitutes money.
And obviously for years.
I've said that I want to be able to have exposure to an asset that.
Isn't someone else's liability and for me that represent the gold.
And it still does Goldman silver now.
For some people.
They look at crypto as being.
So to point out.
And I have said and written in last year's annual report that I believe that the whole crypto narrative.
Is extremely bullish for gold and I think we're now starting to see people looking at.
Crypto and looking at gold.
And seeing that they like what they see with gold as well.
The most important aspect is that the crypto narrative and the way in which central banks are now looking at digital coins et cetera is absolutely the victory of the bold narrative that gold Bulls have been espousing.
You say you want to be able to have access to.
A form of money that cannot be.
Printed.
By Fiat.
The last decade has pretty much shown that we are in such unchartered waters in terms of what central bank deal that they need to do in order to keep the global economy propped up that all the rules have been broken now some of that clearly benefits.
Certain cryptocurrencies. It's also benefited gold I think the goal will certainly be one of the ultimate beneficiaries and as I don't know.
Each of the Cryptos will actually survive.
Think of all the airplane companies that no longer exist.
Our companies for that matter.
I don't know which of the Cryptos will survive because there's such a multiplicity of them and who knows what government will do in order to.
Influence.
Those markets as well as to favor.
The vehicles that they're propounding, but one thing I know.
There's only one gold.
And I don't have to worry about choosing.
What kind of gold I want if I believe that gold will be part of everyone's allocation.
In terms of wanting to be able to have alternative currencies to what we would call paper currencies, even if it's really digital now anyway.
That's extremely important because when you say crypto you can mean, many many things and I don't know, which ones will turn out to be winners or losers not speculating.
I do know that when someone says well I think I want to add some gold there is only one kind of gold and then if they want to get.
More leverage then they start to look at things like mining companies et cetera, and I do believe that.
When your brokers.
Or the brokerage or any of the analysts who are on this call.
Our going out and talking to investors and they say we've got a great gold story to look at investing is going to say Wow.
Perfect timing.
Yes, it's a mining company, it's got a great asset.
And you know an excellent management team with a track record of keeping their promises et cetera, I do believe that in the not too distant future.
<unk> already happening when youre, starting to see the valuations being given to countries in safe places I really do believe that.
One of the first questions that will be asked of the brokers is dead.
You say you have a great company with great assets and Great management team.
One question before we continue.
Where in the world is it.
Because if it's in a place where I wouldn't be willing to visit it.
Certainly not take my wife and kids.
Then.
It may not be for me for a lot of reasons a lot of ESG things come into play then of course, you have insurgencies you have resource nationalism, we're seeing that.
Even what were considered to be the best in breed countries in Latin America like Chile.
So I think what youre going to see is it is a new form of discrimination whereby investors say give me a great asset with great management located in safe place that if I want to go gambling in Vegas.
You know I can go visit the property if I want to go.
To the great barrier reef and go Snorkelling I can go visit the property if I want to go whale watching or salmon fishing in Alaska can go visit the property with a sense that.
At least it's comfortable at least I'm not going to run afoul of my investment Committee when something untoward happens in.
In those countries and the investment Committee says why did you do that why didn't you just go with something that.
Safer you know if anything ultimately because there are so few vehicles that provide you with the kind of leverage to gold in.
In jurisdictions that will allow you to keep the fruits of that leverage.
Like the Donlin.
We're like in Nevada for example.
Those things are going to achieve.
Sure Denary Valley.
Valuations the multiples that will be attached to them.
Will be it.
We will be the product of them being special situations people will pay.
A premium for those companies, which will not embarrass him.
That is my strong belief and again I made my bones.
In South America.
And then in Africa.
And before coming back to North America.
You know I I'm.
I'm talking my own book for one reason.
I I wrote chapters in that go.
Go to where the gold is frontier mentality.
And I skipped to the last chapter in the book.
And I saw it wasn't a happy ending.
And so I decided to go back to those first principles and I got Lucky.
Because at that time people weren't looking at North American assets.
If anything they were seeing.
Should put a premium on assets in other places where permitting is.
Here in Twister, well you know that.
It's a judgment call I would rather spend years and years and years permitting something but at the end of the day know that once permitted I own it and I can continue to own it.
That's what I'm all about as a long term investor who is the fiduciary for his family.
But if youre looking at.
Assets in the gold space.
I think that you.
Your brokers are going to want to be able to say oh and by the way it's been a safe space.
So I.
I hope that helps you I've tried to give the the macro environment is so bullish for gold because I think a lot of countries, we want to be able to say that they have more gold backing I think that the Chinese will probably reveal themselves.
To be holders of much much more an official reserves.
Then they reveal and it's not that their line. It's just that they put it into different pockets that allowed them to be able to have those reserves elsewhere. Once they announce what could very well be greater.
Gold reserves in the United States has it becomes yet another part of their effort to undermine the most potent aspect of American power, which has only been.
Reinforced in the last two months, which is the.
The.
The U S dollar being.
The world's reserve currency foreign disproportion.
Two the representation that the dollar has as they are.
Trading tool.
Hope that helps.
Great. Thank you I will now turn the call back over.
Congrats on a room for a couple of remarks.
We have a great. Thank you it was a good call. We appreciate your interest and that you took the time to join US This morning to get an update on the company.
Stacey.
This concludes today's conference call you.
You may disconnect your lines.
Thank you for participating and have a pleasant day.
Okay.
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Yes.