Q3 2023 NovaGold Resources Inc Earnings Call
Two they never called Tony twenty-three third quarter 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 to join the question queue. You May Press Star then one on your telephone keypad.
Should you need assistance during the conference call you May signal, an operator by pressing star zero webcast viewers may submit questions through the text box in the lower right corner of the webcast frame.
I would now like to turn the conference over to Melanie Hennessey, Vice President Corporate Communications. Please go ahead.
Thank you and good morning, everyone. We are pleased that he has joined us for <unk> 2023 third quarter financial results.
On the Donlin Gold project.
On today's call, we have Greg Lang, <unk>, President and CEO and David at a well known gold 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.
I would like to remind our listeners 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 included in this presentation.
I now have the pleasure of turning the presentation.
C.
CEO , Greg Lang great.
Thank you Melanie.
Before we begin I would like to note that Dr. Thomas Kaplan, our chairman and largest shareholder sensors regrets for not being able to be on the call. This morning, and she has been transferred back to the U S. After several weeks abroad.
Yeah.
I heard of going into our third quarter activities I'd like to begin today's call by providing a brief overview on slide five.
Our reward for us.
And our shareholders view Donlin gold as a tier one asset.
With approximately 39 million ounces of gold at an impressive grade of two in a quarter grounds more than twice the industry average.
Adjusted mine life of almost 30 years.
Donlin gold has the potential to become a significant cost effective producer.
In addition, excellent exploration potential exists beyond the known resource area, which covers less than 5% of our extensive land holdings.
And importantly, the project is situated on private land.
Designated for mining in Alaska.
World, leading jurisdiction known for responsible mining practices.
Enduring partnerships.
Ritualistic and T K C.
Positioning the project favorably on a path toward development.
Okay.
And that's important.
To put into context, the company's accomplishments since the reorganization over 10 years ago, especially for those who are new investors unless familiar with novel gold.
We have been focused on executing a strategy that was set in motion by our chairman and me.
In 2012 names.
Namely to unlock the value of Nova Cold high quality assets for our shareholders and dedicate all of our energy towards creating a maximum leveraged pure gold play on the unique endowment.
The Donlin project is slowing on slide six.
Yeah.
Looking at Slide seven Alaska offers an excellent environment for mining.
One of the world's safest jurisdictions.
It ranks the second largest gold producer in the United States with a well defined permitting process.
Numerous companies.
We have achieved success here and the government is very supportive and recognizes the importance of responsible natural resource development.
Yeah.
During the year, our environmental social and governance achievements pitch.
Pictured on slide eight.
Included in excellent health and safety record with zero lost time incidents again over 10 years of.
Operator: The Conference Operator Welcome to the NoveGold 2023, 3rd quarter 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. To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. Webcast viewers may submit questions through the text box in the lower right corner of the webcast frame.
This clean record.
Our project site workforce composed primarily of Alaska native employees.
And an increase in community engagements and investments throughout the region.
From a governance standpoint, our board exhibits a well balanced composition with strong representation of minorities and women.
And Noverco.
Nearly half of our employees are women, highlighting our dedication to diversity and inclusion.
Melanie Hennessey: I would now like to turn the conference over to Melanie Hennessey, Vice President Corporate Communications. Please go ahead. Thank you and good morning everyone. We are pleased that you have joined us for Nov. 2023, 3rd quarter Financial Results, and we will put forward an update on the Don DeMarco project.
Okay.
Throughout the remainder of the year, we will continue to monitor reflect and refine our environmental social and governance performance.
Maintaining strong records of health and safety at the project site.
Expanding our investments in partnership with the local communities.
Melanie Hennessey: On today's call, we have Greg Wang, Nov. President and CEO and David Audible, Nov. Vice President and CFO.
And working to enhance our governance practices.
Including implementation of our human rights, and new diversity equity and inclusion policies.
Melanie Hennessey: At the end of the webcast, we will take questions by phone. Additionally, we will respond to questions received by email.
Melanie Hennessey: I would like to remind our listeners as stated on slide three, any statements made today may contain forward looking information, such as projections and goals, which are likely to involve risk detail in our various Edgar and Cedar filing, and forward looking disclaimers included in this presentation.
As currently envisioned with approximately 39 million ounces.
Donlin Gold coast, one of the largest and highest grade undeveloped open pit and dominance in the world, which would average over a million ounces per year for 27 years.
When looking at the group of gold development projects in North and South America as shown on slide nine.
Greg Wang: I now have the pleasure of turning the presentation cover to our President and CEO, Greg Wang, Greg. Thank you, Melanie.
It was by far the largest.
And was called global gold production continuing to decrease.
Greg Wang: Before we begin, I would like to note that Dr. Thomas Chaplin are chairman and largest shareholder since his regrets for not being able to be on the call this morning, as he is in transit back to the US after several weeks of run. A hint of going into our 3rd quarter activities, I'd like to begin today's call by providing a brief overview on slide five on why both us and our shareholders view Don and Gov as a tier one asset.
It is clear that the industry needs projects of scale greed and longevity.
Right out multiple gold.
Price cycles.
With the greater more than twice the industry average for an open pit at two in a quarter grams as shown on slide 10.
This is vantage is expected to put donlin is one of the lowest cost gold producers in the industry.
Okay.
Excellent exploration potential exists beyond the defined resources located in the asthma and Louis areas on the diagram shown here, which.
Greg Wang: With approximately 39 million ounces of gold at an impressive grade of two and a quarter grams, more than twice the industry average, and a projected mine life of almost 30 years, Don and Gov has the potential to become a significant and cost effective producer. In addition, excellent exploration potential exists beyond the known resource area, which covers less than 5 percent of our extensive land holdings. And importantly, the project is situated on private land designated for mining in Alaska, a world-leading jurisdiction known for responsible mining practices and enduring partnerships with holistic and TTC that position the project favorably on a path toward development.
Occupancy only three kilometers of an eight kilometer mineralized belt.
As highlighted on slide 11.
The critical upside exist to potentially increase ounces and extend the mine life.
Given the majority of the land.
He's not thoroughly explored.
Okay.
Turning to slide 12.
Tom what offers unique leverage.
To go in a place where you can keep the fruits of that leverage.
As you see on the Bar chart. It offers exceptional value and a wide range of gold prices.
Okay.
In the upper right corner.
We added a quote from a Mcclellan report on incoming golf market.
Greg Wang: It is important to put into context the company's accomplishments since the reorganization over 10 years ago, especially for those who are new investors and less familiar with Don and Gov. We have been focused on executing a strategy that was set in motion by our chairman and me in 2012, namely to unlock the value of noble gold high quality assets for our shareholders and dedicate all of our energy for creating a maximum leveraged pure gold play on the unique endowment, that is the looking at slide seven Alaska offers an excellent environment for mine and is in one of the world's safest jurisdictions.
How high gold prices would go well.
We thought that might be of interest and it's relevant given recent industry trading activities.
It is private land owners.
Teekay <unk> and calista are dedicated to developing donlin gold in a way that remains consistent with the elders vision of responsible development, while creating jobs and economic benefits for the surrounding communities as well as protecting the local culture.
A few quotes are provided from originators of both Alaska Native corporations on slide 13.
So arista and Teekay sees knowledge and guidance has been critical over the years throughout the permitting sustainability and community.
The engagement initiatives.
Greg Wang: It ranks the second artist gold producer in the United States with a well-defined permitting process. Numerous companies have achieved success here and the government is very supportive and recognizes the importance of responsible natural resource development. Three year our environmental, social and governance achievements pictured on slide eight included an excellent health and safety record with zero lost time incidents again over 10 years since of this clean record, a project site workforce composed primarily of Alaska native employees and an increase in community engagements and investments throughout the region.
We eventually I appreciate there are meaningful input regarding the land.
And the significant economic needs required to sustain healthy living for their communities.
Our partners continued and time tested collaboration projects support and full engagement are extremely valuable in ensuring responsible and economic development throughout all phases of the Diamond project.
With the combination of these attributes of Donlin gold has the potential to form the cornerstone of genuine and sustainable economic development in the Y K region.
For many decades to come.
I will now touch on the milestones that were achieved in the third quarter and the ongoing activities at the Donlin project.
Greg Wang: From governance standpoint our board exhibits a well-balanced composition with strong representation of minorities and women. At NoveGold near a half of our employees are women highlighting our dedication to diversity and inclusion. Throughout the remainder of the year we will continue to monitor, reflect and refine our environmental, social and governance performance including maintaining strong records of health and safety at the project site, expanding our investments and partnership with the local communities and working to enhance our governance practices, including implementation of our human rights and new diversity, equity and inclusion policies.
Okay.
Turning to slide 15.
This year's field program was safely completed as scheduled in July with.
With the majority of our local hires coming from the Y K region.
The program included comprehensive field work and geotechnical drilling required for the Alaska Dam safety certificates.
This involves data collection at the locations earmarked for water retention structures, including the proposed tailings storage.
The field work included over 1800 meters of drilling 74.
Water retention structure test pits and over 25 kilometers of seismic survey.
Additional field work included defining the groundwater at site.
Greg Wang: As currently envisioned with approximately 39 million ounces down the Gold Coast one of the largest and highest grade undeveloped open pit endowments in the world which would average over a million ounces per year for 27 years. We're looking at the group of Gold Development projects in North and South America as shown on slide nine is by far the largest and with global Gold production continuing to decrease it is clear that the industry needs projects of scale, grade and longevity to write out multiple Gold price cycles.
Hydrologic drilling that provided essential information for mine planning and design.
At the historic Wyman Placer site restoration work encompassed a significant stream and pond habitat creation.
The final work, including and.
Anticipated.
Quite a class access and use is planned for next year's field season.
Furthermore, the owners, we're doing work to validate the updated geologic and resource model and it is also being used for various mine planning scenarios.
With support from the owners and third party consultants Donlin also completed tradeoff studies, an extensive analysis.
Greg Wang: With the greater more than twice the industry average for an open pit at two and a quarter grams is shown on slide ten. This advantage is expected to put downland as one of the lowest cost gold producers in the industry. Excellent exploration potential exists beyond the defined resources located in the Akma and Lewis areas on the diagram shown here, which occupies only three kilometers of an eight kilometer mineralized belt. As highlighted on slide 11, incredible upside exists to potentially increase ounces and extend the mine life, given the majority of the land is not thoroughly explored.
Project assumptions and clips and designed components, such as optimizing the engineering metallurgy hydrology and power infrastructure.
Yeah.
The recently completed comprehensive work, providing valuable information for the Donlin Gold LLC board and the owners.
Which was discussed further at the recent workshop in Alaska and our <unk>.
Helping us define the next steps and the continued advancement of the Donlin Gold project.
On slide 16.
We highlight our third quarter community activities at Donlin gold.
In June Donlin gold added another community liaison representative for the local village Neuner picture.
Greg Wang: Turning to slide 12, Donald offers unique leverage to gold in a place where you can keep the fruits of that leverage. As you see on the bar chart, it offers exceptional value and a wide range of gold prices. In the upper right corner, we added a quote from the McClellan report on the coming gold market and how high gold prices would go. We thought that might be of interest in this relevant given recent industry trading activities.
Thereby increasing the total team members to six.
These collaborative efforts reinforced by the establishment of 14 shared value statements. We achieved villages in the Y K region.
These statements formalized donlin gold's consistent engagement with the local communities.
Build long term relationships and address specific community needs.
We also conducted another successful in it for the long haul backhaul program for the six year in a row.
Greg Wang: As private landowners, both TKC and Charlista are dedicated to developing downland gold in a way that remains consistent with the elders vision of responsible development, while creating jobs and economic benefits for the surrounding communities, as well as protecting the local culture. A few quotes are provided from the leaders of both Alaska Native corporations on slide 13. Charlista and TKC's knowledge and guidance has been critical over the years throughout the permitting sustainability and community engagement initiatives.
This project is dedicated to the collection and removal and safe disposal of hazardous materials and electronic waste from villages in the region.
Preventing adverse impacts on landfills and waterways.
This year's program achieved significant milestones, including the removal of waste from fish camps in the Middle Kuskokwim River.
In addition, donlin gold employees from three villages trading.
A key part in initiating wastes backhaul operations, how long the Yukon River.
Greg Wang: We immensely appreciate their meaningful input regarding the land and the significant economic needs required to sustain healthy living for their communities. Our partners continued in time-tested collaboration, project support, and full engagement are extremely valuable in ensuring responsible and economic development throughout all phases of the Donland project.
Donlin Gold also supported the XL Alaska program in June .
Which is a nonprofit organization, providing supplemental academic career and technical education initiatives for rural youth and young adults throughout the region.
Students receive high school credit toward graduation, and concurrent college credits.
Donlin gold is a federally permitted project private Alaska Native Corporation land designated by law for mining activities as part of the 1971, Alaska Native claims settlement Act.
Greg Wang: With the combination of these attributes, Donland Gold has a potential to form the cornerstone of genuine and sustainable economic development in the YK region for many decades to come.
This is a differentiating factor for many other mining projects in Alaska.
Greg Wang: I will now touch on the milestones that were achieved in the third quarter in the ongoing activities at the Donland project. Turning to slide 15, this year's field program was safely completed as scheduled in July, with the majority of our local hires coming from the YK region. The program included comprehensive fieldwork and geotechnical drilling required for the Alaska down safety certificates. This involved data collection at the locations earmarked from water retention structures, including the proposed paling storage.
Permitting in the United States in Alaska, where represents a significant and rigorous endeavor, where success hinges on years of dedicated effort, ensuring a diligent thorough.
Zero and transparent all inclusive process.
Slide 17 list all the federal and state permits and certificates received to date.
We received our federal permits from the U S Army Corps of Engineers, and the Bureau of P. L. M. In 2018 by numerous state permits listed on the attached slide.
Yeah.
Donlin gold its owners and partners.
Greg Wang: The fieldwork included over 1800 meters of drilling, 74 water retention structure test pits, and over 25 kilometers of seismic survey. Additional fieldwork included defining the ground water at site with hydrologic drilling that provided essential information for mind planning and design. At the historic Lyman Placer site, restoration work encompassed a significant stream and pond habitat creation. Final work including anticipated aquatic life access and use is planned for next year's field season. Furthermore, the owners were doing work to validate the updated geologic and resource model and it is also being used for various mind planning scenarios with support from the owners and third-party consultants. Found and also completed trade-off studies and extensive analysis project assumptions inputs and design components such as optimizing the engineering, metallurgy, hydrology and power infrastructure.
Calista and Teekay C possess an intimate understanding of the project permitting and regulatory regulatory procedures and remain committed.
Two supporting the federal and state agencies in defending these permits.
As shown on slide 18, several positive updates occurred in the third quarter.
The new air quality permit was issued in July and was not appeal.
Donlin gold had applied for new air quality permit in 'twenty to 'twenty two.
Based on updated modeling and emissions control information.
In April and July .
The Alaska Superior Court upheld.
The Alaska Department of natural resources issuance of the right away lease.
And then the Earth Justice cases, respectively.
Under appeal in the briefing process is underway.
Okay.
The regularly scheduled reassurance of the Alaska pollutant discharge elimination system permit.
Is underway and was extended indefinitely through E reassurance, which is expected to occur next year.
Yeah.
On September 1st the Alaska Superior Court affirmed the decision on Alaska Gold's water rates after completing the briefing process and holding oral arguments linked to the appeal filed by Earth Justice.
Greg Wang: The recently completed comprehensive work provided valuable information for the down-and-goal LLC board and the owners, which was discussed further at the recent workshop in Alaska and are helping us define the next steps in the continued advancement of the down-and-goal project on slide 16.
Also during the third quarter.
The environmental Commissioner upheld the clean water Act.
Section 401 certification of the U S Army Corps of engineers permit.
Greg Wang: We highlight our third quarter community activities at down-and-goal. In June, down-and-goal added another community liaison representative for the local village of Nunepechec, thereby increasing the total team members to six. These collaborative efforts reinforced by the establishment of 14 shared value statements with key villages in the YK region. These statements formalize down-and-goal's consistent engagement with the local communities, build long-term relationships and address specific community needs. We also conducted another successful in-it for the Long Hall backhoe program for the six-year and a row.
Despite multiple challenges all appeals against Donlin gold permits have been unsuccessful to date underscoring our ongoing confidence in the process.
We recognize the importance of preparedness and organization in these matters.
Our unwavering support of Donlin gold and its owners, we will continue to back the agency's defending their thorough and diligent permitting process.
With that I will now turn the call over to David Agarwal, Our Chief Financial Officer to review the third quarter financial results.
Dave.
Yeah.
Okay. Thank you Greg.
Greg Wang: This project is dedicated to the collection and removal and state disposal of hazardous materials and electronic waste from villages in the region, preventing adverse impacts on land fields and waterways. This year's program achieved significant milestones including the removal of waste from fish camps in the middle Cuscoon River. In addition, Don and Golden employees from three villages try to keep part in initiating waste back how operations along the Yukon River. Don and Gold also supported the Excel Alastair Program in June, which is a nonprofit organization providing supplemental academic, career and technical education initiatives for rural youth and young adults throughout the region.
20 highlights our operating performance.
We reported a net loss of $11 1 million in the third quarter of 5 million decrease from the prior year quarter, primarily due to lower field of expenses at Donlin gold.
Bill Burke and geotechnical drilling for the Alaska Dam safety certificates application and hydrological drilling to support mine planning and design completed in July this year.
During the prior year quarter, the large exploration drilling program was progressing towards completion.
Increased interest expense on the promissory note is off.
Set by increased interest income on cash and term deposits.
Third quarter cash flows are highlighted on slide 21.
Cash and term deposits increased by $21 1 billion with $25 million received from Newmont 3 million used for G&A.
And two and a half million to fund our share of Donlin gold.
The decrease in cash used in the third quarter of 2023 compared to 22 two.
Greg Wang: Students receive high school credit toward graduation and concurrent college credits. Don and Gold is a federally permitted project on private Alaska Native Corporation land. Designated by-law for mining activities as part of the 1971 Alaska Native Crane Settlement Act. This is a differentiating factor from many other mining projects in Alaska. Permitting in the United States in Alaska, where represents a significant and rigorous endeavor where success hinges on years of dedicated effort, ensuring a diligent, thorough and transparent all-inclusive process.
Two was due to a reduction in required donlin gold funding and increased interest received on cash and term deposits.
The higher interest rates.
On slide 22.
Full fiscal year 2023.
We expect to spend approximately $13 million in G&A cost.
$18 million to fund Donlin gold and $1 million on remediation costs at the former new Gold House property near normal Alaska.
Our forecast funding of Donlin gold through November 30th.
Greg Wang: Slide 17 lists all the federal and state permits and certificates received to date. We received our federal permits from the U.S. Army Corps of Engineers and the BLM in 2018, followed by numerous state permits listed on the attached slide. Don and Gold, its owners and partners, Celista and TKC, possess an intimate understanding of the project's permitting and regulatory procedures and remain committed to supporting the federal and state agencies in defending these permits.
$1 million higher than originally planned due to additional mining studies.
Back to you Greg.
Thank you Dave.
Donlin gold.
We have support from the owners and various third party consultants.
Completed numerous tradeoff studies, an extensive analysis on all project assumptions inputs and designed components.
Such as mine engineering, metallurgy, hydrology power and infrastructure.
Yeah.
This recently completed work provided valuable information for Donlin Gold's Board and its owners. These were discussed in depth.
Greg Wang: As shown on slide 18, several positive updates occurred in the third quarter. The new air quality permit was issued in July and was not appealed. Don and Gold had applied for new air quality permit in 2022 based on updated modeling and emissions control information.
At the most recent joint workshop, we held in Alaska, with Barrick and Theyre, helping to define the next steps and the advancement of the Donlin Gold project.
Work plan for the coming years, we look forward to providing an update in.
In the next month.
Greg Wang: In April and July, the Alaska Superior Court appealed the Alaska Department of Natural Resources issuance of the right-of-way lease and in the Earth Justice cases, respectively, under appeal and the briefing process is underway. The regular and scheduled reissuance of the Alaska Pollute Discharge Elimination System Permit is underway and was extended indefinitely through reissuance, which is expected to occur next year.
There are many different conflicting economic wins that are causing turbulence, which I believe ultimately will be very positive for gold.
We're seeing right now go past the $1800 support level.
And after this test is done I think we can expect a sharp move upwards.
Not too distant future.
The chart on Slide 24 provides a history of cold cycles from 1970 onward.
The cycle, we find ourselves in currently has several distinguishing factors that were not seen in past cycles.
Greg Wang: On September 1st, the Alaska Superior Court affirmed the decision on Alaska Gold's water rates after completing the briefing process and holding oral arguments linked to the appeal filed by Earth Justice. Also during the third quarter, the Environmental Commissioner upheld the Clean Water Act Section 401 certification of the U.S. Army Corps of Engineers permit. Despite multiple challenges, all appeals against Don and Gold Permits have been unsuccessful today, underscoring our ongoing confidence in the process.
Such as central banks are accumulating gold at unprecedented rates.
Government debt at historical highs lack of new discoveries and rising globalization trends just to name a few of the things which are predicted to have a positive impact on gold.
Escalating demand and supply limitations underscore the value of mining equities with top tier preproduction assets.
Donlin Gold's steadfast commitment.
To advancing this extraordinary project carefully up the value chain.
Greg Wang: We recognize the importance of preparedness and organization in these matters. With our unwavering support of Don and Gold and its owners, we will continue to back the agencies defending their thorough and diligent permitting process.
<unk> and our increased investments and extensive and expanded partnerships.
The work done on the project has added considerable value in a responsible manner for all stakeholders, including Alaska residents and Noverco shareholders.
David Ottewell: With that, I will now turn the call over to David Ottewell, our chief financial officer to review the third quarter financial results. David? Okay, thank you, Greg.
I'm Gonna holds.
<unk> as a true tier one asset.
World leading jurisdiction.
And it has been dissipated to provide exceptional cold leverage.
David Ottewell: Like 20 highlights are operating the performance. We reported a net loss of 11.1 million to the third quarter, a 5 million decrease from the prior year quarter, primarily due to lower field expenses at Don and Gold. With Fieldwork and Geotechnical drilling for the Alaska dam safety certificate application and hydrological drilling to support mind planning and design completed in July this year. During the prior year quarter, the large exploration drilling program was progressing towards completion.
And economic benefits for all stakeholders.
It's one of the top development gold projects in the World Donlin Gold where he built.
It is expected to serve as a cornerstone for economic sustainable growth in the region for many years to come.
I wish to thank all of our dedicated shareholders for choosing to invest in notebook roll as well as their engagement patients and valuable insights over the years.
David Ottewell: Increased interest expense on the promissory note is offset by increased interest income on cash in term deposits. Third quarter cash flows are highlighted on slide 21. Cash in term deposits increased by 21.1 million with 25 million received from New Month, 3 million used for DNA and 2.5 million to fund our share of Don and Gold. Depreasy cash used in the third quarter 2023 compared to 2022 was due to a reduction in the required Don and Gold funding and increased interest received on cash in term deposits due to higher interest rates.
We also look forward to providing updates on developments on Donlin gold.
With that operator, we will now open the line for questions.
Yeah.
Thank you.
Now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you will hear a tone acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any Keith can withdraw your question. Please press Star then two.
The first question comes from Lucas pipes with B Riley Securities. Please go ahead.
Thank you. Good morning, everyone. This is this is Nick Charles asked me a question on behalf of Lucas.
David Ottewell: On slide 22 for the full fiscal year 2023. We expect to spend approximately 13 million on DNA costs, 18 million to fund Don and Gold and 1 million on remediation costs at the former New Goldhouse property near Nova Alaska. Our forecast funding of Don and Gold through November 30 is 1 million higher than originally planned due to additional mining studies.
Gratulation on the recent progress.
Greg last quarter, you touched on the fine tuning on the metallurgical side as part of the comprehensive work and you know what.
With the trade off studies now completed I was wondering if you could maybe expand on some of the optimization done as it relates to input assumptions.
And then maybe a second question a follow up there you said working to define these next steps. So I was wondering if there's a particular bucket here weather inputs or assumptions, that's really driving that process.
Greg Wang: Back to you, Greg. Thank you, Dave. Don and Gold with support from the owners and very third party consultants completed numerous trade off studies and extensive analysis on all project assumptions inputs and design components such as mine engineering, metallurgy, hydrology, power and infrastructure.
Thank you very much.
Sure. Thank you. Thank you for joining the call. This morning.
Give our best to Lucas.
Thank you.
You know the feasibility study and hence the infrastructure concepts for Donlin are somewhat dated now and I think it was important for us to revisit them and make sure that the assumptions on how to fuel the project how to generate power or how to access it now to make sure they were still valid and that's what he perhaps.
Greg Wang: This recently completed work provided valuable information for the Doneland Gold Board and its owners. These were discussed in depth. At the most recent joint workshop we held in Alaska with Barrett and they're helping to define the next steps in the advancement of the Doneland Gold Project and a work plan for the coming years. We look forward to providing an update in the next month. There are many different conflicting economic wins that are causing turbulence, which I believe ultimately will be very positive for Gold.
All of these studies I think the the original concept was validated and that was a you know very important that it stood the test of time.
A lot of the work you mentioned, specifically metallurgy you've.
Very much of a fine tuning process, you know of course mean to grind a little bit to save on power and some fine tuning to the flotation cells to increase the recovery a couple of percent so yeah very in.
In depth work.
<unk> enhances the project, although it hasn't really it has not significantly changed it and I think that's the same with all of the infrastructure and our general assumptions on the project.
Greg Wang: We're seeing right now Gold test the $1800 support level. And after this test is done, I think we can expect a sharp move upwards in the not too distant future. The chart on slide 24 provides a history of Gold cycles from 1970 onward. The cycle we find ourselves in currently has several distinguishing factors that we're not seeing in past cycles, such as central banks to accumulating Gold at unprecedented rates, government debt, and historical highs, lack of new discoveries, and rising globalization trends just to name a few of the things which are predicted to have a positive impact on Gold.
The project has conceived and permitted remains the best approach to take forward.
Yeah.
Great. That's really helpful. I appreciate all the color there.
Maybe just one more and more from a macro perspective.
We have a strong dollar right rising yields.
Inflation that seems to be sticking around with regard to some project costs.
What do you think we need to see here to bring some some resource investors off the sidelines.
Well I think you have to absolutely.
Absolutely right resource investors have are completely off on the sidelines and were you know and we're not seeing any new institutional investors coming here.
Greg Wang: Escalating demand and supply limitations underscore the value of mining equities with top-tier pre-production assets. Doneland Gold's steadfast commitment to advancing this extraordinary project carefully up the value chain is reflected in our increased investments in extensive and expanded partnerships. The work done on the project is added considerable value and a responsible matter for all stakeholders, including Alaska residents and Nova Gold shareholders. Doneland holds status as a true tier one asset in a world leading jurisdiction, and it is anticipated to provide exceptional Gold leverage and economic benefits for all stakeholders.
And I think it's very much not just isn't cold markets weren't really throughout the equities people are taking a wait and see look you know what's going to happen with interest rates. You know is it higher for longer and the strength of the dollar is also playing into gold and gold equities.
I think what we need to see to really break this is.
You know the fed is going to signal sooner or later that they can't keep raising inflation interest rates and if you looked at gold prices in pretty much every major currency other than U S dollar theyre trading at record high prices.
I think once we watched the fad.
Signals that the rate hikes or are over with I think the dollar will stabilize if not dropped and that will be very good for coal I think Goldman is just you know according to significantly breakout.
Greg Wang: As one of the top development Gold projects in the world, Doneland Gold will be built, is expected to serve as a cornerstone for economic, sustainable growth in the region for many years to come.
When the economic turbulence caused by the rising rates Jonestown.
Okay.
Craig as always we really appreciate your perspective, so that you and the team continued best of luck.
Greg Wang: I wish to thank all of our dedicated shareholders for choosing to invest in Nova Gold, as well as their engagement, patience, and valuable insight over the years. We also look forward to providing updates on developments on Doneland Gold.
Thank you.
We also have a question coming from the webcast from one of our shareholders David Lapinski.
Can you strike a deal with an energy company.
To supply the pipeline to the mine up their costs.
Melanie Hennessey: With that operator, we will now open the line for questions. Thank you.
Well David Thank you for your question and your interest.
Now that I think we have several that are bringing gas to the site.
Operator: We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request.
Is the most viable option and in the future, perhaps using donlin is a hub for energy for the region.
Operator: If you are using a speaker phone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two.
Now that we've settled that the conversations with other interested parties will it will take on a new life and it would be our preference to bring in a third party to own and operate that pipeline and we would end up as customers. So it's certainly something that.
Lucas Pipes: The first question comes from Lucas Pipes with Be Rally Securities. Please go ahead. Thank you.
Lucas Pipes: Good morning, everyone. This is Nick Jowles, asking a question on behalf of Lucas. Congratulations on the recent progress. Greg, last quarter you touched on the fine tuning on the metallurgical side as part of the comprehensive work. With the trade-off studies now completed, I was wondering if you could maybe expand on some of the optimization done as it relates to inputs, assumptions, etc. And then maybe a second question will follow up there. You said working to define these next steps. So I was wondering if there's a particular bucket here whether inputs or assumptions that's really driving that process. Thank you very much.
Is on our minds as we continue to advance the project.
This concludes the question and answer session I would like to turn the conference back over to Craig for any closing remarks.
Alright, well, thank you everyone on behalf of Ryan.
<unk>, our chairman and our board. Thank you for your continued interest in the company and taking the time to get a third quarter update and we look forward to additional updates as we lay out the plans for next year.
Thank you.
Okay.
Greg Wang: Sure. Thank you for joining the call this morning. Give out best to Lucas.
Yeah.
This does conclude today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
Greg Wang: I think the feasibility study enhanced the infrastructure concepts for Don Leonard are somewhat dated now. And I think it was important for us to revisit them and make sure that the assumptions on how to fuel the project, how to generate power, how to access it. You know, to make sure they were still valid. And as we wrapped up all of these studies, I think the original concept was validated. And that was, you know, very important that it stood the test of time.
Okay.
[music].
Yes.
[music].
Greg Wang: A lot of the work you mentioned specifically metallurgy. You know, very much a fine tuning process, you know, corresponding to grind a little bit to save on power. And, you know, some fine tuning to the flotation cells to increase the recovery a couple percent. So, you know, very in-depth work that enhances the project, although it hasn't really, you know, it's not significantly changed it. And I think that's the same with, you know, all of the infrastructure and our general assumptions on the project is the project that's conceived and permitted remains the best approach to take forward.
Unknown Attendee: Great. That's that's really helpful. I appreciate all the color there.
Unknown Attendee: Maybe just one more, more from a macro perspective. You know, we have a strong dollar, rising yields, inflation that seems to be sticking around with regard to some project costs.
Greg Wang: What do you think we need to see here to bring some resource investors off the sidelines? Well, I think you're absolutely right. Resource investors have are completely off on the sidelines and we're, you know, and we're not seeing any new institutional investors coming in. And I think it's very much not just in the gold markets, but really throughout the equities, people are taking away and see, look, you know, what's going to happen with interest rates.
Greg Wang: You know, is it higher for longer? And the strength of the dollar is also playing into, you know, gold and gold equities. So I think what we need to see to really break this is, you know, the Fed has been a signal sooner or later that they can't keep raising interest rates. And if you look at gold prices in pretty much every major currency, other than US dollar, they're trading at record high price, and I think once the Fed signals that the rate hikes are over with, I think the dollar will stabilize, if not drop, and that will be very good for gold. I think gold is just, you know, calling to significantly break out when the economic turbulence caused by the rising rate settles down.
Unknown Attendee: So so to you and the team can continue best of luck. Thank you.
Unknown Attendee: We also have a question coming from the webcast from one of our shareholders, David Lucenti.
Unknown Attendee: Can you strike a deal with an energy company to supply the pipeline to the line at their cost?
Greg Wang: Well, thank you for your question and your interest. You know, now that I think we've settled that bringing gas to the site is the most viable option. And in the future, perhaps using gone one is a hub for energy for the region. You know, I think now that we've settled that the conversations with other interested parties will, it will take on a new life and it would be our preference to bring in a third party to own and operate that pipeline. And we would end up as customers. So it's certainly something that is on our minds as we continue to advance the project.
Greg Wang: This concludes the question and answer session. I wouldn't like to turn the conference back over to Greg for any closing remarks. All right, but thank you everyone on behalf of Nova Gold, our chairman and our board. Thank you for your continued interest in the company and taking the time to get a third quarter update. And we look forward to additional updates as we lay out the plans for next year. Thank you.
Operator: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
Unknown Attendee: Thank you.