Q1 2024 NovaGold Resources Inc Earnings Call
I'm going to
Music by Kevin MacLeod
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None: Thank you.
None: Thank you for standing by. This is the conference operator. Welcome to the NoveGold 2024 First 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.
None: To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and 0. Webcast viewers may submit questions through the text box in the lower right corner of the webcast frame.
None: Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Melanie Hennessey, Vice President, Corporate Communications. Please go ahead.
Melanie Hennessey: Thank you, good morning everyone. We are pleased that you have joined us for NoveGold's 2024 first quarter financial results and for an update on the Donal Gold project. On today's call we have NoveGold's president and CEO Greg Lang and David Ottewell, NoveGold's vice president and CFO .
Melanie Hennessey: At the end of the webcast we will take questions by phone.
Melanie Hennessey: and email. Additionally, we will respond to questions received on the webcast.
Melanie Hennessey: I would like to remind you as stated on slide 3, any statements made today may contain forward-looking information such as projections and goals which are likely to involve risks detailed on our various EDGAR and CEDAR filings and forward-looking disclaimers included in this presentation.
Melanie Hennessey: I will now turn the presentation over to our President and CEO , Greg Lang.
Gregory A. Lang: Thank you, Melanie, and good morning, everyone.
Gregory A. Lang: Ahead of providing a summary on our first quarter results, I'd like to start today's call with a brief overview of the
Gregory A. Lang: of you
Gregory A. Lang: explaining why both us and our shareholders consider Donlon Gold a Tier 1 asset.
Gregory A. Lang: On the backdrop of a record gold price, it's important to highlight our investment thesis.
Gregory A. Lang: and why we view assets like Donlon Gold as more important than ever for the sector and for the investment community.
Gregory A. Lang: Starting with slide 5.
Gregory A. Lang: With an impressive resource of approximately 39 million ounces of gold, boasting a grade that is double the industry average at 2.25
Gregory A. Lang: and the project mine life exceeding 27 years, Don Langold has the potential to
Gregory A. Lang: be a low-cost, open-pit, million-ounce-a-year producer for many decades.
Gregory A. Lang: Additionally, its expansive land holdings
Gregory A. Lang: offer outstanding exploration potential with the current resource area covering less than 5% of the land.
Gregory A. Lang: Importantly, we are situated on private land
Gregory A. Lang: that was designated for mining in Alaska, a jurisdiction renowned for its responsible mining practices.
Gregory A. Lang: The project benefits.
Gregory A. Lang: from a favorable regulatory environment.
Gregory A. Lang: Furthermore, our enduring partnerships and life of mine agreements with Chalista and TKC solidified Donlan's position
Gregory A. Lang: for successful development.
Gregory A. Lang: It is crucial to provide context regarding the company's achievements following the reorganization that was set in motion over a decade ago.
Gregory A. Lang: Particularly for new investors who may be less acquainted with our history.
Gregory A. Lang: As depicted on slide 6, our focus has been executing the strategic vision established by our Chairman and myself.
Gregory A. Lang: This vision aims to unlock the value of NoveGold's top tier asset for our shareholders.
Gregory A. Lang: with a primary emphasis on advancing the Diamond and Gold Project, positioning it as a pure gold play with a distinct endowment that offers significant leverage.
Gregory A. Lang: Looking at slide 7.
Gregory A. Lang: Alaska represents a favorable environment for mining and stands out as one of the safest jurisdictions globally.
Gregory A. Lang: As the second largest gold producer in the US,
Gregory A. Lang: It boasts a clearly delineated permitting process.
Gregory A. Lang: Countless companies have thrived.
Gregory A. Lang: and the community of people in this region, supported by a government that strongly advocates for and acknowledges the significance of responsible natural resource development.
Gregory A. Lang: To touch further on Donalyn's assets,
Gregory A. Lang: As currently envisioned, it boasts one of the largest, highest grade, undeveloped open pit gold reserves totaling approximately 39 million ounces.
Gregory A. Lang: This endowment suggests an average annual gold production exceeding a million ounces over a 27-year period.
Gregory A. Lang: Comparing Donlan to other gold development projects in the
Gregory A. Lang: On slide 8, it emerges as the largest by a considerable margin.
Gregory A. Lang: As global gold production trends downward,
Gregory A. Lang: The industry increasingly requires projects characterized by
Gregory A. Lang: Read scale, grade.
Gregory A. Lang: and Longevity that can navigate multiple gold cycles effectively.
Gregory A. Lang: Turning to slide 10.
Gregory A. Lang: The bar chart shows the post-tax net present value calculated at a variety of gold prices.
Gregory A. Lang: Today's gold price nears the top end of the chart and would represent more than 25 billion dollars at a zero discounted rate
Gregory A. Lang: or about $10 billion at a 5% discount rate.
None: Thank you.
None: Excellent exploration potential exists well beyond the defined resources located in the ACMA and LUIS areas as identified on the diagram on slide 14.
None: The current resource occupies only 3 kilometers of this 8 kilometer system. Incredible potential remains to increase ounces and extend the life beyond
None: but has not already been explored.
None: As private landowners,
None: Both CHLSTHA and TKC are dedicated to developing Donland Gold in a way that remains consistent with their elders' vision of responsible development while creating jobs and economic benefits for the surrounding communities, as well as protecting the local culture.
None: On slide 12, excerpts from the leaders of both Alaska Native corporations underscore their dedication.
None: Chalista's and TKC's knowledge and guidance have been critical over the years, offering us insights throughout the permitting process, sustainability efforts, and community engagement initiatives.
None: Their valuable input regarding land and the substantial economic needs essential for sustaining community well-being are deeply appreciated.
None: The enduring collaboration, unwavering project support, and the complete engagement of our partners are pivotal in ensuring the Donland Gold project progresses responsibly and sustainably across all phases.
None: With the combination of these attributes, Don and Gold has the potential to form the cornerstone of
None: genuine and sustainable economic development for the YK region for many decades to come.
None: Site 13.
None: showcases NoveGold's achievements in environmental stewardship, health and safety, social and community engagement, and corporate governance for the 2023 calendar year.
None: Our latest sustainability report will be released this month.
None: featuring a comprehensive review of NoveGold's performance in all areas of environmental, social, and governance, including
None: Health and Safety.
None: Environmental Stewardship, and Community Engagement in Corporate Governance.
None: The safety and well-being of our personnel remain paramount.
None: Evident in our track record of well over 10 years without a lost time accident down on site.
None: Moreover, a significant portion of our workforce are comprised of local residents.
None: In 2024, our commitment to excellence extends to continued diligence and improvement across environmental, social, and governance fronts.
None: This entails maintaining robust records of environmental health and safety performance at the site.
None: Additionally, we aim to bolster our investments and partnerships with the residents of the communities in the region while enhancing our governance practices.
None: I will now touch on
None: The milestones achieved at the Don and Gold project during the first quarter, as well as highlight some of our ongoing activities.
None: In the first quarter, with the support from the owners and Donal & Gold, numerous important activities were conducted, as shown on slide 15.
None: We completed the scope of work for resource modeling,
None: with a third-party consultant.
None: Making a crucial independent step in updating the resource model.
None: Furthermore, advancement of metallurgical test work was achieved with the operation of a pilot plant in Ontario, Canada.
None: This allowed us to validate the optimizations to the flow sheet
None: with completion expected later this year.
None: Additionally, ongoing data collection initiatives refined some of the crucial characteristics for closure planning, while recent field data in hydrology was incorporated and led to updates in both the groundwater and surface water models.
None: Lastly, our efforts.
None: and Planning for the Regional Infrastructure Support
None: aimed at refining the scope and laying out the best path forward.
None: Through ongoing collaboration with Cholista, PKC, and other local communities, we have
None: and the community's representatives from NoveGold upheld a steadfast commitment to education,
None: and Environmental Stewardship.
None: These principles are actively reinforced not only at the Donilon Project site but in the 62 communities throughout the YK region.
None: Slide 16 showcases some of the community engagement activities and a big shout out to the Donlon team that always go above and beyond to connect with our stakeholders.
None: In that spirit, Donlan finalized its 16th shared value statement.
None: Reaffirming its commitment to ongoing engagement with local communities and addressing their specific needs.
None: The inaugural informational meeting for the Substance Communications Advisory Committee in Anchorage was held in the first quarter.
None: representing a pivotal partnership that fosters communication on substance matters, reflecting diverse perspectives on the Donlan Gold Project.
None: Another initiative includes collaborating with local tribes to monitor
None: and assess the conditions and management of the salmon fisheries in the Kuskokwim and Yukon River watersheds and identifying potential project opportunities to enhance the health of the salmon populations.
None: Support was extended to Regional Search and Rescue.
None: and rescue teams in the villages as well as the Alaska Safe Riders Initiative promoting safety on snow machines,
None: All Terran vehicles and all off-road vehicles, which is a common mode of transportation in rural Alaska.
None: Sponsorship of educational initiatives included the Lower Kuskokwim School District College and Career Fair, community sports and youth groups,
None: As well as supporting a basketball tournament, a very popular sport in Alaska, giving long winters a break.
None: In partnership with the native village of Nepimute, Donovan provided vital support for cultural awareness programs and upkeep on the ice road on the Kuskokwim River, ensuring safe transportation for residents to sports, cultural events, and other economic activities.
None: Additionally, Don and Gold proudly continues to fund and support the Cusco Quim 300, a premier mid-distance dog sled race, while also sponsoring
None: Mushers, Mike Williams, and Pete Kaiser who participate in the Iditarod.
None: Pete is a Donlan employee who recently secured his eighth race title and actively engages in youth with discussions primarily about suicide prevention and aligning Donlan's gold commitment to support the community well-being initiatives.
None: Finally, last February Donlan sponsored the Iron Dog.
None: and the world's largest and toughest snowmobile race that covers over 2,500 miles of Alaskan backcountry in which
None: Christina Woolston, Don and Gold's External Affairs Manager, participated. Congratulations, Christina. A great event.
None: Don and Gold is a federally permitted project
None: on private land designated by law for mining activities as part of the Alaska Native Claims Settlement Act more than 50 years ago.
None: A differentiating factor from most other mining assets in Alaska.
None: Permitting in the United States represents a significant and rigorous endeavor.
None: where success hinges on years of dedicated efforts to ensure a diligent, thorough, transparent process that engages all stakeholders from the region.
None: Slide 17 lists all the federal and state permits and certificates received to date.
None: We recognize there is a price to be paid for jurisdictional safety.
None: There are increasing number of places in the world where permitting is becoming less burdened by the rule of law.
None: The flip side of that relative ease is that these locales offer much less political stability and social reliability than Alaska, the second largest gold producing state and one of the world's safest countries for free enterprise.
None: We treasure the conviction that knowing when the mine is built
None: Our investors will be able to enjoy the luxury of knowing that Alaska is a place where they can sleep well, confident that when they awaken in the morning, they would still own what they thought they owned the night before.
None: In an ever more complex and fraught world, this sober reasoning makes it well worth the effort.
None: Looking at slide 18 and Q1, the Dam Safety Certification Preliminary Design Packages continue to advance.
None: We expect they will be submitted later in the year.
None: Earthjustice filed their opening briefs with the Alaska Supreme Court and Alaska Superior Court in January , appealing Donalyn's water rights and water quality certifications.
None: Reply Briefs will be submitted in the coming months.
None: The State Right-of-Way Lease Briefing was completed in February and Earthjustice has requested oral argument
None: So the schedule has not been set.
None: In the federal litigation pertaining to the joint record of decision,
None: Opening briefs were submitted in February . The State of Alaska, CHLSTH, and Donovan.
None: are expected to reply in the coming quarter.
None: Despite these multiple challenges, it is important to note that all appeals against Donlan permits
None: have been unsuccessful
None: We recognize the importance of preparedness and organization in these matters and as permitting in the United States and Alaska
None: is a significant rigorous undertaking.
None: Our commitment remains steadfast in aiding the federal and state agencies in
None: and upholding the permitting process and focusing on securing remaining state level permits.
None: We appreciate the bipartisan engagement and support for the Don and Gold Project in Alaska.
None: We treasure the security that this
None: Stability Brings.
None: Moving to slide 19, NoveGold is pleased to present our 2024 Chairman's Interview.
None: Interview featuring Dr. Thomas Kaplan, our Chairman and largest shareholder, in conversation with Daniela Cambone, Director of Global Media and ITM Trading.
None: This discussion took place
None: and the New York Stock Exchange and delves into the macro perspectives of world events in 2023, the underperformance
None: Gold Equities, and the Strong Confidence in Gold Stocks.
None: and the strategic trade this year and beyond.
None: Additionally,
None: and the interview explores the investment proposition in NoveGold amidst current market conditions.
None: We encourage you to listen to the full conversation available at our website.
None: With that, I will now turn the call over to David Ottewell.
David A. Ottewell: to review 2024's Q1 financial results.
David A. Ottewell: Okay?
David A. Ottewell: Thank you, Greg. Slide 21 highlights our first quarter operating performance.
David A. Ottewell: We reported a net loss of $10.3 million in the quarter, a small decrease from the prior quarter, and that was due to lowered Donal Gold project costs and increased interest income, partially offset by increased interest expense on the promissory note, and higher G&A expenses.
David A. Ottewell: In the prior year quarter, Donley Gold costs include geotechnical drilling for the Alaska Dam Safety Certificate applications.
David A. Ottewell: In general, administrative costs increased primarily due to corporate staff additions and salary increases.
David A. Ottewell: First quarter cash flows are highlighted on slide 22.
David A. Ottewell: Cash and cash equivalents decreased by $8.2 million, primarily to fund our share of Dow and Gold and for corporate G&A expenses.
David A. Ottewell: The decrease in spending from the prior year quarter was due to lower down the gold funding requirements, partially offset by the timing of term deposit interest income receipts and higher G&A costs.
David A. Ottewell: On slide 23, we note our strong treasury.
David A. Ottewell: Financial position includes cash and cash equivalents of approximately $38 million and term deposits of $80 million.
David A. Ottewell: For the full year, we continue to expect to spend approximately $14 million in Donlan and $17 million for corporate G&A.
David A. Ottewell: Greg, I'll turn it back to you.
Gregory A. Lang: Thank you.
Gregory A. Lang: Thank you, Dave.
None: Last December , the Donilon Board approved a $28.5 million budget for this year, as shown on slide 24.
Gregory A. Lang: This encompasses resource modeling, mine planning, metallurgical pilot plant work, regional infrastructure support,
Gregory A. Lang: Geoscience, Hydrology, Closure Planning,
Gregory A. Lang: and the advancement of the Dam Safety Certificate applications, as well as ongoing support
Gregory A. Lang: for litigation, government affairs, our community engagement activities,
Gregory A. Lang: and sponsorships.
Gregory A. Lang: Discussions with BEREC are ongoing to advance Donlan up the value chain.
Gregory A. Lang: NoveGold remains committed to fulfilling the strategy that has been pledged time and time again.
Gregory A. Lang: Namely,
Gregory A. Lang: to embark on a bankable feasibility study to optimally position this project, setting up a potential constructive decision when the time is right for the benefit of all of our shareholders and stakeholders.
Gregory A. Lang: This unwavering commitment and extensive groundwork thus far has added substantial value in a responsible matter for all stakeholders and Alaska residents.
Gregory A. Lang: as well as NoveGold shareholders on slide 25.
Gregory A. Lang: With multiple tailwinds of the macro backdrop, the project
Gregory A. Lang: Size, Quality,
Gregory A. Lang: Low Cost Structure,
Gregory A. Lang: and Exploration Upside. We intend to solidify Donovan's status
Gregory A. Lang: is what we believe to be the best
Gregory A. Lang: and the best gold development story in the world today.
Gregory A. Lang: and a tier one jurisdiction. We believe that Donlan truly epitomizes a great asset that one can get great leverage in a great place to allow them to keep the fruits of that leverage.
None: Thank you.
None: We are thankful for the decisions of our shareholders to invest in our company and for their continued solidarity and engagement.
None: We reaffirm to each and every one of them that as stewards of the company, we continue to be focused on delivering on our strategy.
None: Operator, we are now ready to open the line for questions.
None: Thank you. To join the question queue, you may press star, then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then 2.
None: The first question comes from Lucas Pipes with B Riley Securities. Please go ahead.
Lucas Nathaniel Pipes: Thank you very much, Operator. Good morning, everyone.
Lucas Nathaniel Pipes: Greg, I wanted to ask
Lucas Nathaniel Pipes: about the potential to maybe speed up
Lucas Nathaniel Pipes: and a revised feasibility study in the context of a sharply rising gold price.
Lucas Nathaniel Pipes: Pretty remarkable what has happened here over the last few weeks and in my sense there's investor appetite for
Lucas Nathaniel Pipes: and accelerated development period. So I wondered how you think about that. Thank you very much.
Lucas Nathaniel Pipes: Good morning Lucas and thank you for taking the time to join our call.
None: As I noted in my presentation, we're working with BEREC to determine the optimal time to commence on a new feasibility study. And I think you're absolutely right.
None: and many more. The company is well positioned. We've got a lot of cash. We're in certainly a very rising price environment. And I think from our perspective, the time is right to move this project forward. And I think, bear in mind, the feasibility study will take us 18 to 24 months. And I think by the time it's done, we expect prices will be higher and we want to position this company to make a construction decision when the time is right. And we think that time is right.
None: Okay, that's helpful.
None: and based on what you know today and I understand you'll have to study this, but based on what you know today, what gold price...
None: makes a construction decision, a no-brainer. Is it $2,300? Is it maybe slightly higher than that? Curious how you think about that. Thank you.
None: I think at the risk of sounding flip, that's why we want to undertake a new feasibility study. But to answer your question, my sense is we're past the price point we need to really feel good about this project.
None: Thank you, Greg. And then as for kind of the current plan on supplying energy to the mine site, can you update me what the –
Gregory A. Lang: Current plan is maybe not the right phrasing, but in terms of what is your thinking today in regards to energy supply to the mine site? Is a natural gas pipeline, in your opinion, the most likely scenario or what alternatives could present themselves? Thank you very much.
Gregory A. Lang: Sure Lucas. Well in our feasibility study the gas pipeline
Gregory A. Lang: was the most preferred option to delivering energy to site and it envisioned that LNG gas would be bought into the port in Anchorage and then put into the pipeline. Yeah that still remains the most viable option and what right now we're you know working with
Gregory A. Lang: various groups to determine, you know, is there potential for third party participation in that undertaking?
Gregory A. Lang: and I think that as well as how can this pipeline play a role in the regional energy infrastructure. So a lot of moving parts for it, but delivering gas to the site and generating power at the site remains the preferred option.
Gregory A. Lang: and I think if we are, you know, third-party participation can certainly enhance the project for us.
None: and what would a third party participation look like? Can you expand on that a bit?
None: Well, it's early days of the conversations, but certainly there's interest from several native corporations.
None: to participating in the building of the pipeline, as well as interest from the state of Alaska and other
None: Private entities. So I think there's broad interest in the pipeline. Remember rural Alaska, the energy costs are unbelievably expensive because one, it's difficult to get energy there and two, the demand is relatively low.
None: So a big consumer of power like the Donland mine could really anchor the infrastructure coming into a very, very underserved part of the country. And I think there's money available to help.
None: and these underserved regions through the federal government.
None: So we're working with a lot of people that are very interested and supportive of seeing something that brings energy into the region. So we continue to work on that.
None: Greg, that is helpful. Thank you for all the detail and best of luck.
Gregory A. Lang: Thank you Lucas.
Gregory A. Lang: The next question comes from Don DeMarco with National Bank Financial. Please go ahead.
Don DeMarco: Thank you, Operator, and good morning, Greg and team. Thanks for the comments, additional color, and congratulations on all your continued strong ESG initiatives.
Don DeMarco: I guess that first question, let's consider that the Bank of Bill Feasibility Study is completed. I mean, maybe that'll be a year, maybe it'll be longer. All partners agree it's completed, and it already reaches a favorable go-forward decision to build the mine.
Don DeMarco: So what would be the next steps then? I mean the previous caller mentioned the gas pipeline. So what steps would be involved on that and additional permitting and timeframes associated? Just trying to get an idea of if all parties can agree and move forward on this.
Don DeMarco: What would it look like post-COVID?
None: Thank you, that best.
None: All right, well, let me break that into pieces, John . I think I want to first address the permitting. You know, we've received a federal permit.
None: and then as highlighted in our materials we've essentially completed the state permitting process. We only have one state permit left, a major one, and that's the dam safety certification. And we're working on that now. You know, that one has never been on the critical path. You know, the federal permits authorize you to disturb the land and the state has
None: and regulatory oversight of tailings dam structures, hence the additional layer of approval. And
None: were, it's never been on the critical path and we expect to have that wrapped up, you know, certainly concurrent with any feasibility study update.
None: But to put a little bit of color on your timeline, let's say the owners reached a decision in the middle of this year to update the feasibility study and an engineering firm would be contracted and that work would take 18 to 24 months.
None: and I think the path forward from there will be, we believe gold prices will be stronger in two years and that the owners will then be well positioned to make an informed decision and secure financing.
None: So I think certainly time is on our side. We've got some, all of the work we're doing this year ultimately
None: and a good deal of the work would be done in conjunction.
None: Okay, thanks. And on permitting, of course, it's encouraging to hear all the progress you've made, but if you decide to go with a pipeline option, is there any additional permitting that might be required, say, for example, along the route of the pipeline or something?
None: Well let me clarify that the permits for the pipeline are in place. That was included with the original permitting undertaking. So you can, we wouldn't need, let's say we decided to
None: defer the pipeline into the future, you wouldn't need to re-permit.
None: So when we permitted the project, we covered everything from the power plant to ports, the infrastructure, the gas pipeline. It was an all-encompassing effort that specifically addressed all the infrastructure.
None: So as long as we stay within the bounds of what's been approved, the permits are
None: in place for the activities that we see unfolding.
None: Okay, excellent. Thank you for that. So maybe just as a follow-up question then, I see your plan spend for 2024. You've got a strong balance sheet. You have a term deposit. Are there plans over the next year or so with potentially moving the term deposit around into cash or other forms on your balance sheet?
None: Well, you know, we've been as we manage our cash right now, we really look to optimize the interest we earn on that money. You know, a couple of years ago, that was virtually impossible. But in today's world.
None: We seek out good, safe ways to invest our treasury. Our budgets are pretty well defined, and we certainly free up cash as we need to to fund our ongoing activities.
None: Dave, is there anything you want to add to that?
Dave: No, we will...
Dave: likely just continue on the same course that we've been on and we'll have part of it in cash that earns interest and also in term deposits and it's just that we just take advantage of the rates at the time that they come due.
None: Okay, thank you very much. Good luck with Q2.
None: Thanks again.
None: So Greg, we have a few questions coming from online, from the webcast. And can you speak a bit about permitting, particularly as it relates to your experience in permitting in the U.S. and the appeals process and the ability for
Gregory A. Lang: for Donlan to proceed with development in light of permitting and these appeals.
Gregory A. Lang: I'll address that question and I guess really take a step back. I've been working in mining, particularly gold mining in the United States for almost 40 years.
Gregory A. Lang: and you know back in the early days you know permits
Gregory A. Lang: You can get your mind permitted in less than six months. And appeals were virtually unheard of. You know, over time, the process has certainly gotten more rigorous and, you know, more inclusive. And, you know, frankly, the changes, you know, I support them. I mean, you know, when you know,
Gregory A. Lang: When you set out to permit a project in Alaska or anywhere in the US, you know what you're getting into. It's a very defined, very rigorous process. And that's what we've experienced with Donlan and you can't hurry these things, you've got
Gregory A. Lang: and many more. So we have to be methodical and careful. The other aspect about permitting in the United States is invariably there will be a challenge
Gregory A. Lang: you know,
Gregory A. Lang: I've seen that for probably the last 15 years. I haven't been around a project that
Gregory A. Lang: did not get challenged. But every project that I've been involved with that got challenged did not get slowed down. You know, challenges are certainly a part of the process. We expected it from the beginning, and we had, you know, competent counsel with us every step of the way. And, you know, we've got a couple permits are under appeal. Every ruling to date has supported the process, and I think that will continue. So permitting, yes, it is complicated, but it's certainly doable. And once you have those permits, you're good.
None: Great, thank you Greg. The next one is would you consider buying back shares and if not, why?
Gregory A. Lang: Right now we are very focused on using our treasury to advance the Don and Gold project. That would be our inclination right now. But then again, we watch the markets. We think at current prices our shares do represent tremendous undervaluation. So we never rule anything out and we pay very close attention to the markets and what is happening. We also certainly stay in touch with our major shareholders.
Gregory A. Lang: But right now our focus has and will continue to be advancing the Donnan Project.
Gregory A. Lang: A bit in that same light, can you comment on the pressure on the share price and near-term catalysts to recover the value?
None: Well, it's, you know, the pressure on all of the gold stocks, particularly the development stocks, is
None: It's been pretty brutal this year and we're not, we're certainly sensitive.
None: to that.
None: and I think markets ebb and flow and the main thing that we do is we really
None: we focus on the thing
None: we can't control. We have a long track record of advancing the Donlin project through good markets, through bad markets, and we'll continue to remain focused on that main objective, which is taking the Donlin project up the value chain,
None: and ultimately to a construction decision and ultimately to construction. So we do watch the markets and we do watch the share price and we take that into consideration.
None: consideration and try not to get too frustrated because you can't control the markets. We can only do what we can do and we remain committed to our strategy of advancing Donland.
None: The last question coming from the webcast, can you speak about the Treasury and the last time you completed a financing and how you look at your cash position for the future needs of the company?
None: Sure, you know, our cash needs are
None: We have $118 million in cash and you can see from our projected spending that that's going to sustain the company for many years into the future. And we've got...
None: and, you know, cash on hand to fund our activities and ultimately a feasibility study.
None: Our last equity raise was in 2012. We raised $330 million at 950 a share.
None: and we've been very careful with our funds. Not many companies in the development space
None: can go well over 10 years without needing to go to the equity markets. And we don't see a need to do that anytime soon. And we're certainly mindful always of minimizing the dilution to our existing shareholder base.
None: Operator, that's all the questions from the podcast.
None: Thank you everybody for taking the time to join the call and get an update on NoveGold.
None: Thank you. This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
None: Thank you.
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