Q3 2024 NovaGold Resources Inc Earnings Call
Operator: Thank you for standing by.
Thank you for standing by this is the conference operator welcome to Noah go Chinese 24 third quarter financial results Conference call and webcast. As a reminder, all participants are in listen only mode.
Operator: This is the conference operator.
Operator: Welcome to the NOAA Gold 2024, third quarter financial results conference call and webcast. As a reminder, all participants are in listen-only mode. The conference is being recorded after the presentation.
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Melanie Hennessey: I would now like to turn the conference over to Melanie Hennessey, Vice President Corporate Communications. Please go ahead.
Speaker Change: I would now like to turn the conference over to Melanie Hennessey, Vice President corporate Communications.
Speaker Change: Please go ahead.
Greg Lang: Good morning, everyone, and thank you for joining us for NOAA Gold's third quarter financial results and for an update on the dominant gold project.
Melanie Hennessey: Good morning, everyone and thank you for joining us for Nova golds third quarter financial results and for an update on the Donlin Gold project.
Greg Lang: On today's call, we have NOAA Gold's President and CEO, Greg Lang, and Peter Adevack, NOAA Gold's 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.
Speaker Change: On today's call, we have novel Gold's, President and CEO, Greg Lang, and Peter Automath, Nava, Gold's, Vice President and CFO.
Speaker Change: At the end of the webcast, we will take questions by phone. Additionally, we will respond to questions received by email.
Greg Lang: I would like to remind everyone, 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—detailed in our various Edgar and Cedar filings and forward-looking disclaimers included in this presentation.
Speaker Change: I would like to remind everyone. I've 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.
Greg Lang: I will now turn the presentation over to our President and CEO, Greg Lang. Greg?
Speaker Change: I will now turn the presentation over to our President and CEO, Greg Lang Greg.
Greg Lang: Thank you, Melanie, and good morning, everyone. To begin today's call, I want to highlight why dominant gold is viewed as a Tier 1 asset by us and our shareholders, especially given the scarcity of high-quality projects in safe jurisdictions and the recent surge in the price of gold. Let's examine the impressive features of the Donland Gold project as detailed on slide five. Donland boasts 39 million ounces of gold and an average grade of two and a quarter grams per tonne, more than double the industry average. With the projected mine life of nearly three decades based on our known resources, Donland Gold promises a long-term stable and low-cost operation that would be one of the leading producers in the industry with substantial exploration potential for future growth.
Greg Lang: Thank you Melanie.
Greg Lang: Good morning, everyone.
Greg Lang: To begin today's call I want to highlight why donlin gold.
Speaker Change: U S tier one asset.
Greg Lang: Oh.
Greg Lang: And our shareholders.
Greg Lang: Especially given the scarcity of high quality projects.
Safe jurisdictions.
Greg Lang: And the recent surge in the price of gold.
Greg Lang: Let's examine the impression features of the Donlin Gold project is detailed on slide five.
Greg Lang: Donlin, both 39 million ounces of gold at an average grade of two in a quarter grams per ton.
Greg Lang: More than double the industry average.
Greg Lang: With the projected mine life of nearly three decades based on our known resources.
Greg Lang: Donlin gold promises of long term stable and low cost operation that would be one of the leading producers in the industry.
With substantial exploration potential.
For future growth.
Greg Lang: Yeah.
Greg Lang: Next by an experience management team with a proven track record in mind development across the Americas, Donland Gold has secured the necessary federal permits and the majority of the state permits, demonstrating its readiness for successful advancement. Donland is situated on private land, designated for mining. in one of the world's top jurisdictions. This reinforces our social license to operate through our long-standing partnerships with Chilista and TKC. Together, these factors positioned Onland Gold as a cornerstone project with significant long-term value and strong potential. One of the standout features of Donland Gold is its ranking among the largest and highest-grade undeveloped open pit reserves worldwide, particularly compared to other gold projects in the Americas as depicted on slide six.
Greg Lang: Backed by an experienced management team with a proven track record in mine development across the Americas.
Greg Lang: Donlin gold has secured unnecessarily federal permits and.
Greg Lang: And the majority of the state permits demonstrating readiness for successful advancement.
Greg Lang: I'm Gonna situated on private land designated for mining and one of the worlds top jurisdictions.
Reinforces our social license to operate through our long standing partnerships, which Arista and teekay seat.
Greg Lang: Together these factors position Donlin gold as the cornerstone project with significant long term value and strong potential.
Greg Lang: One of the standout features of Donlin gold is its ranking among the largest and highest grade undeveloped open pit reserves worldwide.
Greg Lang: Particularly compared to other gold projects in the Americas as depicted on slide six.
Greg Lang: As global gold production continues to decline, the industry faces a shortage of high-quality development stage projects. This creates a heightened demand for projects that are characterized by scale, grade, and longevity, qualities that are vital to successfully navigating various gold price cycles. Moreover, with a grade of two and a quarter grams, more than double the industry average for open pit projects, as illustrated on slide seven, Donland is poised to become one of the most cost-effective producers in the gold industry. Currently ranked third out of 120 global jurisdictions and only one of 12 to achieve a AAA rating in the World Risk Report by the Mining Journal, Alaska is renowned for its strong and secure environment, especially in the mining sector as shown on slide eight.
Greg Lang: Global Gold production continues to decline the industry faces a shortage of high quality development stage projects.
Greg Lang: This creates a heightened demand for projects that are characterized by scale.
And longevity.
Greg Lang: All of these that are vital.
Greg Lang: To successfully navigating various gold price cycles.
Greg Lang: Moreover, with a grade of two in a quarter grams within double the industry average for open pit projects as illustrated on slide seven.
Greg Lang: <unk> is poised to become one of the most cost effective producers in the gold industry.
Greg Lang: Currently ranked third out of 120 global jurisdictions and only one of 12 to achieve a AAA rating in the world risk report by the mining Journal.
Greg Lang: He is renowned for its strong and secure environment, especially in the mining sector as shown on slide eight.
Greg Lang: This reputation not only boosts investor confidence but lines perfectly with the promising attributes of Donland Gold. Second largest gold producer in the United States, Alaska's robust regulatory framework and commitment to responsible development creates a supportive climate. On slide nine, we highlight the significant contributions of Chilista and TTC as private landowners and key Donland partners. Their commitment closely aligns with the elders' vision of responsible growth, emphasizing job creation, economic prosperity, and the preservation of cultural heritage within the local communities. With land designated for mining activities over 50 years ago, their stewardship exemplifies a strong dedication to sustainable development.
Greg Lang: This reputation not only boost investor confidence.
Greg Lang: <unk> perfectly with the promising attributes of Donlin gold.
Greg Lang: Second largest gold producer in the United States.
Greg Lang: <unk> robust regulatory frameworks.
Greg Lang: And commitment to responsible development.
Greg Lang: Supportive climate.
On slide nine we highlight the significant contributions of <unk> and T J C.
Speaker Change: Private landowners T Donlin partners.
Speaker Change: Their commitment closely aligned with the elders vision of responsible growth.
Speaker Change: <unk> job creation economic prosperity, and the pressure Asian cultural heritage within the local communities.
Speaker Change: With land designated for mining activities over 50 years ago their stewardship.
Speaker Change: Exemplifies our strong dedication to sustainable development.
Greg Lang: Throughout the permitting process, sustainability initiatives and community engagement efforts to list it and TTC have provided invaluable experience. Leveraging their deep understanding of the land's economic importance to enhance community well-being. Their partnership is crucial for the responsible development of the Donland Gold Project at every phase, reinforcing its potential as a cornerstone of lasting economic development in the YK region for future generations. Moving to slide 10, we outlined Donland's robust permitting status. Federal permits and most of the state permits in hand, we continue to support the agencies in maintaining permits and good spending and defending the permits against legal challenges, ensuring the project's ongoing approval.
Speaker Change: Throughout the permitting process sustainability initiatives and community engagement efforts.
Speaker Change: And TK she had provided invaluable experience.
Speaker Change: Leveraging our deep understanding of the lands economic importance to enhance community wellbeing.
Speaker Change: The partnership is crucial for the responsible development of the Donlin Gold project at every phase.
Speaker Change: Reinforcing its potential as a cornerstone of lasting economic development.
Speaker Change: The Y K region for future generations.
Moving to slide 10, we outline garlands robust permitting status.
Speaker Change: Federal permits and most of the state permits in hand, we continue to support the agency's maintaining permits in good standing and defending the permit against legal challenges.
Speaker Change: During the project ongoing approval.
Speaker Change: Yeah.
Greg Lang: The permitting process in Alaska involves extensive shareholder engagement, particularly within the local communities. While navigating neuro-stictional capacities can be demanding, Alaska's political and social stability provides a reassuring investment environment, reinforcing our commitment to managing the regulatory processes effectively. Turning to slide 11, Nova Gold is backed by a veteran management team with proven track records in mine development throughout the Americas. Our team brings expensive experience with leading gold producers and possesses deep knowledge in building and operating large steel open pit and underground mines. Significant exploration opportunities exist well beyond the defined resources in the Atma and Lewis pits, as illustrated in the graphic on the corner of slide 12, covering only three kilometers of an approximate eight kilometer gold bearing trend.
Speaker Change: The permitting process in Alaska involves extensive shareholder engagement.
Speaker Change: Particularly within the local communities.
Speaker Change: While navigating giroud stick snow comped cities can be demanding.
Speaker Change: Last year's political and social stability provides a reassuring investment environment.
Speaker Change: Reinforcing our commitment to managing the regulatory processes effectively.
Speaker Change: Turning to slide 11.
Speaker Change: No one called is backed by a veteran management team with proven track Records and mine development throughout the Americas.
Speaker Change: Our team brings extensive experience with leading gold producers.
Speaker Change: That's with deep knowledge in building and operating <unk>.
Speaker Change: Large scale open pit and underground mines.
Speaker Change: Significant exploration opportunities exist well beyond the defined resources in the asthma and Lewis pits as illustrated in the graphic on the corner of slide 12.
Speaker Change: Only three kilometers of an approximate eight kilometer gold bearing trend the resource underscores the substantial potential to increase ounces and extend the mine life through ongoing exploration.
Greg Lang: The resource underscores the substantial potential to increase ounces and extend the mine life through ongoing exploration. On slide 13, the chart illustrates the post-tax net present value at various gold prices. With today's gold price approaching the upper end of the chart, this reflects the value of over $30 billion as your discount rate or approximately $11 billion at a 5% discount rate. This projection underscores downlinked substantial economic potential in the current gold price environment.
Speaker Change: On slide 13.
Speaker Change: The chart illustrates the post tax net present value at various gold prices.
Speaker Change: With today's gold price approaching the upper end of the chart. This reflects the value of over $30 billion and zero discount.
Speaker Change: <unk>.
Speaker Change: Our approximately $11 billion at a 5% discount rate.
Speaker Change: This projection underscores donlin substantial economic potential in the current gold price environment.
Greg Lang: I will now discuss the third quarter milestones reached and the ongoing project activities. During the third quarter, we have met several key activities as outlined on slide 15. First, our resource model is actively being updated and nearing conclusion. We have made substantial advancements in our metallurgical testing at a pilot plant in Ontario, Canada, aimed at validating optimizations to the flow sheet, which we anticipate completing toward the end of this year. Additionally, our work on the dam safety certification is moving forward, with most preliminary design packages already submitted to the Alaska Department of Natural Resources in June and expectively finalized by year end.
Speaker Change: I will now discuss the third quarter milestones reached and the ongoing project activities.
Speaker Change: During the third quarter.
Speaker Change: We advanced several key activities as outlined on slide 15.
Speaker Change: First our resource model is actively being updated and nearing conclusion.
Speaker Change: We have made substantial advancements.
In our metallurgical testing at a pilot plant in Ontario, Canada aimed at validating optimizations to the flow sheet, which we anticipate completing.
Towards the end of this year.
Speaker Change: Additionally, our work on the dam safety certification is moving forward with most preliminary design packages already submitted to the Alaska Department of natural resources in June.
Speaker Change: To be finalized by year end.
Greg Lang: We anticipate receiving feedback on these packages in 2025. Furthermore, we are updating our groundwater and surface water models by incorporating the latest field data from geoscience hydrology and gathering data to refine the geochemical characteristics for future operational planning. These technical activities and ongoing efforts have delivered highly valuable insights for the Donland board and its owners and will continue to contribute critical data to guide our strategy in advancing the project.
Speaker Change: We anticipate receiving feedback on these packages in 2025.
Speaker Change: Furthermore, we are updating our groundwater and surface water models by incorporating the latest field data from geoscience hydrology and gathering data to refine the geochemical characteristics for future operational planning.
Speaker Change: These technical activities and ongoing efforts have delivered highly valuable insights for the Donlin board and its owners and we will continue to contribute critical data to guide our strategy and advancing the project.
Greg Lang: As we move to slide 16, I'd like to highlight our ongoing collaborations with Gelista, TKC, and local leaders in education, community health, cultural preservation, and environmental stewardship across the 62 Yukon Pesticwim communities. Our enduring partnerships with Gelista and TKC have been essential for advancing project development and permitting. Through our commitment to engaging with these communities, we have built meaningful relationships, enhanced investments, and strengthened our social license. In July, we hosted a site tour for residents of Crooked Creek and the Native Village of Georgetown. Along with Gelista and TKC, we held a public open house in Anchorage, Alaska, providing local Alaskans the chance to learn more about the project and engage in open discussions.
Speaker Change: As we move to slide 16.
Speaker Change: The highlight our ongoing collaborations with <unk> T.
Speaker Change: T K C and local leaders and education community health cultural preservation and environmental stewardship across the 62, Yukon Kuskokwim communities.
Speaker Change: Our enduring partnership with Jewish too and Teekay Sea have been essential for advancing project development and permitting.
Speaker Change: Through our commitment to engaging with these communities we have built meaningful relationships.
Speaker Change: <unk> investments in <unk>.
Speaker Change: Strengthened our social license.
Speaker Change: In July.
Speaker Change: We hosted a site tour for residents of Crooked Creek, and the native village of Georgetown.
Speaker Change: Along with Calista and T K C.
Speaker Change: Held a public open house in Anchorage, Alaska, providing local.
Speaker Change: <unk> the chance to learn more about the project and engage in open discussions.
Greg Lang: The Donland team continues to actively monitor and survey salmon fisheries in the Yukon and Cuspicwim watersheds. Notably, during the third quarter, we partnered with the village of Nepimute and launched a salmon smoke monitoring program on the George River, which is a tributary of the Cuspicwim River, to assess small health and migration patterns. We proudly supported the in-it for the long haul, back-haul program for the seventh year, removing and recycling over 140,000 pounds, hazardous household materials, and electronic waste for a total of almost 800,000 pounds. Williams, since the program began in 2018. Turning to slide 17, progress on the Dan Safety Certification continued in Q3, with the majority of the preliminary design packages submitted to the Alaska Department of Natural Resources in June.
Speaker Change: The Donlin team continues to actively monitor and survey salmon fisheries in the Yukon and Pascal corn watersheds.
Speaker Change: Notably during the third quarter.
Speaker Change: We partnered with the village a pie mute and launched the salmon smoke monitoring program on the George River.
Speaker Change: You should tributary of the Kuskokwim River to assess smoked health and migration patterns.
Speaker Change: We proudly supported.
Speaker Change: And it for the long haul backhaul program for the seventh year.
Speaker Change: We're moving and recycling over 140000 pounds hazardous household materials and electronic waste for a total of almost 800000 pounds. Since the program began in 2018.
Speaker Change: Turning to slide 17.
Speaker Change: Progress on the dam safety certification continued in Q3 with the majority of the preliminary design packages submitted to the Alaska Department of natural resources in June.
Greg Lang: We anticipate completing this process by year-end. In terms of state litigation, regarding Donald's water rights, permits, and the state pipeline right-of-way these, briefing has been completed, and oral arguments have been issued and scheduled for November 12th. All other state cases have been fully briefed. In federal litigation on the joint record of decision including the 404 permit and the Bureau of Land Management right-of-way, subsequent quarter end on September 30th, the court issued a decision upholding the federal agency's analysis of two of the three issues raised in the litigation. Over the court agreed with the plaintiffs that the federal agencies took too narrow of view in analyzing the impact of a theoretical release from the storage tailings facility.
Speaker Change: We anticipate completing this process.
Speaker Change: Year end.
Speaker Change: In terms of state litigation regarding downloads water rights permits in the state pipeline right away. These briefing has been completed and oral arguments have been issued and scheduled for November 12.
Speaker Change: All the other state cases have been fully briefed.
Speaker Change: And federal litigation on the joint record of decision, including the 404 permit and the Bureau of land management right away. So that's good.
Speaker Change: Quarter end on September 30th.
Speaker Change: The court issued a decision upholding the federal agencies analysis of two of the three issues raised in the litigation.
Speaker Change: Read the court agreed with the plaintiffs the federal agencies.
Speaker Change: Took too narrow a view in analyzing the impact of a theoretical release from the storage tailings facility.
Greg Lang: The court did not vacate the permits and ordered a supplemental briefing on the appropriate remedy, which is scheduled to be completed in early November. With a deep understanding of the regulatory landscape, Donald and his partners are dedicated to supporting federal and state agencies in overcoming the various challenges to the project's permits. We recognize the importance of meticulous preparation and organization in navigating the rigorous permitting processes in both the United States and Alaska. Our state-fast commitment drives us to collaborate closely with these agencies to greatly value the bipartisan support and engagement for the Donald and Gold Project, both in Alaska and in Washington, D.C.
The court did not vacate the permits and ordered a supplemental briefing on the appropriate remedy.
Speaker Change: Which is scheduled to be completed in early November.
Speaker Change: With a deep understanding of the regulatory landscape Donlin and its partners are dedicated to supporting federal and state agencies in overcoming various challenges to the project permits.
Speaker Change: We recognize the importance of meticulous preparation and organization and navigating the rigorous permitting processes in both United States and Alaska.
Speaker Change: Our steadfast commitment drives us to collaborate closely with these agencies.
Speaker Change: Greatly value the bipartisan support and engagement for the Donlin Gold project both in Alaska.
Speaker Change: And in Washington D C.
Peter Adevack: With that, I will now turn the call over to Peter Atomant to review the Q3 financial results. Peter?
Peter adamant: With that I will now turn the call over to Peter adamant.
To review the.
Peter adamant: The Q3 financial results Peter.
Peter adamant: Peter.
Peter Adevack: Thank you, Greg. Slide 19 highlights our operating performance. We reported in that loss of 10.7 million in the third quarter of 2024, a 0.4 million decrease from the comparative prior year quarter, primarily due to lower stock-based compensation expense related to the fourth issue of options and performance share units, and lower Donald and Gold Project costs with no fuel program this year.
Peter: Thank you Greg.
Speaker Change: Slide 19 highlights our operating performance.
Speaker Change: We reported a net loss of $10 7 million in the third quarter of 2024 0.4 million decrease from the comparative prior year quarter, primarily due to <unk>.
Speaker Change: Lower stock based compensation expense related to forfeiture options and performance share units and lowered Donlin gold project costs with no fuel program. This year. This was partially offset by increased interest expense on the promissory note.
Peter Adevack: This was partially offset by increased interest expense on the cash and term deposits, an increased general and administrative costs due to hiring of additional staff, along with higher professional and consulting. Davies. Slide 20 highlights our cash flows. In the third quarter of 2024, cash and termed deposits decreased by $7 million, primarily due to corporate administrative expenses and our share of Donlin Gold funding, partially offset by interest income and changes in working capital. On slide 21, we highlight our strong treasury. Our financial position includes cash and cash equivalents of $45.6 million and termed deposits of $60 million.
Speaker Change: Lower interest income on cash and term deposits and increased general and administrative costs due to hiring of additional staff, along with higher professional and consulting fees.
Speaker Change: Slide 20 highlights our cash flows in the third quarter of 2020 for cash.
Speaker Change: Cash and term deposits decreased by $7 million, primarily due to corporate administrative expenses and our share of Donlin golds funding, partially offset by interest income and changes in working capital.
Speaker Change: Yeah.
Speaker Change: On slide 21, we highlight our strong treasury.
Our financial position includes cash and cash equivalents of $45 6 million and term deposits of $60 million.
Peter Adevack: Year-to-date, Nova Gold's corporate GNA costs and Donlin Gold funding are in line with our 2024 budget. For the full year, we continue to expect to spend approximately $31 million, including approximately $17 million for corporate GNA and $14 million for Donlin Gold.
Year to date, Nova Gold's corporate G&A costs, and Donlin gold funding are in line with our 2020 for budget.
Speaker Change: For the full year, we continue to expect to spend approximately 31 million, including approximately $17 million for corporate G&A and $14 million for Donlin gold.
Greg Lang: With that, I will now turn the presentation back over to Greg. Thank you, Pierre. Thanks, Pierre.
With that I will now turn the presentation back over to Greg.
Greg Lang: Thank you Peter.
Greg Lang: Steps put to the quarter. Eric and Nova Gold held their annual workshop in Alaska to review the work completed to date, discuss the related 2025 activities, and look at the next steps for the project. We remain on budget, focused on completing project-related activities, and advancing the Donlin Gold project to an updated feasibility study to be optimally positioned to maximize the benefits for all stakeholders and shareholders. With total confidence, Nova Gold views the Donlin Gold project as a prime investment in the gold markets, an exceptional opportunity to leverage scarce, high-quality assets and safe jurisdictions. We deeply appreciate the unwavering support and trust of our long-term shareholders, whose commitments and guidance have been instrumental in the company's success.
Greg Lang: Subsequent to the quarter.
Eric and Nova Cold held their annual workshop in Alaska.
Speaker Change: To review the work completed to date disc.
Speaker Change: Discuss the related 2025 activities and look at the next steps for the project.
Speaker Change: We remain on budget.
Speaker Change: Focused on completing project related activities and advancing the Donlin gold project to an updated feasibility study.
Speaker Change: To be optimally positioned to maximize the benefits for.
Speaker Change: We're all stakeholders and shareholders.
Nova Gold: With total confidence Nova cold views the Donlin Gold project is a prime investment in the gold market.
Speaker Change: Except general opportunity to leverage scarce.
Speaker Change: High quality assets in safe jurisdictions.
Speaker Change: We deeply appreciate the unwavering support.
Speaker Change: And trust of our long term shareholders.
Speaker Change: Commitments and guidance have been instrumental in the company's success.
Greg Lang: Their decision to invest in their ongoing engagement is invaluable to us. We remain focused on executing our standard strategy with the highest standards of safety and social responsibility, all while delivering progress to enhance shareholder and stakeholder value.
Speaker Change: Their decision to invest in their ongoing engagement are invaluable to us.
Speaker Change: We remain focused on executing our status strategy towards the highest standards of safety and social responsibility.
Speaker Change: All while delivering progress.
Speaker Change: To enhance shareholder.
Speaker Change: Stakeholder value.
Greg Lang: Thank you.
Speaker Change: Thank you.
Operator: Operator, we are now prepared to take questions. Thank you.
Speaker Change: Operator, we are now prepared to take questions.
Speaker Change: Thank you.
Operator: We will now begin the question and answer session.
Speaker Change: Now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad.
Operator: To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speaker phone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then two.
Speaker Change: The Airtel and acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any keys given Jai a question. Please press Star then two.
Lucas Pipes: The first question comes from Lucas Pikes with Be Ravi Securities. Please go ahead.
Speaker Change: The next question comes from Lucas pipes with B Riley Securities. Please go ahead.
Lucas Pipes: Thank you very much, operator.
Speaker Change: Thank you very much brighter visit that feathers Shabalin asking question on behalf of Lucas pipes.
Lucas Pipes: This is a feather shabbling asking question because of Lucas Pikes.
Lucas Pipes: Greg, you mentioned that the final documents expected to be submitted by the year end, and comments on them safety tier anticipated in 2025.
Speaker Change: Greg you mentioned that the final documents.
Speaker Change: Expect it to be submitted by year end and comments on dam safety are anticipated in 2025.
Greg Lang: So, is this the only major permit left for you? And if so, do you have an estimate of when in 2025 you would expect to receive it. Thank you.
Speaker Change: So is this the only major permits left for you and if so do you have.
Speaker Change: An estimate of when in 2025, you you would expect to receive it. Thank you.
Greg Lang: All right. Well, thank you for draining the call on behalf of Lucas. You'll be the tailings dam and related water retention structures are the last remaining permit that the project needs of all the major permits.
Speaker Change: Alright, well, thank you for joining the call on behalf of Lucas.
Speaker Change: The tailings dam and related water retention structures are the last remaining permit that.
Speaker Change: Roger needs of all of the major permits and yeah. We have waited a deliberately till this stage to do them. This permit because it's fairly costly undertaking with a lot of geotechnical drilling and it really is not on the critical path.
Greg Lang: And, you know, we have waited deliberately till this stage to do this permit because it's a fairly costly undertaking with a lot of geotechnical drilling, and it really is not on the critical path. So, you know, now that we're, you know, nearing decision points, we've felt it appropriate to advance the dam safety certifications. You know, it's a pretty rigorous process in Alaska. You know, we're filing all the preliminary design packages now that will be reviewed by the state. And we anticipate approval, probably in a year, year and a half, you know, well in advance of, you know, our decisions on the project.
Speaker Change: So now that we're nearing decision quite we felt it appropriate to advance the dam safety certifications.
Speaker Change: A pretty rigorous process in Alaska.
Speaker Change: We're filing all the preliminary design packages now they'll be reviewed by the state and we anticipate approval probably in a year year and a half.
Speaker Change: Well in advance.
Speaker Change: You know our decision on the project. So the permits are in hand, we're moving forward and it's not on the critical path for development.
Greg Lang: So, you know, the permits are in hand; we're moving forward, and it's not on the critical path for development. Thank you.
Lucas Pipes: Got your thanks a lot.
Thank you got you. Thanks, a lot and my second one is on.
Lucas Pipes: And my second one is on, is on your update on feasibility study in future. So, with current goal prices, with current high goal prices, would you consider reflecting, or reflect on these in the updated feasibility study?
Speaker Change: As an update on the feasibility study in the future so.
Speaker Change: With current gold prices.
Speaker Change: High gold prices would you consider reflecting reflecting these in the web data feasibility study.
Greg Lang: Well, we've, you were working, we just completed our annual workshop with our partner.
Mark Bristow: Well, we've no we're working with just completed our annual workshop with our partner have been Alaska, Mark Bristow and I attended that and that's the time of year, where we lay out the plans for 2025 and that will.
Greg Lang: I've been in Alaska, Mark, Bristol, and I attended that. And that's the time of the year where we lay out the plans for 2025. And that will, you know, certainly the price of gold is intriguing right now and helps projects like Donald and move forward. So, we will be guiding on our 2025 work plan toward the end of this year, with our, and in early next year, with our ongoing budget presentations. So, you know, expect more from us early in the new year or late this year on the 2025 planned activities. Got you.
Mark Bristow: Gold is intriguing right now and helps.
Mark Bristow: Projects like Donlin move forward.
Speaker Change: We would be guiding our on our 2025 work plan towards the end of this year with our and then early next year with our ongoing budget presentation. So yeah I expect more from US early in the new year or late this year on the 2025 planned activities.
Lucas Pipes: Thanks so much.
Got you. Thanks, so much and then the last one if you if you allow me to squeeze.
Lucas Pipes: And the last one, if you allow me to squeeze, regarding 2025 on CAPEX. So, it's a clear picture for the rest of 2024, but what about 2025? And what's, what's the current cash burn rate? And yeah, and if, when you, when we would expect guidance for CAPEX for the next year, thank you very much.
Speaker Change: I've got it in 2025.
Speaker Change: On Capex. So it's it's clear picture for the rest of 2024, but what about 2025 and what's what's the current cash burn rate and yeah, and if you when you when we would expect guidance for Capex for next year. Thank you very much.
Greg Lang: All right. Well, as Peter highlighted in this presentation, your treasury is still very strong with over $100 million. Now, burn rate, I would anticipate it going up next year with increased activity.
Speaker Change: All right well as Sir Peter highlighted in his presentation you our treasury is.
Speaker Change: Still very strong with over $100 million.
Speaker Change: Burn rate I would anticipate it going up next year with the increased activity. This year was about $30 million you might see that up a little higher next year, but at any rate we have sufficient cash on hand to continue to advance the Donlin project.
Greg Lang: An issue is about $30 million. You might see that up a little higher next year. But at any rate, we have sufficient cash on hand to continue to advance the dominant project.
Greg Lang: Thanks, Greg.
Speaker Change: Thanks, Greg I appreciate all the detail and continued best of luck.
Lucas Pipes: I appreciate all the details and continue the best of luck. Thank you.
Greg Lang: Thank you.
Unknown Attendee: We have one question coming from the webcast, Greg. And can you speak to the different studies that have been done in the staged approach for the advancement of Donlin? Sure. You know, Donlin, as originally envisioned and as permitted, was a large-scale, open-pit project with a rate of approximately 53,000 tons a day.
Speaker Change: We have one question coming from the webcast Greg.
Speaker Change: And can you speak to the different studies that have been done in a staged approach for the for the advancement of Donlin.
Speaker Change: Sure Yeah Donlin.
Speaker Change: As originally envisioned and as permitted with the large scale open pit project with.
No rate of approximately 53000 tonne a day.
Greg Lang: Over the years, we have considered various scenarios for Donlin, which include building the project in stages to minimize the upfront capital burden. You know, we would look at it as a, you know, build it in two stages: maybe half now, half later. So we've considered many alternatives, and we will continue to advance, you know, various alternatives to optimize our investment in the project when we go to update our feasibility.
Speaker Change: Over the years, we have considered various scenarios for donlin, which including building the project in stages to minimize the upfront capital burden, we would look at it and build it in two stages, maybe half now half of the year. So we've considered many alternatives and we will continue to advance.
So alternatives to optimize our investment in the project when we go to update our feasibility study.
Great No further questions from the webcast.
Unknown Attendee: Thank you for taking the time to get an update on Novacold, and we look forward to providing continued updates as your progressives. Have a good day.
Speaker Change: Okay.
Speaker Change: Everyone. Thank you for taking the time to give you an update on Nova Cold and we look forward to providing continued updates as the year progresses.
Speaker Change: Good day.
Operator: This brings to close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.
Speaker Change: This brings to close today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].