Q2 2025 NovaGold Resources Inc Earnings Call
Thank you for standing by this is the conference operator, welcome to the <unk> second quarter 2025 financial results conference call and webcast.
Thank you for standing by.
Operator: This is the conference operator. Welcome to the NoveGold Second Quarter 2025 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, then zero. Webcast viewers may submit questions through the text box in the lower right corner of the webcast frame. Should you need assistance during the conference call, you may signal the operator for pressing star then zero.
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 question John.
He joined the question queue you May Press Star then one on your telephone keypad do.
Should you need assistance during the conference call you may signal, an operator by pressing star zero.
Of course, you may submit questions through the text box in the lower right corner of the webcast Spain.
Should you need assistance during the conference call operator by pressing Star then zero.
Speaker Change: I would now like to turn the conference over to Melanie Hennessey, Vice President Corporate Communications. Please go ahead.
Melanie Hennessey: I would now like to turn the conference over to Melanie Hennessey, Vice President, Corporate Communications. Please go ahead. Thank you, Aisha.
Speaker Change: Thank you Asia and good morning, everyone.
Melanie Hennessey: Good morning, everyone. Thank you for joining us on NoveGold 2025 second quarter webcast and conference call and also for an update on the Donald Gold Project.
Thank you for joining us on Nova goal 2025 second quarter webcast and conference call and also for an update on the Donlin Gold project.
Melanie Hennessey: On today's call we have NoveGold's Chairman, Dr. Kaplan, NoveGold's President and CEO, Greg Lang. and NoveGold. Vice President and CFO, Peter Adamek.
On today's call, we have knowable, Chairman Doctor Kaplan, Nova Gold's, President and CEO, Greg Lang.
And no votes.
Speaker Change: Vice President and CFO.
Speaker Change: Peter out of it.
Melanie Hennessey: At the end of the webcast, we will take questions by phone. Additionally, we will respond to questions received by email.
Speaker Change: 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 you as stated on slide three any statements made today may contain forward looking information.
Melanie Hennessey: I would like to remind you, 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 CDER filings, and forward-looking disclaimers included in this presentation.
Speaker Change: 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.
Speaker Change: I will now turn the presentation over to our chairman Doctor Koplan.
Dr. Kaplan: I will now turn the presentation over to our chairman, Dr. Kaplan. Thank you, Melanie. It gives me great pleasure to be able to introduce the reintroduction of NoveGold into the gold development space.
Okay.
Doctor Koplan: Thank you Melanie.
Doctor Koplan: At it gives me great pleasure to be able to introduce the reintroduction of Nova gold into the gold development space.
Dr. Kaplan: If you look at the first chart, which we've put up, you will notice that for many, many years. The trajectory of NoveGold was as perhaps the most highly rated gold development stock in the GDXJ. There were a number of reasons for this, but I want to put this into context for the simple reason that if you look at this chart, what you see is that Going back as recently as 2021, NoveGold's share price was $12. The company was a $4 billion market cap. We were on our way to updating our feasibility study, which we believe very strongly would have led already to a construction decision.
Speaker Change: If you look at the first chart, which we've put up you will notice that.
For many many years the.
Speaker Change: Trajectory of Nova Cold was as perhaps the most highly rated gold development stock.
Speaker Change: In the Gtx Jade.
There are number of reasons for this but I want to put this into context for the simple reason that if you look at this chart what you see is that.
Speaker Change: Going back as recently as 2021 Novo gold share price was $12. The company was a $4 billion market cap.
We were on our way to updating our feasibility study.
Which we believe very strongly would have led already to a construction decision.
As a consequence of a relationship or a fraught relationship.
Dr. Kaplan: As a consequence of a relationship or a fraught relationship with our then partner, we were at an impasse. That impasse, in turn, led essentially to NoveGold being, if not dead money, then comatose.
With our then partner we were at an impasse that impasse in turn led to essentially to Nova cold being if not dead money then comatose.
Dr. Kaplan: This is extremely important to understand. There's no doubt in our minds that what has transpired over the last quarter is going to allow us not only to revive, but also once again to surpass the... the highs that we had at $12 to $15 as recently as five or six years ago.
Speaker Change: This is extremely important to understand.
There's no doubt in our minds that what has transpired over the last quarter is going to allow us not only.
Speaker Change: To revive but also once again to surpass the.
Speaker Change: The highs that we had at 12 to $15 as recently as five or six years ago. This is our agenda, what you're going to hear over the course of this call is that the.
Dr. Kaplan: This is our agenda. What you're going to hear over the course of this call is that the company now, having removed the one headwind that it had in the context of so many tailwinds, not least of which is the gold price, but also facts on the ground, drilling successes, permitting successes and the like, we want to re-establish not just a practice of being able to go back to taking Donlan up the value chain, but also re-establishing our valuation. In this, I can tell you, we will be absolutely uninhibited. As far as we're concerned, we will get back to the $12 to $15 range, which was status quo ante before 2020.
Speaker Change: The company now having removed the one headwind that it had.
In the context of so many tail winds not least of which is the gold price, but also facts on the ground drilling successes permitting successes and the like we wanted to reestablish not just a practice of being able to go back to taking donlin.
Speaker Change: Up the value chain, but also reestablishing our valuation.
Speaker Change: And this I can tell you we will be absolutely uninhibited as far as we're concerned we will get back to the 12 to $15 range, which was status quo empty before 'twenty 'twenty and more than that we will then make up for the lost time considered.
Dr. Kaplan: More than that, we will then make up for the lost time, considering that the gold price at that time was thousands of dollars less than where it is today.
Speaker Change: That the gold price at that time was thousands of dollars less than where it is today.
Dr. Kaplan: Here are the reasons why, if I can ask to go to the next slide.
Speaker Change: Here are the reasons why if I can ask to go to the next slide.
Speaker Change: Let's ask ourselves the question.
Dr. Kaplan: Let's ask ourselves the question. What is it that has enabled me or the Electrum Group, which is our holding company in which it's my family, shareholder capital, and sovereign wealth funds, who are only outside shareholders, what is it that over 17 years, has not only not resulted in deal fatigue, but has actually resulted in greater enthusiasm than ever before. And enthusiasm, which has been reinforced and reaffirmed by an enormous investment by our new partner, which is Paulson Advisor. Ask yourself the question, what is it that propels Electrum with a very, very, very strong multi-decade track record in taking category killer assets up the value chain, but also now Polson Advisors to purchase 40% economic interest in Donlan itself for $800 million.
Speaker Change: What is it that.
Speaker Change: <unk> has enabled me or the Electrum group, which is our holding company in which it's my family shareholder capital and sovereign wealth funds, who are our only outside shareholders what is it that.
Speaker Change: Over 17 years.
Speaker Change: It has not only not resulted in deal fatigue, but has actually resulted in greater enthusiasm than ever before and enthusiasm, which has been reinforced and reaffirmed by an enormous investment by our.
Speaker Change: New partner, which is Paulson advisors.
Speaker Change: Ask yourself the question what is it that propel.
Speaker Change: Propels electrum with a very very very strong multi decade track record in taking category killer assets up the value chain, but also now polson advisors to purchase 40% economic interest in Donlin itself.
Speaker Change: For $800 million.
Speaker Change: Let's go through these attributes.
Dr. Kaplan: Let's go through these attributes.
Dr. Kaplan: In fact, let's take one step back. prior to our becoming with our part. I would ask the question, and this contributed no doubt to our premium valuation.
Speaker Change: In fact, let's take one step back.
Speaker Change: Prior to our becoming in stasis.
Speaker Change: With our partner.
Speaker Change: I would ask the question and this contributed no doubt two hour.
Speaker Change: Premium valuation.
Dr. Kaplan: Is there any other gold development story in the world today? which has the following combination. of Attribute. If not, then I think it's fair to say that Donlan is unique in the gold space. These are the reasons why Electrum and Paulson Advisors and a very, very, very high quality, sophisticated, smart money shareholder base. invests in NoveGold. First of all, It's possible that there's never been a gold mining story which began with 40 million ounces. For sure, there has not been one for many, many years, which began with an average production over the nearly three decades of initial mine life of well over a million ounces of gold.
Speaker Change: Is there any other bold development story in the world today.
Speaker Change: Which has the following combination of attributes.
Speaker Change: If not then I think it's fair to say that Donlin is unique in the gold space. These are the reasons why electrum.
Speaker Change: And Olson advisors.
Speaker Change: And a very very very high quality sophisticated smart money shareholder base.
Speaker Change: Invests in Nova gold.
Speaker Change: First of all.
Speaker Change: It's possible that there's never been a gold mining story, which began with 40 million ounces.
Speaker Change: For sure there has not been one for many many years, which began with a average production over the nearly three decades of initial mine life.
Speaker Change: <unk> of well over a million ounces of gold.
Dr. Kaplan: I want to also put that into perspective because you will probably be hearing about this and it does change some of the calculus of analysis going forward. The first ten years of production are actually 1.4 million ounces on average. 1.5 in the first five years. We start with decades of mine life and we believe, for reasons that you'll hear, that we have the potential to add decades more. This gives us the possibility that within that 10-year time frame, we will be able to position ourselves so that we will maintain the 1.4 million ounces annually. So we can start with an amortization, but the reality is it's the nature of the size of the ore body and the quality of the ore body that allows us to be able to think of this as being a 1.4, 1.5 million ounce gold producer for decades to come.
Speaker Change: I want to also put that into perspective, because you will probably be hearing about this and it does change some of the calculus of analysis going forward. The first 10 years of production are actually 1.4 million ounces on average 1.5 in the first five years.
Speaker Change: We start with decades of mine life, and we believe for reasons that Youll hear that we have the potential to add decades more this gives us the possibility that within that 10 year time frame, we will be able to position ourselves. So that we will maintain the 1.4 million ounces.
Speaker Change: Is annually. So we can start with an amortization, but the reality is it's the nature of the size of the ore body and the quality of the ore body that allows us to be able to think of this as being a 1.4 1.5 million ounce gold producer for decades to come.
Dr. Kaplan: What's also exciting about this is that because the deposit enjoys a grade that is double the industry average at this point, an industry average which, for better or worse, is actually falling to below a gram, we will have cash costs in the lower half of the industry's cost range. In fact, at today's prices, we would estimate that margins could be in the thousands of dollars. This is important because quality. matters. Grade is king, and for a large-scale open deposit, Donlon really is an emperor. Now, in terms of size, as I mentioned, 40 million ounces to start, and that's really because we have another inferred 6 million ounces very close to the pit.
Speaker Change: Also exciting about this is that because the deposit enjoys a grade that is double the industry average at this point and industry average, which for better or worse is actually falling to below a gram we will have cash costs.
Speaker Change: It's in the lower half of the industry's cost range in fact at today's prices, we would estimate that margins could be in the thousands of dollars.
Speaker Change: This is important because quality.
Speaker Change: Matters grade is king and for a large scale open deposit Donlin really is an emperor now in terms of size as I mentioned.
Speaker Change: 40 million ounces to start and that's really because we have another inferred 6 million ounces very close to the pit, let's say 45 million ounces not just in EM and I.
Dr. Kaplan: Let's say 45 million ounces, not just in M&I, but with some inferred. The Great Gold Strike Mine ultimately reached 40 million ounces. We begin there. So we have size and we have quality. And more than that, we believe that that's just scratching the surface.
Speaker Change: But with some inferred.
Speaker Change:
Speaker Change: The great Goldstrike strike mine ultimately reached 40 million ounces. We begin there. So we have size and we have quality and more than that we believe that that's just scratching the surface.
Dr. Kaplan: Only 5% of that land package that we have at Donlon now between NoveGold and Paulson has been explored. As I recently discovered, because it's been so long since we could look at being in control of our own destiny with regards to mine progress, regional exploration really stopped in the early 2000s after the failed barrack hostile takeover attempt of NoveGold in 2006. At that point, there really wasn't that much more incentive for Barrick to continue to highlight greater reserve growth, or indeed the possibility that the next Donlan could be at Donlan. The chances, in fact, that there is no other occurrence other than the one that we have is probably very low.
Speaker Change: Only 5% of that land package that we have at Donlin now.
Speaker Change: Between Nova Gold and Paulson has been explored as I recently discovered because it's been so long since we could look at being in control of our own destiny with regards to our main progress.
Speaker Change: Regional exploration really stopped.
Speaker Change: In the early two thousands after the failed barrick hostile takeover attempt of Nova gold in 2006 at that point, there really wasn't that much more incentive for barrick to continue to highlight them.
Speaker Change: Greater reserve growth or indeed, the possibility that the next donlin could be at donlin. The chances in fact that there is no other recurrence other than the one that we have.
Speaker Change: Is probably very low, but just to highlight with Melanie said, that's a forward looking statement, having said that electric zone geologists believes that there's a very good chance that the next donlin could be at Donlin, let's put that aside because that's where you come in to the idea of donlin as being the new car lender the new Nevada.
Dr. Kaplan: But just to highlight what Melanie said, that's a forward-looking statement. Having said that, Electrum's own geologists believe that there's a very good chance that the next Donlan could be at Donlan. Let's put that aside, because that's where you come into the idea of Donlan as being the new Carlin or the new Nevada. Just a long strike, and at depth. We are open. And we do believe that we can see millions and millions, if not tens of millions, of ounces just on the 8-kilometer mineralized belt. The 45 million ounces is on only three kilometers of the eight kilometers.
Speaker Change: Just along strike and at depth.
Speaker Change: We are open.
Speaker Change: And we do believe that we can see millions and millions if not tens of millions of ounces just on the eight kilometer mineralized belt.
Speaker Change: The 45 million ounces on only three kilometers of the eight kilometers and once again that eight kilometers only represents 5% of the land package.
Dr. Kaplan: And once again, that eight kilometers only represents 5% of the land pack. Now, there's no question that by any stretch, Donlan is world class. As we would say, we think it's unique, and we think it's the best in the world, and we're very fortunate now to have a partner who echoes these sentiments both publicly as well as privately.
Speaker Change: Now there's no question that by any stretch a.
Speaker Change: Donlin is world class.
Speaker Change: As we would say we think it's unique.
Speaker Change: And we think it's the best in the World and we're very fortunate now to have a partner.
Speaker Change: Who echoes these sentiments spoke publicly.
Speaker Change: As well as privately but.
Dr. Kaplan: But I don't believe that in today's world, it's good enough to be world class. I believe that the premium valuations are going to be given to those assets that when an investor calls up a broker and says, you know, I think it's time for me to have some exposure to the gold space. What do we have in safe jurisdictions with a trustee management, smart shareholders and of great asset quality? I think that going forward, one of the names which will be put forward is NoveGold One of the reasons is that, as I said, it's not just world-class, but it's located in the right part of the world.
Speaker Change: But I don't believe.
Speaker Change: That in today's world. It's good enough to be World class I believed that the premium valuations are going to be given to those assets that when an investor calls up a broker and says you know I think it's time for me to have some exposure to the gold space.
Speaker Change: What do we have in safe jurisdictions.
Speaker Change: Stiction with a trustee management.
Speaker Change: Smart shareholders.
Speaker Change: And of Great asset quality, I think that going forward one of the names, which will be put forward is.
Speaker Change: Nova bolt.
Speaker Change: One of the reasons is that as I said, it's not just world class, but it's located in the right part of the world as I experienced last week with my son, when going on a site visit to Donlin. It took place where you can take a site visit to go whale watching or hike alone glaciers.
Dr. Kaplan: As I experienced last week with my son, when going on a site visit to Donlan, it's a place where you can take a side visit to go whale watching or hike along glaciers. It's not the heart of darkness. You don't have to worry about insurgents. You don't have to worry about governments which are rapacious. It's a great area to be a mining company. In fact, Alaska is already the second-largest gold-producing state in the safest jurisdiction in the world. Our Native Corporation partners have been our greatest champions. Remember this.
Speaker Change: It's not the heart of Darkness, you don't have to worry about insurgents you don't have to worry about governments, which are repay shifts it's a great area to be a mining company. In fact, Alaska is already the second largest gold producing state.
Speaker Change: In the safest jurisdiction in the world.
Speaker Change: Our Native Corporation partners have been our greatest champions rim.
Speaker Change: Remember this is.
Dr. Kaplan: Donlon is located on private land designated by law. coming on board. And now we have the game changer, because now we have a partner who is completely aligned with us philosophically, as well as financially. They bring along attributes in terms of access to capital, and more than that, expertise. They are one of the only groups in US institutional firmament which actually have in-house talent and a great in-house track record on being able to take Donlon-like assets, great assets, up the value chain. Combined with our management team mind-building capabilities, we think that this is the absolute game changer that will get us back to not only where we were in every respect, including share valuation five years ago, but now allow us to be able to really achieve escape philosophy.
Speaker Change: Donlin is located on private land designated by law.
Speaker Change: For mining, we couldn't be in a greater place and that's proven by the fact that in a unique event. The bureau of land management in the U S. Army Corps of engineers together provided us with our federal permits and state permitting is absolutely on track our commitment.
Speaker Change: E S G. The wellbeing of our people and communities. Good governance all of those boxes are checked for the investors, we have and those who we expect to be coming on board.
Speaker Change: And now we have the game changer, because now we have a partner who is completely aligned with us philosophically as well as financially.
Speaker Change: They bring along attributes in terms of access to capital and more than that expertise. They are one of the only groups in U S institutional firmament, which actually have in house talent and a great in house.
Speaker Change: <unk> record on being able to take donlin like assets, great assets up the value chain combined with our management team mine building capabilities. We think that this is the absolute game changer that will get us back to not only where we were in every respect including.
Speaker Change: Share valuation.
Speaker Change: Five years ago, but now allow us to be able to really achieve escape velocity.
Dr. Kaplan: And finally, but by no means least, as evidenced by the relationship that has been shown by Paulson, who's been in this story with us for 15 years and suffers clearly no more deal fatigue than we do, which is to say we're more excited than ever. But also, so many of the long-term institutional investors who joined us in our offering, including Lingato and Copernic and First Eagle, so many long-term shareholders, too many to thank right now. But it's because of you that we were able to survive. And our mission is to be able to give you as immediate a gratification as possible.
Speaker Change: And finally, but by no means least as evidenced by the relationship that has been shown by Paulson who's been in the story with us for 15 years and suffers clearly.
Speaker Change: No more deals fatigue than we do which is to say we're more excited than ever but also so many of the long term institutional investors.
Speaker Change: Who joined us in our offering including the opto and Cobra, Nick and first Eagle.
Speaker Change: So many long term shareholders too many to think right now, but it's because the view that we were able to survive.
Speaker Change: And our mission is to be able to give you as immediate gratification as possible.
Dr. Kaplan: Next slide. Again, having discussed all of the attributes of Donlon, let me reiterate that one of those things which gave John Paulson so much confidence in being able to work with us was not only the asset quality, but the quality of the management team itself.
Speaker Change: Next slide.
Speaker Change: Again, having discussed all of the attributes of Donlin, Let me reiterate that one of those things, which gave John Paulson, so much confidence in being able to work with us was not only the asset quality, but the quality.
Speaker Change: The management team itself. Many of you of course know Melanie hennessey or have engaged with Ben Mac listen Peter Adamic, but let me just focus for a moment on Greg Lang prior to joining Nova bold, Greg Lang was a 30 year veteran of Barrick and its predecessor companies. The first time he ever left.
Dr. Kaplan: Many of you, of course, know Melanie Hennessey or have engaged with Ben Macklis and Peter Adamek, but let me just focus for a moment on Greg Lang. Prior to joining NoveGold, Greg Lang was a 30-year veteran of Barrick and its predecessor companies. The first time he ever left was to come and join NoveGold.
Speaker Change: It was to come and join.
Speaker Change: Nova Gold. This is extremely important he was president of Barrick North America for eight years prior to joining us, including being part of the team that made the takeover attempt of Nova gold in 2006.
Dr. Kaplan: This is extremely important. He was president of Barrick North America for eight years prior to joining us, including being part of the team that made the takeover attempt of NoveGold in 2006. On his watch, GoldStrike was not only developed, but Cortez was built. You saw the advancement of Turquoise Ridge, Bald Mountain. His experience, his frame of reference in the North American space is as strong as anyone else's in the industry. Similarly, Richard Williams, before joining us, was the project manager who put Pueblo Viejo, then Barrick's largest mining investment, into production. In both cases, these stories came in on budget and on schedule.
Speaker Change: On his watch goldstrike was not only developed but Cortez was built you saw the advancement of turquoise Ridge.
Speaker Change: Bold mountain his experiences framework of reference in the North American space is as strong as anyone else's in the industry. Similarly, Richard Williams before joining US was the project manager, who put web low vehicle than barrick's largest mining investment into production.
Speaker Change: In both cases these stories came in on budget and on schedule.
Dr. Kaplan: In the case of Cortez and Pueblo Viejo, they have been excellent minds for Barrick. In other words, we have a bench of mine builders in the Americas, as well as those who have the experience in as strong as any other company in the space. I would put them up there even with Agnico.
Speaker Change: And in the case of Cortez and Pueblo Viejo.
Speaker Change: Have been excellent minds for Barrick in other words, we have a bench of mine builders in the Americas as well as those who have the experience in permitting as strong as any other company in the space I would put them up there even with agnico next.
Speaker Change: <unk>.
Speaker Change: So all of these things not only kept.
Dr. Kaplan: So all of these things, not only kept. Paulson in the NoveGold story for 15 years, but as he watched the story progress. He came to the conclusion that, as he's been a gold bull for as long as I have, that is to say a couple of decades at least, he came to the conclusion that the great trade of our generation will turn out to be gold. I think there's no doubt in our minds that that's already happening. But remember, this is a man, this is an organization that having identified the big trade and the displacement that was coming in the housing crisis, subprime and the like, not only identified the macro factors before anyone else, but also, as George Soros put it, brilliantly found the right vehicles with which to be able to express that trade, vehicles that could give him and his stakeholders 10, 20x returns.
Speaker Change: Olson in the Novo gold story form.
Speaker Change: For 15 years, but as he watched the story progress he came to the conclusion that as he's been a gold bull for as long as I have that is to say a couple of decades at least he came to the conclusion that the great.
Speaker Change: Rate of our generation will turn out to be gold.
Speaker Change: I think theres no doubt in our minds, that's already happening, but remember this is a man. This is an organization that having identified the big trade.
Speaker Change: And the displacement that was coming in the housing crisis subprime and the like not only identified the macro factors before anyone else, but also as George Soros put it brilliantly found the right vehicles with which to be able to.
Speaker Change: Breast that trade vehicles that could give him and his stakeholders are 10 20 ex returns. So here you have someone who not only.
Dr. Kaplan: So here you have someone who not only has gotten the macros right on gold, but also has made clearly the biggest bet that Donlin is the best vehicle with which to be able to express that trade. As he put it, when we made our announcement, Donlin Gold is one of the most attractive undeveloped gold projects in the world, with 39 million ounces of gold at double the industry average grade and an optimal location in the prime jurisdiction of Alaska, already the second largest gold producing state in the United States. We believe that the project could create value for decades to come.
Speaker Change: Has gotten the macros right on gold, but also has made clearly the biggest bet that donlin is the best vehicle with which to be able to express that trade as he put it when we made our announcement Donlin gold is one of the most attractive undeveloped gold projects in the world.
Speaker Change: With 39 million ounces of gold at double the industry average grade and an optimal location and the prime jurisdiction of Alaska already the second largest gold producing state in the United States. We believe that the project could create value for decades to come enjoying excellent social license and formidable exploration upside potential.
Dr. Kaplan: Enjoying excellent social license and formidable exploration upside potential to significantly expand its resources and production profile, Donlin Gold constitutes a superb opportunity for us to gain leverage to gold in the United States. Together with Donlin Gold's partners, Chalista and TKC, we are dedicated to responsibly advance the Donlin Gold project. We could not have a more aligned partner. We've literally gone from misalignment to perfect alignment. And this is going to be reflected in the decisions and the announcements that will be undertaken in the weeks ahead.
Speaker Change: <unk> to significantly expand its resources and production profile Donlin gold constitutes a superb opportunity for us to gain leverage to gold in the United States together with Donlin golds partners Calista and Teekay C. We are dedicated to responsibly advance the Donlin Gold project.
Speaker Change: We could not have a more aligned partner, we've literally gone from misalignment to perfect alignment and this is going to be reflected in the decisions and the announcements that will be undertaken in the weeks ahead, but more than that for those who.
Dr. Kaplan: But more than that, for those who are inevitably going to be looking at the NoveGold story and really want to understand it, because for so many people, they haven't heard about it practically for five years, so it's a new story in many ways, they're going to be calling up John. I have no doubt. I have no doubt that some of our largest shareholders, as people cotton on to the fact that the gold bull market is enduring and that gold and precious metals equities are going to be re-rated, they're going to be calling up our largest shareholders.
Speaker Change: Who are inevitably going to be looking at the Nova bold story and really want to understand it because for so many people they haven't heard about it practically for five years. So it's a news story in many ways.
Speaker Change: Theyre going to be calling up John I have no doubt I have no doubt that some of our largest shareholders as people cotton onto the fact that the gold bull market as enduring and that gold and precious metals equities are going to be re rated they're gonna be calling up our largest shareholders and the beauty is because they are so well in <unk>.
Dr. Kaplan: And the beauty is, because they are so well informed, they will be giving answers very similar to the ones which I am.
Speaker Change: Formed.
Speaker Change: They will be giving answers very similar to the ones, which I am.
Speaker Change: So now let's take a look at the pulse and track record.
Dr. Kaplan: So now let's take a look at the Poulsen track record. I'll get to a case study, which is Detour Gold, which ultimately led to a major shareholding in Agnico Eagle. But there are others. Perpetua Resources is on the critical strategic and critical minerals list of the United States. As a consequence, they have secured nearly $2 billion in funding from the U.S. government. I should say this under the Biden administration. And for all of the reasons that the Biden administration was clear on its desire to be able to bolster the mining industry, one knows that its successor administration not only feels the same and has added gold to the critical minerals list, but is also very, very focused on Alaska.
Speaker Change: I'll get to a case study, which is detour gold, which ultimately led to a major shareholding in agnico Eagle, but there are others Perpetua resources is on the critical strategic and critical minerals list of the United States as a consequence they have.
Speaker Change: Secured nearly $2 billion in funding from the U S government I should say this under the Buyten administration and for all of the reasons that the Biden administration.
Speaker Change: Was clear on its our desire to be able to bolstered the mining industry.
Speaker Change: One knows that its successor administration not only feels the same and has added gold to the critical minerals list, but it's also very very focused on Alaska, but if you look at perpetua Perpetua has gone from to $3.
Dr. Kaplan: But if you look at Perpetua, Perpetua has gone from two, three dollars, five, six times over the last year and a half. And when we made our announcement, John actually said he thought that as we move back up the value chain with the updated feasibility study, similar things will happen to NoveGold itself. So we're lucky not only to have a smart advisor, but one who can give us tremendous advice as we go up the value chain to maximize all aspects of access to capital. Let's face it, we're not the only ones. We are clearly gold bull.
Speaker Change: Five six times over the last year and a half and when we made our announcement John actually said he thought that as we move back up the value chain with the updated feasibility study similar things will happen to Nova gold itself. So we're lucky not only to have.
Speaker Change: A smart adviser.
Speaker Change: But one who can give us tremendous advice as we go up the value chain to maximize all aspects of access to capital.
Speaker Change: Next.
Speaker Change: Let's face it.
Speaker Change: We are clearly gold bulls.
Dr. Kaplan: Let me start by saying, to anyone who wonders whether gold is in nosebleed territory, it is. When I first started being bullish on gold publicly in 2007, I was in the process of selling my energy company. And at the same time, moving into gold, gold was at $550 an ounce, oil was going to the hundred that I believed it would hit. We sold our energy company, pivoted into gold in 2007. At that time, my target was between $3,000 and $5,000. No fear factors came into that calculation. Just based on wanting to be able to have a currency, a financial asset that didn't represent someone else's liability.
Speaker Change: Let me start by saying to anyone who wonders whether gold Ah is in nosebleed territory. It isn't.
Speaker Change: When I first started being bullish on gold publicly in 2007 I was in the process of selling my energy company.
Speaker Change: And at the same time moving into gold gold was at $550 an ounce oil was going to the hundred that I believed it would hit them.
Speaker Change: We sold our energy company pivoted into gold in 2007 at that time my target was between three and $5000. No fear factors came into that calculation just based on one thing to be able to have a currency a financial asset that didn't represent someone else's liability.
Speaker Change: For me the Holy Grail was Donlin and on December 31, 2008, when Nova Gold was in trouble from being a non shareholder we effectively took over the company because our view was it gold was going into the thousands of dollars and for the reasons that John has stated.
Dr. Kaplan: For me, the Holy Grail was Donlan. And on December 31st, 2008, when NoveGold was in trouble from being a non-shareholder, we effectively took over the company because our view was that gold was going into the thousands of dollars. And for the reasons that John has stated, this would give us the maximum leverage to a bull market. My personal belief on gold is that we are now just in the foothills of the bull market, not dissimilar to where we were, price-wise even, to where the Dow was in 1988, for example. And I think that we're going to see, for a variety of reasons, the competition between central banks and the private sector, the continuing competition between India and China over who's going to be the largest consumer of a scarce resource, the inflation, deflation protection, asset diversification.
Speaker Change: This would give us the maximum leverage to a bull market my personal belief on gold is that we are now just in the foothills of the bull market not dissimilar to where we were pricewise even to where the Dow was in 1988 for example.
Speaker Change: And I think that we're going to see for a variety of reasons the competition between central banks and the private sector. The continuing competition between India, and China over who's going to be the largest consumer of a scarce resource.
Speaker Change: The inflation deflation protection asset diverse diversification and let's face it the reality is that since 2022 in terms of geopolitical.
Dr. Kaplan: And let's face it, the reality is that since 2022, in terms of geopolitical reasons, but also in terms of what happened when the sanctions were put on Russia and most of their assets, other than their gold, were confiscated. the official sector revaluation of gold is going to continue. Basically, every central banker, whoever argued that they should be buying more gold, looks like a genius. They're not paid to in 20. There is absolutely no reason for them to argue anything against because who wants to sell something that could be on its way to 5,000 or 10,000?
Speaker Change: Reasons, but also in terms of what happened when the sanctions were put on Russia and most of their assets other than their gold were confiscated.
Speaker Change: The official sector revaluation of gold is going to continue.
Speaker Change: Basically every central banker whoever argued that they should be buying more gold looks like the genius, they're not paid two in 'twenty. There is absolutely no reason for them to argue anything against because who wants to sell something that could be on its way to 5000 or 10000.
Speaker Change: Also as I've always said whenever you see the Indians and the Chinese competing over a scarce asset you want to own some too I used to think that that should be enough to get people interested.
Dr. Kaplan: Also, as I've always said, whenever you see the Indians and the Chinese competing over a scarce asset, you want to own some too. I used to think that that should be enough to get people interested. It wasn't. But the reality is that that in and of itself is a great asset. That and the fact that we know the Chinese have been hoarding gold far, far more extensively than their official sector. When they choose to announce how much more gold they have, I would likely say it will be significantly more than the Americans' reserves. It's going to have a signal impact on the perception of the renminbi.
Speaker Change: It wasn't but the reality is that that in and of itself is.
Speaker Change: Is a great asset that and the fact that we know the Chinese have been hoarding gold.
Speaker Change: Far far more extensively than their official sector when they choose to announce how much more gold. They have I would likely say it will be significantly more than the Americans reserves its going to have a signal impact on the perception of the renminbi.
Speaker Change: Next.
Speaker Change: So let's talk about the leverage that we and John Polson C. In terms of what Donlin provides.
Dr. Kaplan: So let's talk about the leverage that we and John Paulson see in terms of what Domland provides. The leverage is absolutely extraordinary. If we just looked at $3,000 gold at a 5% NPV, Donlan is $15.2 billion based upon our last technical report.
Speaker Change: The leverage is absolutely extraordinary.
Speaker Change: If we just looked at 3000 dollar gold at a 5% NPV Donlin is $15 $2 billion based upon our last technical report.
Dr. Kaplan: I have to tell you, I got into this business in the early 90s when the gold or the frontier spirit in looking for gold or silver was such that you went all over the world. At that time, US assets were valued using a 0% discount rate because they were arbitraged against the then risky jurisdictions of Canada, Australia, and South America. The world's changed a lot in the last 20 years. For what it's worth, as somebody who made their bones, as one could say, in Bolivia, Zimbabwe, South Africa, I sold the Cavalli project to Rand Gold.
Speaker Change: I have to tell you I got into this business in the early nineties when the gold.
Speaker Change: Or the frontier spirit in looking for gold or silver was such that you went all over the world at that time U S assets were valued using a 5% discount excuse me of zero percent discount rate because they were arbitrage against the then risky jurisdictions of Canada, Australia and south.
Speaker Change: Erika the world's changed a lot in the last 20 years.
Speaker Change: For what it's worth as somebody who made their bones as one could say in Bolivia, Zimbabwe, South Africa Ah I sold.
Speaker Change: The Kibali project to Rand gold I'm very familiar with the developing world and making money in Africa, South America as well as North America I just happen to believe that that era is over that it's all about being able to have extraordinary leverage.
Dr. Kaplan: I'm very familiar with the developing world and making money in Africa, South America, as well as North America. I just happen to believe that that era is over, that it's all about being able to have extraordinary leverage. to an underlying theme, in this case gold, but knowing that it's in a place where you can keep the fruits of that leverage, knowing that when you go to sleep at night, when you wake up in the morning, what you thought you owned hasn't been taken away from you by miscreants on the ground or venal governments. You want to be in the United States.
Speaker Change: An underlying theme in this case gold, but knowing.
Speaker Change: That it's in a place where you can keep the fruits of that leverage knowing that when you go to sleep at night when you wake up in the morning, what you thought you owned Hasnt been taken away from you buy miscreants on the ground or venal governments, you wanted to be in the United States Ideally Navarre.
Dr. Kaplan: Ideally, Nevada's great. Alaska is the number two in the United States and hopefully catching up is a fabulous place. Like I said, the premium valuations will be given to the places where people want to go on site. we see gold going much higher. The reality is that by any stretch of the imagination, NoveGold is undervalued. And I'm very grateful to John Paulson for allowing NoveGold to go from 50 to 60% economic interest. We look forward to developing this leverage in tandem and more so being able to show areas where we fully expect there are some pleasant surprises for our shareholders.
Speaker Change: It is great.
Speaker Change: Alaska is the number two in the United States and hopefully catching up.
Speaker Change: <unk> is a fabulous place like I said, the premium valuations will be given to the places where people want to go on site visits.
Speaker Change: We see gold going much higher the reality is that by any stretch of the imagination.
Speaker Change: Nova bolt is undervalued and I'm very grateful to John Paulson for allowing Nova bold to go from 50% to 60% economic interest we look forward to developing.
Speaker Change: Developing this leverage in tandem and more so being.
Speaker Change: Being able to show areas, where we fully expect there are some pleasant surprises for our shareholders.
Speaker Change: Let's look at an example of.
Dr. Kaplan: Let's look at an example of what the Paulson team did in a premier jurisdiction. After an investment of $500 million in Detour Gold, they took an activist stance, nominating directors, which were approved. Key changes were made. The company successfully optimized the mine plan, improved recoveries, reduced ASIC. And a year after company changes, Kirkland Lake acquired Detour for $3.7 billion in 2019. If you'd have invested alongside Polson, you would have had 130% plus over a year. But if you kept the successor to Kirkland in this story, Agnico, you would have made 450 percent over six years.
Speaker Change: Of what the Polson team did in a premier jurisdiction.
Speaker Change: After an investment of $500 million and detour gold. They took an activist stance nominating directors, which were approved T. Changes were made the company successfully optimized the mine plan improved recoveries reduced ASIC and a year.
Speaker Change: After company changes Kirkland Lake acquired detour for $3 $7 billion in 2019, if you'd invested alongside Polson, you would've had a 130% plus over a year.
Speaker Change: But if you had kept the successor to Kirkland and this story Agnico, you would've made 450% over six years.
Dr. Kaplan: and you would have been an owner in the largest gold mine in Canada. Some of these things should ring bells. We have great, smart shareholders taking big bets on extraordinary assets in safe jurisdiction. Like they say, the past is prologue.
Speaker Change: And you would have been an owner in the largest gold mine in Canada. Some of these things should ring bells, we have great smart shareholders, taking big bets on extraordinary assets in safe jurisdictions.
Speaker Change: Like they say the past is prologue next.
Speaker Change: So with that what can you expect from.
Dr. Kaplan: So with that, what can you expect from The New Nova Gold. First of all, We couldn't be coming back to the market at a better time. The underlying gold price fundamentals are stronger than ever. And we now have new co-owners. which are completely aligned with wanting to see the shares of NoveGold rise. Everyone understands that the best way to crystallize their investment in Donlin, whether a direct ownership stake in Donlin or through NoveGold, knows that they can look forward to a dynamic and sustained narrative of progress. This will not be going into a no-news hibernation.
Speaker Change: The new Nova gold.
Speaker Change: First of all.
Speaker Change: We couldn't be coming back to the market.
Speaker Change: At a better time, the underlying gold price fundamentals are stronger than ever.
Speaker Change: And we now have new co owners.
Speaker Change: Which are completely aligned with wanting to see the shares of Nova gold rise everyone understands that the best way to crystallize their investments in donlin, whether a direct ownership stake in donlin or through Nova cold.
Speaker Change: Knows that they can look forward to a dynamic and sustained narrative of progress. This will not be going into a no news hibernation not at all to the country first of all the commencing of the feasibility study update which should have taken place in 2021 but didn't for historical reasons.
Dr. Kaplan: Not at all. To the contrary.
Dr. Kaplan: First of all, the commencing of the feasibility study update, which should have taken place in 2021, but didn't for historical reasons that we don't have to dwell upon unless you want to ask why. This is going to be a major catalyst as it develops news flow about the assembly of the team and the blue chip consortium that will be coming together to Do the studies that will take us to a construction decision The drill programs, which, despite delivering some of the best drill results over the last few years in the gold mining industry, will be no longer directed towards where they're no longer needed, because whatever testing Barrick wanted to do on the resource was more than proven to be accurate.
Speaker Change: That we don't have to dwell upon unless you want to ask questions.
Speaker Change: This is going to be a major catalyst as it develops news flow about the assembly of the team and the Blue Chip consortium that will be coming together to do the studies that will take us to a construction decision the.
Speaker Change: The drill programs, which despite delivering some of the best drill results over the last few years in the gold mining industry.
Speaker Change: <unk> will be no longer directed towards where they're no longer needed.
Speaker Change: Because whatever testing Eric wanted to do on the resource was more than proven to be accurate.
Speaker Change: But drill programs will be developed on expanding reserves and resources, adding more proven and probable ounces per share and pursuing further exploration at depth.
Dr. Kaplan: But drill programs will be developed on expanding reserves and resources, adding more proven and probable ounces per share, and pursuing further exploration at depth. We are open to depth, we are open laterally. There's every reason to be able to expect good news and on a systematic basis.
Speaker Change: We are open to depth, we are open laterally.
Speaker Change: There's every reason to be able to expect good news and on a systematic basis I also want to add this as I said before 95% of this property was unexplored because at least one partner didn't want to see another donlin discovered we are going to implement.
Dr. Kaplan: I also want to add this, as I said before, 95% of this property was unexplored because at least one partner didn't want to see another domlin discovered. We are going to implement a regional exploration program to cover the rest of our land package. The chances that something else is there, that it's a one-off occurrence of whatever it would be, 70, 80, 100 million ounces along strike, this is possible, but we don't think it's likely. So watch this space. Meanwhile, we'll be supporting state permitting efforts, engaging proactively with government representatives, and of course, collaborating on ongoing stakeholder outreach and investment initiatives in Alaska.
Speaker Change: And a regional exploration program.
Speaker Change: To cover the the rest of our land package the chances that something else is there that it's a one off occurrence of whatever it would be 70, 80 100 million ounces along strike. This is possible, but we don't think it's likely so watch this space.
Speaker Change: Yes.
Speaker Change: Meanwhile, we'll be supporting state permitting efforts engaging proactively with government representatives and of course collaborating on ongoing stakeholder outreach and investment initiatives in Alaska anyone who's been up with us.
Dr. Kaplan: Anyone who's been up with us to Alaska knows that we enjoy unbelievable support from our Native Corporation partners, who I'm very gratified to say are as excited about this transformative transaction with Pulse and Advisors as we are.
Speaker Change: To Alaska knows that we enjoy unbelievable support from our Native Corporation partners, who I'm very gratified to say are as excited about this transformative transaction with pulse and advisors as we are.
Speaker Change: Thank you very much.
Dr. Kaplan: Thank you very much. Thank you, Tom.
Speaker Change: Thank you Tom.
Peter Adamek: Turning to slide 14, NoveGold reported a net loss of $54.3 million in the second quarter of 2025, representing an increase of $40.6 million from the comparable prior year period. This increase was primarily due to a $39.6 million non-cash, non-recurring charge related to warrants issued as consideration to certain investors for providing a backstop commitment as part of the Donlan Gold transaction announced during the second quarter. Excluding the impact of this non-cash charge, our results for the three and six months ended May 31, 2025 reflect lower G&A spending and elevated Donland Gold expenditures related to the 2025 field program in line with our budget and guidance.
Speaker Change: Turning to slide 14, Nova Gold reported a net loss of $54 $3 million in the second quarter of 2025, representing an increase of $40 6 million.
Speaker Change: From the comparable prior year period.
Speaker Change: This increase was primarily due to a $39 $6 million noncash nonrecurring charge related to warrants issued as consideration to certain investors for providing a backstop commitment.
Speaker Change: As part of the Donlin gold transaction announced during the second quarter.
Speaker Change: Excluding the impact of this noncash charge our results for the three and six months ended May 31, 2025 reflect lower G&A spending and elevated donlin gold expenditures related to the 2025 field program in line with our budget and guidance.
Speaker Change: On slide 15, our treasury increased by $225 $7 million to $318 7 million at the end of the second quarter.
Peter Adamek: On slide 15, our treasury increased by $225.7 million to $318.7 million at the end of the second quarter, primarily due to the closing of a public offering of 47.9 million shares and a private placement of 17.2 million shares early in May, generating $234.1 million in net proceeds to the company. The net proceeds from the May capital raise were principally used to purchase an additional 10% interest in Donland Gold early in the third quarter. The balance of the proceeds will be used to fund NoveGold's share of expenses at Donlin, including the update to the Donlin Gold Feasibility Study and for general corporate purposes.
Speaker Change: Primarily due to the closing of a public offering of $47 9 million shares in a private placement of $17 2 million shares early in may generating $234 $1 million in net proceeds to the company.
Speaker Change: The net proceeds from the May capital raise were principally used to purchase an additional 10% interest in donlin Gold's early in the third quarter.
Speaker Change: The balance of the proceeds will be used to fund Nova gold share of expenses at donlin, including the update to the Donlin gold feasibility study and for general corporate purposes.
Speaker Change: Excluding the equity financing corporate G&A costs during the second quarter declined by 0.8 million, while our share of Donlin gold funding increased by $3 1 million due to increased flight activity in 2025 compared to the prior year when field work activities were minimal.
Peter Adamek: Excluding the equity financing, corporate G&A costs during the second quarter declined by $0.8 million while our share of Donlin Gold funding increased by $3.1 million due to increased site activity in 2025 compared to the prior year when fieldwork activities were minimal.
Speaker Change: Moving now to page 16, and as discussed on the previous slide our treasury increased to $319 million at the end of the second quarter.
Peter Adamek: Moving now to page 16. And as discussed on the previous slide, our treasury increased to $319 million at the end of the second quarter.
Peter Adamek: Shortly after the end of the second quarter, we completed the Donlan Gold transaction on June 3rd, and on June 5th, we announced the full exercise and closing of the underwriters option to purchase an additional 15% shares following the May public offering, generating an additional $25.6 million in net proceeds to the company. Pro forma, these two announcements are ending second quarter Treasury stood at a very robust one hundred and thirty six million dollars. Our cash expenditures for the first six months of fiscal 2025 have remained in line with our 2025 budget and guidance. However, given that our share of funding Donlin Gold's expenses has increased from 50% to 60% with the closing of the Donlin Gold transaction early in the third quarter, we expect our share of Donlin Gold funding to be higher than our previously issued 2025 guidance of $21.5 million.
Speaker Change: Shortly after the end of the second quarter, we completed the Donlin gold transaction on June 3rd and on June 5th we announced the full exercise and closing of the underwriters option to purchase an additional 15% shares following the made public offering generating an additional $25 $6 million.
Speaker Change: In net proceeds to the company.
Speaker Change: Pro forma these two announcements are ending second quarter Treasury stood at a very robust $136 million.
Speaker Change: Our cash expenditures for the first six months of fiscal 2025 have remained in line with our 2000 and twenty-five budget and guidance.
Speaker Change: However, given that our share of funding Donlin Gold's expenses has increased from 50% to 60% with the closing of the Donlin gold transaction early in the third quarter, we expect our share of Donlin gold funding to be higher than our previously issued 2025 guidance of $21 5 million.
Speaker Change: Yeah.
Speaker Change: In light of the closing of the Donlin Gold transaction, Nova gold intends to provide an updated 2025 guidance with the release of our third quarter results.
Peter Adamek: In light of the closing of the Donlin Gold transaction, NoveGold intends to provide an updated 2025 guidance with the release of our third quarter results.
Speaker Change: And with that I will now turn the presentation over to Greg to discuss the second quarter highlights.
Gregory Lang: And with that, I will now turn the presentation over to Greg to discuss the second quarter highlights. Thank you, Peter. The primary focus up in Alaska this year is a drill program. We started drilling in March, and we're about halfway through a 15,000 meter program. This program is focused on resource conversion in and around the ACMA and Lewis deposit.
Speaker Change: Thanks Pierre.
Speaker Change: The primary focus up in Alaska. This year as a drill program. We started drilling in March and we're about halfway through a 15000 meter program. This program is focused on resource conversion in and around the asthma and Lewis deposits.
Speaker Change: We also continue and extensive.
Gregory Lang: We also continue an extensive Government, and Community Engagement. Your new general manager, Todd Dahlman, who joined us recently from Kenross, traveled to the Capitol to meet our elected officials from Alaska and reinforce the project's importance to both the state. and the YK region. We continue to be active in community meetings and held one recently in Crooked Creek, which is the nearest community to the Donovan. These meetings are about the advisory committees that we set up to enable the local residents to have input into the Dom & Gold project and keep them informed of all of our activities.
Speaker Change: Government and community engagement.
Speaker Change: Our new General manager, Todd Garman, who joined US recently from 10 Ross traveled through the capital to meet with officials from Alaska and reinforced the project's importance to the state.
Speaker Change: And the Y K region.
Speaker Change: We continue to be active in community meetings held one recently in Crooked Creek, which is the nearest community to the Donlin site.
Speaker Change: These meetings are about the advisory committees that we set up to enable the local residents have input into the Donlin gold project and keep them informed of all of our activities.
Gregory Lang: We also continue to support safety programs, traveling along the Kuskokwim River, distributing life jackets. and other essential items to the local villages. We've also been actively involved in a cleanup, green up program. where we help the communities.
Speaker Change: We also continue to support safety programs traveling along the Kuskokwim River distributing life jackets and other essential items to the local villages.
Speaker Change: Also been actively involved in the clean up Green up program.
Speaker Change: We help the communities.
Gregory Lang: Unknown Attendee, Rabi Nizami, Melanie Hennessey, Nicholas Giles, Fedor Shabalin, Peter Adamek, Next slide, please. Your permitting has been a focus of ours for many years. and we're continuing to advance. Existing permits, as well as defend our permits in the court. You know, we have prevailed through the court readings, rulings in all of the Alaska. Courthouses and the Alaska Superior Court recently upheld our 401 certification. In the federal litigation, the court upheld two out of three points. that the plaintiffs raised. also remanded the project to do an additional study related to a tailings dam. Issues. and the order was recently received and the court rejected the plaintiff's position.
Speaker Change: Dispose of trash and other hazardous waste throughout the Y K region next.
Speaker Change: Next slide please.
Speaker Change: Permitting has been a focus of ours for many years.
Speaker Change: And we're continuing to advance the existing permits as well as defend our permits in the courts.
Speaker Change: We have prevailed through the court readings rulings and all of the Alaska.
Speaker Change: Courthouses, Alaska Superior Court recently upheld our 401 certification.
Speaker Change: In the federal litigation.
Speaker Change: Court.
Speaker Change: Upheld two out of three points.
Speaker Change: If the plaintiffs raised.
Speaker Change: The court.
Speaker Change: Also remanded the project to do an additional study related to a tailings dam.
Speaker Change: Issue.
Speaker Change: And the order was recently received and the court rejected the plaintiffs position.
Gregory Lang: to vacate the permits. So our permits remain solidly intact.
Speaker Change: To vacate the permits so our permits remain solidly intact.
Gregory Lang: Next slide, please.
Speaker Change: Next slide please.
Speaker Change: So why would you look at investing in Novo home and why now.
Gregory Lang: So why would you look at investing in NoveGold and why now? Donlan is well positioned to be a major gold producer. As Tom highlighted earlier, for the first 10 years, we will average 1.4 million ounces a year, making Donlan one of the largest, if not the largest, gold mines in the industry. When you compare Donlan to the other development projects that are advancing. It's more than double the average output of these other projects.
Speaker Change: Donlin is well positioned to be a major gold producer.
Speaker Change: Tom highlighted earlier.
Speaker Change: The first 10 years, we will average.
Speaker Change: One 4 million ounces, a year, making donlin is one of the largest if not the largest gold mines in the industry. When you compare donlin to the other development projects that are advancing.
Speaker Change: It's more than double the average output of these other projects.
Speaker Change: Next slide please.
Gregory Lang: slide please. you upgrade is something that really sets the Donovan Project apart from the other peer groups. in our grade is two and a quarter grams, which is better than twice the industry average. A new mine in British Columbia recently came on stream quite successfully and they're making good profits and their grade is one third of what the Donlan grade is, which will enable Donlan to have exceptionally low Next slide please.
Speaker Change: Great.
Speaker Change: It is something that really sets the donlin project apart from the other peer groups are.
Speaker Change: <unk> is two and a quarter grams, which is better than twice the industry average.
Speaker Change: New mine in British Columbia recently came on stream quite successfully and they are making good profits and they're great as one third of what the Donlin grade.
Speaker Change: Which will enable donlin.
Speaker Change: <unk> really low cash costs.
Speaker Change: Slide please this slide highlights the exploration potential.
Gregory Lang: This slide highlights the exploration potential on and around the Lewis and Ackman deposits. The ongoing drill program right now is targeted at sparsely drilled areas in and around the Ackman-Lewis deposits where we have the potential to convert inferred resources and upgrade them into measured and indicated. A long trend, we've got Goldberry drill holes. all up and down the eight kilometer belt. We've only extensively explored three kilometers of this area. You know, as Tom mentioned, we're going to be exploring throughout the claim holdings at Donlan, and the area shown here represents just a fraction. of our Total Land Package up in Alaska.
Speaker Change: On and around the Lewis and ackman deposits the <unk>.
Speaker Change: Ongoing drill program right now is targeted at sparsely drilled areas in and around the ackman Lewis deposits, where we have the potential to convert inferred resources and upgrade them into measured and indicated.
Speaker Change: Our long trend, we've got Goldberg drill holes.
Speaker Change: All up and down the eight kilometer belt and we've only extensively explored three kilometers of this area.
Speaker Change: As Tom mentioned, we're going to be.
Speaker Change: Flooring.
Speaker Change: Throughout the claim holdings at Donlin and the areas shown here represents just a fraction.
Speaker Change: Of our total land package up in Alaska.
Speaker Change: That's fine.
Gregory Lang: Next slide. You know, Alaska is a great place to do this. And some recent developments that we find quite exciting is one of them is the President has declared gold a strategic metal and issued executive orders aimed at unlocking the extraordinary resource potential up in Alaska. One of the areas of focus for the governments, both on the state and federal level, is building a gas pipeline to bring natural gas down from the North Slope into the Cook Inlet for export. And that's very important to Donlin because we had envisioned importing natural gas. into the project and delivering it to the site in a pipe.
Speaker Change: You know Alaska is a.
Speaker Change: Great place to do business and some recent developments that we find quite exciting as one of them is the pricing has declared gold the strategic metal and issued executive orders aimed at unlocking extraordinary resource potential up in Alaska.
Speaker Change: One of the areas of focus for the governments both on the state and federal level is building a gas pipeline to bring natural gas down from the north slope into the <unk>.
Speaker Change: Looking at for export.
Speaker Change: It's very important to donlin, because we had envisioned importing natural gas.
Speaker Change: Into the project and delivering it to the site and a pipeline.
Gregory Lang: You know, Alaska is a great state. It's already the second largest producing state in the US. Government in Alaska value responsible resource development. As far as a jurisdictional rating, it's one of the top jurisdictions in the world.
Speaker Change: <unk> is a great state it's already the second largest producing state in the U S Gulf.
Speaker Change: Governments in Alaska value responsible resource development.
Speaker Change: As far as a jurisdictional rating, it's one of the top jurisdictions in the world.
Speaker Change: Next slide please.
Gregory Lang: online, please. The O'Donnell Inn is on private land owned by two Alaska Native corporations. Chylista owns the mineral rights and PKC owns the surface got long standing relationships with them. They have an owner's interest in seeing this project go forward.
Speaker Change: Donlin is on private land owned by two Alaska Native corporations.
Speaker Change: Mr owns the mineral rights and PTC owns the surface rights.
Speaker Change: We've got longstanding relationships with them they have an owner's interest in seeing this project go forward. We were recently up in Alaska with a group of analysts and shareholders and it was clear to everybody how excited.
Gregory Lang: We were recently up in Alaska with a group of analysts and shareholders. And it was clear to everybody how excited they are about the project finally having a path forward. You know, permitting is a very thorough transparent process in the United States. We've completed our federal permitting process a few years ago, and we have a time issued a joint record of decision from both the Army Corps of Engineers and their Bureau of Land Management. We've also gotten all of the infrastructure, including the pipelines, secure. The only remaining state permit of any consequence is for the tailings dam and other water retention structure.
Speaker Change: They are about the project finally, having a path forward.
Speaker Change: Next slide please.
Speaker Change: Permitting is.
Speaker Change: A very thorough transparent process in the United States, we've completed our federal permitting process a few years ago, and we have time issued a joint record of decision from both the Army Corps of Engineers and the Bureau of land management.
Speaker Change: We've also gotten all of the infrastructure, including the Pipeline's Securities.
Speaker Change: The only remaining state permits of any consequence is for the tailings dam and other water retention structures, we've submitted the preliminary design packages.
Gregory Lang: You know, we've submitted the preliminary design packages. We anticipate having these permits in hand, well in advancement. Beginning Activities at the site. The state permits that are completed are also shown on this chart.
Speaker Change: We anticipate having these permits in hand, well and the advancement of.
Speaker Change: Beginning activities at the site.
Speaker Change: The state permits we have completed our also shown.
Speaker Change: On this chart.
Speaker Change: Next slide please.
Gregory Lang: Next slide, please. Yeah, NoveGold remains committed. To good governance at our board level, our board is well diversified, and many industry veterans are represented on our board. From a health and safety point of view, the Donovan site has worked well over a decade. without a lost time injury in our program so far this year is continuing that impressive record. of no harm to our employees. on the environment. We've always maintained a vigorous focus on the environment, and we continue to do that.
Speaker Change: <unk> remains committed to.
Speaker Change: Good governance at our board level, our board is well diversified.
Speaker Change: Many industry veterans are represented on our board from health and safety point of view the Donlin site.
Speaker Change: His work well over a decade.
Speaker Change: Without a lost time injury in our program. So far this year is continuing and impressive record.
Speaker Change: No harm to our employees.
Speaker Change: On the environment.
Speaker Change: We've always maintained a vigorous focus on the environment and we continue to do that.
Gregory Lang: Next, please. You know, Donlan enjoys or excuse me, NoveGold enjoys great institutional support. Our top shareholders are listed here. Many of them have been with the company and invested. for a lot of years.
Speaker Change: Next please.
Speaker Change: Donlin.
Speaker Change: Joyce or excuse me no gold enjoys great institutional support our top shareholders are listed here many of them have been with the company and invested.
Speaker Change: Where a lot of years.
Gregory Lang: Next.
Speaker Change: Next students.
Speaker Change: That concludes our presentation. This morning.
Gregory Lang: That concludes our presentation this morning. I'd like to at this time really thank our shareholders who are listed here for their one, their investment in the company and their confidence in the direction that NoveGold and the Donlan Project are moving. This stage, I'd also like to express our gratitude to our chairman and our board of directors and everyone on the management team. for their tremendous efforts in getting our transaction to increase our interest over the line. NoveGold is in a fantastic position right now. For the first time in many, many years, we have a very clear path forward.
Speaker Change: I'd like to at this time really thank our shareholders, who are listed here, whether one or investment in the company and their confidence in the direction.
The goals and the Donlin project are moving.
Speaker Change: At this stage I would also like to express our gratitude to our chairman and our board of directors and everyone on the management team.
Speaker Change: For their tremendous efforts in getting our transaction to increase our interest over the line.
Speaker Change: No, but all these.
Speaker Change: Fantastic position right now for the first time in many many years, we have a very clear path forward.
Gregory Lang: Exciting time for us and we look forward to updating the markets and our stakeholders as we execute this year's program and continue to move the Diamond and Gold project up the value chain.
Speaker Change: Citing time for us and we look forward to updating the market and our stakeholders.
Speaker Change: We execute this year's program continue to move the Donlin Gold project up the value chain.
Speaker Change: We will now turn the line over for any questions that might have come in.
Operator: We'll now turn the line over for any questions that might Thank you. To join the question queue, you may press star, then one on your telephone keypad. You will hear a tone acknowledging your request. Webcast viewers may submit questions through the text box in the lower right corner of the webcast frame. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then two.
Speaker Change: Thank you.
Speaker Change: The question you May Press Star then one on your telephone keypad, you'll hear talent acknowledging your request.
Katherine: Katherine you may submit questions.
Katherine: Text box in the lower right corner I'll start I guess span.
Speaker Change: Yeah anything that's been kept Bonnie please pickup your handset before pressing anything different.
Speaker Change: Cause intaglio question. Please press Star then two.
Josh Attie: Our first question comes from Josh Attie Security. Please go ahead.
Nick Charles: The first question comes from Nick Charles with B-Rally Securities, please go ahead. Thank you, operator. Good morning, everyone. Congratulations on the transaction and all the recent progress.
Josh Attie: Thank you operator, good morning, everyone. Congratulations on the transaction and all the recent progress. My first question can you remind us of the capital intensity of the feasibility study and ultimately what timing look like there.
Gregory Lang: My first question, can you remind us of the capital intensity of the feasibility study and ultimately what timing could look like there? Sure, Nick, thank you for joining the call this morning. The last refresh we did with the capital was several years ago. It was a little over seven billion dollars. You know, and I think what we're really focused on now is we know these numbers are stale and need to be updated and that's hence why we're focused on completing a new feasibility. Right now we're preparing the necessary documents to solicit proposals from qualified engineering firms that can execute on the feasibility study for us.
Speaker Change: Yeah.
Speaker Change: Sure. Thank you for joining the call this morning.
Speaker Change: Last refresh we did with the capital was several years ago. It was a little over $7 billion and I think what we're really focused on now as we know these numbers are scale and need to be updated and that's hence why we're focused on completing a new feasibility study.
Speaker Change: Right now we're preparing the necessary documents to solicit proposals from qualified engineering firms.
Speaker Change: Execute on the feasibility study for us.
Gregory Lang: By the time we get the proposals out, evaluate them and award a contract, we would anticipate kicking off the feasibility study somewhere late in the third quarter or fourth quarter of this year. It's a process that we anticipate will take about two years and on a 100% basis cost about $80 million.
Speaker Change: By the time, we get to proposals out to evaluate them and award a contract we would anticipate kicking off the feasibility study somewhere late in the third quarter or fourth quarter of this year. It's a process that we anticipate will take about two years.
Speaker Change: On a 100% basis cost about $80 million.
Speaker Change: Okay.
Nick Charles: Greg, that is. Super helpful. I appreciate that detail.
Speaker Change: Super helpful. I appreciate that detail, maybe my second question really.
Gregory Lang: Maybe my second question, really, with BEREC out of the picture now, how should we think about maybe the magnitude of annual spend changing or ultimately how funds will be allocated in 2025 or in 2026 and beyond? I think You know, now that I guess the noise from the transaction is behind us, I think our corporate spending will return to its historical levels. You know, at the Gondland site, expenditures will be higher as we embark on the feasibility study, but you know, not really substantially higher than this year, because we've got a drill program underway. And that's a fairly expensive activity.
Speaker Change: With Barrick out of the picture now how should we think about maybe the magnitude of annual spend changing or ultimately how funds will be allocated in 2025 or in 2026 and beyond.
Speaker Change: Alright, thank you.
Speaker Change: Yes, the noise from the transaction is behind US I think our corporate spending will return to its historical levels at the Donlin site expenditures will be higher as we embark on the feasibility study, but you know.
Speaker Change: Not really substantially higher than this year, because we've got a drill program underway and that's a fairly expensive activity.
Nick Charles: in 2026, the spending on the feasibility study will start to ramp up. But I think that, you know, I think as you look forward about the projects and Donlan's expenditures, the feasibility study will take about two years. So you could anticipate just making the math simple about $40 million each of those years. And our share of that would be, of course, 60%. So the spending at NoveGold, it will certainly increase as we move forward. And our treasury is, as Peter highlighted, it's very robust now. We have more than sufficient funds to take the company and the project through to a feasibility study and ultimately a construction decision.
Speaker Change: In 2026, the spending on the feasibility study, we will start to ramp up but I think.
Speaker Change: <unk> as you look forward about the project some dominance expenditures.
Sue: Thank you Sue.
Sue: This study will take about two years. So you could anticipate just making the math simple about $40 million each of those years and our share of that would be of course.
Sue: 60%.
Sue: Lending at Novo go that will certainly increase as we move forward and our treasury is in as Peter highlighted it's very robust now we have more than sufficient funds to take the company and the project through to feasibility studies and ultimately a construction decision.
Sue: Okay.
Nick Charles: Thanks again, and maybe one more if I could, I know it's a bit, it's a bit early, but you know, how are you thinking? You know, in this new phase, how are you thinking about funding the project? Is there kind of a debt to equity split you have in mind? Any color you can provide on ultimately financing later down the road? Well, sure, Nick.
Speaker Change: Thanks, again, and maybe one more if I could I know, it's a bit it's a bit early but you know how how are you thinking.
Sue: Hi.
Sue: The student base, how are you thinking about <unk>.
Sue: Funding. The project is there kind of a debt to equity split you have in mind any color you can provide on ultimately financing later down the road.
Sue: Sure I think at this stage I'll flip that question over to Dr. Catherine our chairman.
Dr. Kaplan: And I think at this stage, I'll flip that question over to Dr. Kaplan, our chairman. Thank you, Nick. Good to hear your voice. Appreciate your support. I'm not worried about financing.
Dr. Catherine: Thank you Nick and good to hear your voice I appreciate your support.
Speaker Change: I'm not worried about financing the toughest deal that I've done in 32 years that I've been in this business was the one that we just concluded.
Dr. Kaplan: The toughest deal that I've done in 32 years that I've been in this business was the one that we just concluded to make the purchase with Poulsen to buy out the Barrick stake. And let me explain why. I spoke to multiple very blue-chip names, who are brand names, who were willing to come into the story. Ultimately, John realized that this was literally the best opportunity he ever had. So in addition to being willing to come in, ultimately, he was willing to do the entire billion dollars himself. We worked it out amongst ourselves at the best thing for the NoveGold share price, and therefore to crystallize the value for him was through NoveGold having, in addition to all the other things that came with this alliance, a larger economic interest that would not disenfranchise him at all.
Speaker Change: To make the purchase with us.
Speaker Change: Polson to buyout, the Barrick stake and let me explain why.
Speaker Change: <unk>.
Speaker Change: I spoke to.
Speaker Change: Multiple <unk>.
Speaker Change: Blue Chip names.
Speaker Change: Who are brand names, who were willing to come into the story ultimately.
Speaker Change: John.
John: Realized that this was literally the best opportunity he ever had so in addition to being willing to come in and ultimately he was willing to do the entire $1 billion himself.
Speaker Change: We worked it out amongst ourselves that the best thing for the medical share price.
Speaker Change: And therefore to crystallize the value for him was through.
Speaker Change: Nova Gold having in addition to all the other things that came with this alliance.
Speaker Change: A larger economic interest that would not disenfranchise him at all.
Dr. Kaplan: But in that process. It was very apparent to me. that whereas there were those who might be willing to invest a quarter of a billion, every single one of them would have given us the billion dollars and wanted to put money into project finance.
Speaker Change: But are in that process.
Speaker Change: It was very apparent to me.
Speaker Change: That whereas there were those who might be willing to invest quarter of a 1 billion. Every single one of them would have given us the $1 billion and wanted to put money into project financing.
Dr. Kaplan: Um, had the FS, the feasibility study, been updated? Now, of course, there's a chicken and egg to that, because if we'd had the updated FS, which we hope to deliver in a couple of years, I think the share price would have been at least $15 anyway, which means, all things being equal, we would have had to pay four or five billion dollars for Barrick's stake, which would have been very, very difficult. So what we learned was that we have a lot of access to capital, we have tremendous goodwill from those who want to see the biggest gold mine in the United States in one of the safest places in the world get built.
Speaker Change: Had the FFS the feasibility study has been updated.
Speaker Change: Now of course, there's a chicken and egg to that because if we'd had the updated S, which we hope to deliver in a couple of years I think the share price would have been at least $15 anyway, which means all things being equal.
Speaker Change: We would've had to pay for a $5 billion for Barrick stake, which would've been very very difficult.
Speaker Change: What we learned was that we have a lot of access to capital we have tremendous goodwill from those who want to see the biggest gold mine in the United States in one of the safest places in the world get built.
Dr. Kaplan: in large numbers billion dollar $2 billion check. What the debt equity will look like remains to be seen because we have so many.
Speaker Change: In large numbers $1 billion 2 billion dollar checks.
Speaker Change: What's the debt equity will look like remains to be seen because we have so many.
Dr. Kaplan: Options ahead of us if you have an eight to ten year mine life You have certain limits if your mine life is measured in decades Starting with three potentially being five six seven eight You have the ability to use the resource in ways that can mitigate dilution Which is our agenda, you know 2012 When Greg and I came into Nova gold and we went out and you know did a tour to introduce ourselves as CEO and chairman respectively This is a unique story It's a very special situation And if there's one thing that I learned the toughest capital raising that I will ever have had to have done was the one we just did.
Speaker Change: <unk> ahead of US if you have an eight to 10 year mine life.
Speaker Change: You have certain limits if your mine life as measured in decades, starting with three potentially being 5678.
Speaker Change: You have the ability to use the resource in ways that can mitigate dilution, which is our agenda. You know we have not been promiscuous in capital Raisings last time before this exercise that we raised money was in 2012, when Greg and I came into Nova gold.
Speaker Change: And we went out and did it toward to introduce ourselves as.
Speaker Change: As CEO and chairman respectively.
Speaker Change: This is a unique story.
Speaker Change: It's a very special situation and if there's one thing that I learned the toughest capital raising.
Speaker Change: I will ever have had to have done.
Speaker Change: Was the one we just did and by the way let me just add the reason why.
Dr. Kaplan: And by the way, let me just add the reason why. We needed it to be. we needed this to be as closely held as possible. Over the last year, I have, we all have fretted that the purchase price might change because of our market capitalization changing. The reason why we bought this for $1 billion was because that was the value of the market cap of NoveGold when Mark Bristow and I had a conversation that led to me making an offer and his pondering it and accepting it.
Speaker Change: We needed it to be secret we needed this to be as closely held as possible over the last year.
Speaker Change: I have we all have fresh it.
Speaker Change: That the purchase price might change because of our market capitalization changing the reason why we bought this for $1 billion.
Speaker Change: <unk> was because that was the value of the market cap of Nova bold when Mark Bristow and I had a conversation.
Speaker Change: That led to me, making an offer and his pondering it and accepting it I tried to buy the other half of Donlin five times over the last 15 years.
Dr. Kaplan: I tried to buy the other half of Donlan five times over the last 15 years. One thing I've definitely learned, just because someone says no doesn't mean that you don't keep asking because circumstances have changed. That's exactly what happened with Barrick. Everybody understood that Barrick was making a pivot that ultimately became several days after the purchase that we made a pivot from Barrick Gold to Barrick Mining. Everyone understood that the 30% growth in gold equivalent production that Barrick is projecting is 80% copper. So we never got questions as to why Barrick wants to be able to pivot because they were literally moving from a pure gold profile with a little copper to trying to be a more diversified mining company.
Speaker Change: One thing I've definitely learned just because someone says no. It doesn't mean that you don't keep asking because circumstances have changed and that's exactly what happened with Barrick everybody understood that Barrick was making a pivot that ultimately became several days after the purchase that we made a pivot.
Speaker Change: From Barrick Gold Barrick mine.
Speaker Change: Mining.
Speaker Change: Everyone understood that.
Speaker Change: The 30% grew.
Speaker Change: Growth in gold equivalent production with Barrick as progestin projecting is 80% copper so we never got questions as to why Barrick.
Speaker Change: Wants to be able to pivot because they were literally moving from a pure gold profile with a little tougher to trying to be a more diversified mining company.
Dr. Kaplan: Unknown Attendee . . The issue that we had was we just didn't want this news to get out because candidly, I was afraid the stock would rise and then the deal would be lost. It's amazing, but things just worked out that way.
Speaker Change:
Speaker Change: The issue that we had was we just didn't want this news to get out because candidly I was afraid the stock would rise.
Speaker Change: And then the deal would be lost.
Speaker Change: And.
Speaker Change: It's amazing, but things just worked out that way.
Speaker Change: Well, it's all up that's all really helpful background. So I appreciate all the detail this morning and.
Nick Charles: Well, that's all that's all really helpful background. So I appreciate all the detail this morning and continue best of luck. Thank you very much.
Speaker Change: Best of luck.
Speaker Change: Thank you very much.
Speaker Change: Okay.
John O'shea: The next question comes from John O'shea, The Global Alliance Securities. Please go ahead.
John O'shea: The next question comes from John O'Shea with Global Alliance Securities. Please go ahead.
John O'shea: I have no question that's been answered. Great.
John O'shea: I have no question, it's been answered.
Speaker Change: Great H I will then turn it over to questions coming in via the webcast or first question comes from the line of Michael <unk> from Texas teachers.
Unknown Attendee: Aisha, I will then turn over to questions coming in via the webcast. Our first question comes from the line of Michael Pustavoy from Texas Teachers. Tom, you said that the next Donlin may be found within Donlin.
Speaker Change: Tom You said that the next time I may be found within Donlin, it's such a discovery work to materialize could.
Michael Pustavoy: If such a discovery were to materialize, could you share your thoughts on the potential geopolitical implications, specifically how it might Unknown Attendee, Rabi Nizami, Melanie Hennessey, Nicholas Giles, Fedor Shabalin, Peter Adamek, One of True Geopolitical and Monetary Significance. Thank you very much, Michael. As you yourself know, but which I'll elaborate just, you know, for our audience, as I mentioned, there has been no regional exploration done outside of the 8 kilometer belt that represents only 5% of the land package. It's for historical reasons. It had to do with the dynamic between Barrick, NoveGold, Barrick always believing that NoveGold would fall into their lap.
John O'shea: Could you share your thoughts on the potential geopolitical implications specifically how it might.
Speaker Change: How it might reposition donlin from a tier one asset.
Speaker Change: Zero.
Speaker Change: One is to geopolitical and monetary significance.
Speaker Change: Thank you very much Michael.
Speaker Change: <unk>.
Speaker Change: As you yourself know, but which I'll elaborate just for our audience.
Speaker Change:
Speaker Change: As I mentioned, there has been no regional exploration done outside of the eight kilometer belt that represents only 5% of the land package is for historical reasons. It had to do with the dynamic between Barrick, Nova Gold Barrick always believing that <unk> would fall into their lap. Therefore, why do you want to expand reserves to.
Dr. Kaplan: Therefore, why do you want to expand reserves to make NoveGold more valuable? Why do you want to advance it? So that there's a feasibility study that people can then see, you know, what gold prices are needed. And very interestingly, no regional exploration. And this is extremely important. because Some very, very smart. how should I put it, insights into the likelihood that a 40 million ounce occurrence is isolated without other occurrences in the vicinity is extremely low. We think it's unrealistically low.
Speaker Change: No for gold more valuable why do you want to advance it.
Speaker Change: So that there is a feasibility study that people can then see you know what gold prices are needed.
Speaker Change: And very interestingly.
Speaker Change: No regional exploration.
Speaker Change: And this is extremely important.
Speaker Change: Because.
Speaker Change: Some very very smart.
Speaker Change: How should I put it insights.
Speaker Change: Into the likelihood that a 40 million ounce occurrence.
Speaker Change: Is isolated.
Speaker Change: With out of.
Speaker Change: Other occurrences in the vicinity is extremely low.
Speaker Change: We think it is.
Speaker Change: Unrealistically low now donlin.
Dr. Kaplan: Now, Donlan is already a strategic asset in the scheme of geopolitics. Right now we have what's going to be called the gold wars and it's being fought. China buys all of its production and it's the largest producer in the world. It's also the largest importer of gold. Chinese estimates or Chinese statements about the size of their reserves, official reserves, are almost impossibly low unless they have the most sophisticated plumbing for retail distribution of any asset class in the world. We don't think that's the case. We think that gold is already part of the geopolitical narrative, certainly between the Chinese, the Russians, and other countries which have been large consumers of gold officially as well as unofficially.
Speaker Change: Donlin is already a strategic asset in the scheme of geopolitics right now we have whats going to be cold the bold wars.
Speaker Change: And it's being.
Speaker Change: Fault.
Speaker Change: Strategically.
Speaker Change: Hi.
Speaker Change: China and we reckon this administration.
Speaker Change: China buys all of production and it's the largest producer in the world. It's also the largest importer of gold.
Speaker Change: Chinese estimates or Chinese statements about the size of their.
Speaker Change: Our reserves official reserves are almost impossibly low unless they have the most sophisticated plumbing for retail distribution.
Speaker Change: Any asset class in the World. We don't think that's the case, we think that gold is already part of the geopolitical narrative certainly between the Chinese the Russians.
Speaker Change: And other countries, which have been large consumers of gold officially as well as on officially.
Dr. Kaplan: You don't, it doesn't have to be a conspiracy theory. The reality is that when a central bank buys gold, it's an act of volition. They know better than anyone else what it's like to have to buy assets during a crisis for political reasons. When they buy gold, it's for only one reason. Number one, they know that it's the safest asset in their reserves and number two, they're experiencing the revaluation of gold that could easily lead gold, I think is leading gold to multiples. Therefore being able to have an asset like Donlan, which would be producing, at its outset, a million and a half ounces a year and being able, we believe, to sustain that for life of mine is very valuable strategically.
Speaker Change: You don't it doesn't have to be a conspiracy theory. The reality is that when the central Bank Vice gold, it's an active volition.
Speaker Change: They know better than anyone else, what it's like to have goodbye assets during a crisis for political reasons when they buy gold. It's for only one reason number one they know that it's the safest asset in their reserves.
Speaker Change: And number two they are experiencing the revaluation of gold that could easily LEED gold and I think is leading gold to multiply therefore being able to have an.
Speaker Change: An asset like Donlin, which would be producing at its outset a million and a half ounces a year.
Speaker Change: And being able we believe to sustain that for life of mine.
Speaker Change: <unk> is very valuable strategically again, it will be the largest single gold mine in the United States. The only comparable for it is the Sukhoi log project, which is polyol project located in Russia, and we are on the right side of the bearings straights. This is where investors will go for one thing quantity.
Dr. Kaplan: Again, it will be the largest single gold mine in the United States. The only comparable for it is the Sukhoi Log Project, which is a Polyus project located in Russia and we are on the right side of the Bering Straits. This is where investors will go for quantity and quality.
Speaker Change: And quality.
Dr. Kaplan: If we are able to show that this is a string of pearls, like Carlin, or Nevada, all bets are off. We could turn ourselves into another Agnico, which of course would be brilliant, because that's a wonderful paradigm to seek to follow. Great management, excellent assets, and all safe jurisdictions. That's the paradigm. And Donlin could be one-stop shopping for that. Thank you.
Speaker Change: If we are able to show that this is a string of pearls like Carlin or Nevada, all bets are off.
Speaker Change: We could turn ourselves into another agnico.
Speaker Change: Of course, we'd be brilliant because that's a wonderful paradigm to seek to follow great management excellent assets and.
Speaker Change: All safe jurisdictions.
Speaker Change: The paradigm and donlin could be one stop shopping for that.
Speaker Change: Thank you.
Keith Redmond: We have a second question coming from the line of Keith Redmond. Can you share a timeline of when you hope to get to production?
Speaker Change: We have a second question coming from the line of Keith Redmond can you share a timeline of when you hope to get to production.
Gregory Lang: All right, well, Keith, thank you for your question. As I mentioned earlier, but to be clear, by the end of this year, we will begin updating the feasibility study and that'll take about two years. Concurrent with the study, we're also going to be evaluating financing options and just preparing ourselves so when the study is completed, and we certainly expect it will be positive. So when the study is completed, we'll be in a position to initiate the work at site, which we currently have the authorization to do with the wetlands permit. That two years will take us through the feasibility study and to build the site up will be about four years.
Speaker Change: Well Keith Thank you for your question.
Speaker Change: I mentioned earlier, but to be.
Speaker Change: To be clear by the end of this year, we will begin updating the feasibility study and that will take about two years concurrent with the study. We're also going to be evaluating financing options and just preparing ourselves. So when the study is completed and we certainly expect it will be positive. So when the study is completed we'll be in a position.
Speaker Change: To initiate the work at the site, which we currently have the authorization to do with the wetlands permit.
Speaker Change: About two years will take us through the feasibility study and to build the site up will be about four years.
Speaker Change: Thank you Greg and the final question coming from the webcast comes from the line no no quest.
Gregory Lang: Thank you, Greg.
Nils Melquist: And the final question coming from the webcast comes from the line of Nils Melquist from Long Nuke Advisors.
Speaker Change: Wow.
Speaker Change: Advisors are what are the immediate priorities of the Paulson partnership that are likely to close the valuation gap versus historical precedence.
Unknown Attendee: What are the immediate priorities of the Paulson Partnership that are likely to close the valuation gap versus historical precedents? Unknown Attendee, Rabi Nizami, Melanie Hennessey, Nicholas Giles, Fedor Shabalin, Peter Adamek, NoveGold Resources So they are 100% in agreement with us. That will get underway toward the end of this year. They're also supportive of the ongoing drill program that we have at site. And all of the activities, whether it's defending our permits, community engagement, you know, they are fully aligned with the approach that Donovan is taking.
Speaker Change: Okay.
Tom: I'll start with one and then flip it back to you Tom I think we are.
Speaker Change: Right now totally aligned with Parsons.
Speaker Change: We share the view that the next logical step to advance donlin up the value chain is to update the feasibility study. So they are 100% in agreement with us that will get underway towards the end of this year.
Speaker Change: They're also supportive of the ongoing drill program that we have at site and all of the activities, whether it's depending our permits community engagement.
Speaker Change: We are fully aligned with the approach the economy's take.
Speaker Change: I'll add this.
Dr. Kaplan: I'll add this. There are very, very few funds in the United States now which have dedicated gold analysts or experience in being able to assist in the navigation of an asset or a company up the value chain, as Paulson did with Detour, as they're doing now with Perpetua. I fully expect that both publicly, as well as behind the scenes, Paulson will be, at the very least, contacted by many investors who know John personally, who know his right hand, Marcello Kim personally have worked with them, made money with them. And when they ask, look, you know, we don't have the in-house capabilities that you do.
Speaker Change:
Speaker Change: There are very very few.
Speaker Change: The funds in the United States, now, which have dedicated gold analysts.
Speaker Change: Or experience in being able to assist in the navigation.
Speaker Change: An asset or a company up the value chain.
Speaker Change: <unk> Polson did with detour as Theyre doing now.
Speaker Change: With perpetua.
Speaker Change:
Speaker Change: I fully expect that both publicly as well as behind the scenes.
Speaker Change:
Speaker Change: Olson will be at the very least contacted by many investors who know John personally know his right hand.
Speaker Change: Marcelo Kim personally have worked with them made money with them.
Speaker Change: And when they ask look we don't have the in house capabilities that you do.
Speaker Change: Give us the Donlin story.
Dr. Kaplan: Give us the Donlan story. We believe that, well, we know that John will speak about the asset exactly as we do. He will say in its combination of attributes, it's not just the best gold development story. It's unique in its attributes. And that's going to be a shortcut for a lot of investors.
Speaker Change: We believe that but we know that John will speak about the asset exactly as we do he will say in its combination of attributes its not just the best skilled development story, it's unique in its attributes.
Speaker Change: And that's going to be a shortcut for a lot of investors and by the way because this is a transcendent.
Dr. Kaplan: And by the way, because this is a transcendent. Transaction with multiple catalysts for good news going forward. I don't think it's unreasonable to believe that we will go from very sparse coverage of a story which didn't have much to talk about to very considerable analytical coverage, which will be able to provide, again, a shortcut for people to be able to have access to knowledgeable advice who will be able to bring them up to speed on this story. And lastly, of course, but not least, As I've said, it's not possible to say that someone like myself, who in the last offering maintained their 25% holding in the company, or John Paulson pulling the trigger on an $800 million investment and being willing, if needed, to have purchased more shares of NoveGold to make sure this transaction went through in the best way for NoveGold.
Speaker Change:
Speaker Change: Transaction with multiple catalysts for good news going forward.
Speaker Change: I don't think it's unreasonable to believe that we will go from very sparse coverage of a story, which didnt have much to talk about.
Speaker Change: Two very considerable analytical coverage, which will be able to provide again, a shortcut for people to be able to have access to knowledgeable advice, who will be able to bring them up to speed.
Speaker Change: On the story and lastly of course, but not least.
Speaker Change: As I've said, it's not possible to say that someone like myself, who in the last offering.
Speaker Change: <unk> maintained their 25% holding.
Speaker Change: In the company or John Polson, pulling the trigger on an $800 million investment and being willing.
Speaker Change: If needed to have purchased more shares of a noble goal to make sure. This transaction went through and the best way for Nova goal, we have everyone aligned on wanting the Nova gold share price to go up we are in such a better position on every level than we were.
Dr. Kaplan: We have everyone aligned on wanting the NoveGold share price to go up. We are in such a better position on every level than we were five years ago when we were a $4 billion market cap or $12 stock. Every position. Now we only have tailwind. Gold, fully aligned partner, having a partner that wants to talk about the virtues of Donlin rather than suppressing the share price for a different agenda. The one headwind we had was gone. And once we start to gain momentum, I fully expect that we will be breaking through and making all-time highs, not just because of the attributes that we all bring to the table, but because for the first time, everybody is rowing in the same direction or singing from the same hymn book, whatever you want, and putting their money where their mouth is.
Speaker Change: Five years ago, when we were a $4 billion market cap or $12 stock every position now we only have tail winds.
Speaker Change: <unk> fully aligned partner, having a partner that wants to talk about the virtues of donlin, rather than suppressing the share price for a different agenda.
Speaker Change: The one headwind we had was gone.
Speaker Change: And once we start to gain momentum I fully expect that we will be breaking through and making all time highs.
Speaker Change: Not just because of the attributes that we all bring to the table, but because for the first time everybody is rowing.
Speaker Change: In the same direction or singing from the same hymn book.
Speaker Change: Whatever you want and putting their money where their mouth is this isn't just talk we are absolutely deadly serious about being able to recapture the lost ground catching up with the Gtx Jay and then doing what we traditionally have done which is Egypt as the most.
Dr. Kaplan: This isn't just talk.
Dr. Kaplan: We are absolutely deadly serious about being able to recapture the lost ground, catching up with the GDXJ, and then doing what we traditionally have done, which is as the most highly rated gold development story in the world.
Speaker Change: Highly rated gold development story in the World.
Speaker Change: Thank you. Thank you Tom before we turn it back to Greg I would just like to remind our listeners that doctor Kaplan's letter to shareholders. Most recently published and is available on the homepage of our website I'll provide some macro views on gold a overview of the transaction. So I would encourage you as an inter.
Melanie Hennessey: Thank you, Tom. Before we turn it back to Greg, I would just like to remind our listeners that Dr. Kaplan's letter to shareholders was recently published and is available on the home page of our website. It provides some macro views on Gold, an overview of the transaction. So I would encourage you, it is an interesting read.
Speaker Change: Christine Reid and with that I'll hand, it back over to Greg.
Gregory Lang: And with that, I'll hand it back over to Greg. Thank you, Melanie. And thank you, everyone. for joining our second quarter webcast and update.
Speaker Change: Thank you Melanie and thank you everyone.
Speaker Change: For joining our second quarter webcast and update.
Operator: That concludes our presentations.
Speaker Change: That concludes our presentation. This morning.
Speaker Change: This brings still close today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.
Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
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