NovaGold Resources Inc. reported a net loss of $11.1 million in its 2023 third-quarter earnings call, weighed down by expenses at the Donlin Gold project. Despite this, the company saw a rise in cash and term deposits by $21.1 million during the quarter. NovaGold anticipates spending approximately $13 million on General and Administrative (G&A) costs, $18 million to fund the Donlin Gold project, and $1 million on remediation costs in the near term.
Key takeaways from the call include:
- NovaGold highlighted the potential of the Donlin Gold project, which boasts approximately 39 million ounces of gold at a grade of 2.25 grams, twice the industry average.
- The company achieved several milestones in Q3, including completing fieldwork and geotechnical drilling for dam safety certificates and validating the geologic and resource model.
- NovaGold has received federal and state permits and certificates for the Donlin project, which is situated on private land designated for mining in Alaska.
- The company expects to provide a project update in the coming month, and believes the current economic conditions will be positive for gold, forecasting a sharp upward price movement.
The Donlin Gold project, located in Alaska, is known for responsible mining practices and has a projected mine life of nearly 30 years. NovaGold has been focused on creating a maximum leveraged pure gold play on the project. The company also highlighted its community activities and collaborations with Alaska Native Corporations during the call.
CEO Greg Lang discussed the company's progress and future plans, including fine-tuning adjustments to enhance the project, specifically in metallurgy and flotation cell recovery. He also mentioned that the project's infrastructure and general assumptions remain unchanged.
Lang attributed resource investors' reluctance to a strong dollar, rising yields, and inflation. However, he expressed optimism that once the Federal Reserve signals the end of interest rate hikes, gold prices will stabilize or even increase, benefiting the gold market.
Regarding the company's energy needs, Lang stated that bringing gas to the site is the most viable option. NovaGold is open to partnering with a third-party to own and operate the pipeline for the Donlin Gold project. The call concluded with Lang expressing gratitude for the shareholders' interest and outlining plans for the next year.
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