Novagold Resources (NYSEAMERICAN:NG) executives used the company’s fiscal 2025 year-end conference call to outline progress at the Donlin Gold project in Alaska, discuss the impact of a major ownership change completed earlier in the year, and review financial results and planned spending for fiscal 2026.
Leadership highlights alignment following Donlin ownership transaction
Chairman Dr. Thomas Kaplan focused much of his remarks on the company’s changed partnership structure at Donlin following the acquisition of a portion of Barrick’s interest. Kaplan said the deal improved alignment among the owners and described the transaction as “catalytic,” arguing the company is still early in what he characterized as a broader market revaluation.
Kaplan also emphasized jurisdictional considerations, repeatedly pointing to Alaska as a location where investors can “sleep well at night” relative to higher-risk mining jurisdictions, and described Donlin as having significant leverage to the gold price.
Fiscal 2025 financial results: higher loss, larger treasury after financings
Chief Financial Officer Peter Adamek reported a fiscal 2025 fourth-quarter net loss of $15.6 million, up $4.7 million from the comparable prior-year quarter. Adamek attributed the increase primarily to higher site activity at Donlin Gold and higher general and administrative expenses. He noted the quarter reflected the company’s second consecutive quarter with a 60% interest in Donlin.
For the full fiscal year 2025, Novagold reported a net loss of $94.7 million. Adamek said results included a $39.6 million non-cash, non-recurring charge related to warrants issued as consideration for a backstop commitment supporting the Donlin transaction. Excluding that one-time item, he said corporate G&A expenses were “largely unchanged” from the prior year, while Donlin expenditures rose by $9 million due to the 2025 field program.
Adamek said the company ended fiscal 2025 with a treasury of $115.1 million, an increase of $13.9 million over the year. He said Novagold completed a public offering and a private placement that generated $259.6 million in net proceeds, and used $210.1 million (including consideration and transaction costs) to acquire the additional 10% of Donlin at the start of the third quarter of fiscal 2025.
Novagold’s fiscal 2025 cash expenditures totaled $41.2 million, which Adamek said came in slightly below guidance due to somewhat lower spending at Donlin and marginally higher corporate G&A costs tied to professional fees following the Donlin transaction closing.
Guidance: fiscal 2026 spending projected at about $98.5 million
Looking ahead, Adamek said anticipated fiscal 2026 expenditures are approximately $98.5 million, including:
- $78.8 million for Novagold’s 60% share of Donlin Gold expenditures
- $19.7 million for corporate general and administrative costs
In response to analyst questions, management said the 2026 Donlin budget is expected to cover a range of activities as the project advances, including the bankable feasibility study and work on specialized project components.
Donlin site work, permitting status, and feasibility study timeline
President and CEO Greg Lang described fiscal 2025 as “a very active year” at the Donlin site. He said the team completed an 18,000-meter drill program, reported an “impeccable” safety record, and said more than 80% of employees were hired from villages near the site. Lang said drilling results will be used to improve geological modeling, support resource conversion efforts, and inform geotechnical work for facility designs.
Lang also said the company updated its technical report for regulatory compliance ahead of the feasibility study. On the call, he reiterated that Donlin has completed the federal permitting process and is “substantially” through state permitting. He said Donlin is among few projects where timing decisions are “solely in the hands of the owners,” rather than dependent on major permitting milestones.
Lang said the company continues to support state and federal agencies in defending existing permits, noting that court rulings to date have validated the environmental impact statement work and associated permits. He added that Donlin’s federal permit was remanded for a “small additional study” requiring a supplemental environmental impact statement (EIS) related to tailings-release scenarios. He said the supplemental EIS work is well advanced and has been incorporated into the FAST-41 program, which establishes timelines for federal reviews.
In a webcast question, Lang said the tailings dam design is “finalized” and submitted to the state, and he did not anticipate changes. He described the tailings dam as a downstream rock construction anchored into bedrock and “fully lined.”
Lang said the company expects to announce the engineering firm selected to complete the bankable feasibility study within “the next few weeks.” He said the feasibility work is expected to take about 18 months. The company also said it hired Frank Arcese as project manager.
Infrastructure discussions and exploration optionality
Lang discussed a non-binding letter of intent with Glenfarne Group related to potential natural gas supply tied to efforts to bring gas from Alaska’s North Slope to the Cook Inlet. He said the parties plan to advance discussions on a supply agreement as Glenfarne’s pipeline plans progress.
Asked by BMO Capital Markets about the desired structure of an agreement with Glenfarne, Lang said discussions are at an early stage and described them as a “clean slate.” He said Glenfarne has expressed interest in building and operating a pipeline and that management views this as a logical part of the project to carve out. He also said the pipeline concept is not new, is already permitted, and would follow the existing Trans-Alaska Oil Pipeline corridor, adding that investors should watch for potential announcements regarding Glenfarne’s financing efforts.
On exploration, Lang emphasized that only a small portion of the Donlin land package has been explored and said the orebody remains open at strike and depth. However, he told B. Riley Securities that near-term priorities are focused on launching the feasibility study, with exploration planning to be developed with its partner once feasibility work is well underway.
Addressing a question on strip ratio changes in the technical report, Lang said the strip ratio “ticked up” due to flattened pit slopes in certain areas and a different view of dilution, items he said would be revisited as work proceeds for the feasibility-study model.
About Novagold Resources (NYSEAMERICAN:NG)
Novagold Resources Inc is a mineral exploration and development company headquartered in Vancouver, British Columbia. The firm is focused on advancing large-scale precious metals projects through disciplined project management, environmental stewardship and community engagement. Novagold maintains a lean corporate structure while leveraging partnerships and industry expertise to advance its projects toward production.
The company’s flagship asset is the Donlin Gold project in Alaska, a 50/50 joint venture with Barrick Gold Corporation.
