NOVAGOLD Files Third Quarter 2025 Report

Executive Summary

• Completed a $1 billion acquisition of Barrick Mining’s 50% interest in Donlin Gold, increasing NOVAGOLD’s stake to 60% and raising $260 M from equity offerings.
• Reported Q3 2025 results: cash $125 M, net loss $(15.6) M, earnings per share $(0.04); cash outflows driven by the acquisition and Donlin Gold funding.
• Finished an 18,454‑m drill program with high‑grade intercepts up to 23.49 g/t Au; issued RFP for a Bankable Feasibility Study (BFS) expected to be awarded by year‑end.

Key Details

• Acquisition: $1 billion purchase of Barrick’s 50% interest; NOVAGOLD paid $200 M for an additional 10% and Paulson funded the remaining 40% with $800 M.
• Financing: Full exercise of underwriters’ overallotment option on June 5, 2025 – 7,177,500 shares at $3.75/share → $26 M net proceeds; total public offering raised ~$195.2 M, plus a concurrent private placement of $64.4 M (total equity proceeds ≈ $260 M).
• Cash Position: End‑Q3 cash and term deposits $125 M; cash expenditures $9 M (Donlin Gold funding $8.1 M, G&A $0.9 M).
• Quarterly Financials: Net loss $(15.6) M; EPS $(0.04); cash equivalents down $235.6 M YoY due to acquisition payment ($210.1 M) and related costs.
• Drilling Program: 18,454 m total; highlights include five top intercepts ranging 3.77–23.49 g/t Au; activities: 19 grid infill holes (5,079 m), 24 in‑pit exploration holes (10,370 m), 4 geotechnical holes (2,607 m) plus access‑road drilling (399 m).
• Resource Update: Donlin Gold holds ~39 M oz Measured & Indicated Resources at 2.24 g/t Au (inclusive of reserves); NOVAGOLD’s attributable share reflects its 60% ownership.
• BFS RFP: Issued to top‑tier engineering firms; contract award anticipated before year‑end, with work to commence shortly thereafter.
• Community & Environmental Work: Engaged with Calista Corp., Kuskokwim Corp., and local councils; advanced habitat restoration at Snow Gulch; completed 19 Shared Values Statements with Y‑K communities.
• Regulatory Status: Federal and state permits in hand; ongoing litigation updates (Alaska Supreme Court decisions pending, federal court orders on NEPA analysis).
• Outlook: Expect NOVAGOLD’s share of Donlin Gold funding to rise to $24 M for 2025; corporate G&A budget increased to $18 M; anticipate additional drill results and BFS award as near‑term catalysts.

Notable Quotes

“The acquisition of our increased 10 percent stake and the arrival of an aligned co‑owner have put a spotlight on Donlin Gold… it is the ‘Holy Grail’ of the industry.” – Gregory A. Lang, President & CEO