NOVAGOLD Files Third Quarter 2026 Report Unlocking Donlin Gold's Full Potential and Advancing the Path To Development

Novagold Resources Inc. (NYSE: NG) released its third-quarter 2026 results on Thursday, covering the period ended August 31, 2026. The development-stage company reported a net loss of $36.0 million, or $0.08 per share. This represents a sequential widening from the $25.5 million loss, or $0.06 per share, recorded in the second quarter of 2026, and the $15.4 million loss, or $0.04 per share, in the first quarter of 2026. The company attributed the increase in losses to ongoing Base Case Feasibility Study (BFS) expenditures at the Donlin Gold project and higher general and administrative (G&A) costs driven by professional fees related to pending transactions.

As of August 31, 2026, Novagold held cash and term deposits of approximately $343.4 million. This balance decreased from $370.2 million at May 31, 2026, but rose sharply from $125.2 million at August 31, 2025, a figure that reflected the company’s pre-financing balance. During the third quarter, operational cash expenditures totaled $28.1 million, consisting of $24.8 million for Novagold’s 60% share of Donlin Gold and $3.3 million in corporate G&A.

The company raised its full-year 2026 operating expenditure guidance by $11.5 million to approximately $110.0 million. The breakdown includes corporate G&A of approximately $31.2 million, excluding share-based compensation, which is higher than previous estimates, while Donlin Gold funding guidance remains unchanged at approximately $78.8 million, representing the 60% share. The $11.5 million increase comprises $7.7 million in legal and professional fees already incurred plus $3.8 million anticipated in the fourth quarter, all tied to the Transactions.

Management stated it is fully funded to complete the Donlin Gold BFS and exercise its option to prepay the Barrick promissory note in the fourth calendar quarter of 2026. The company expects to raise additional capital in the future to support subsequent project activities, including the commencement of detailed engineering.

Novagold is proceeding with a previously announced transaction, first disclosed on July 22, 2026, to acquire Paulson’s 40% interest in Donlin Gold via an all-share plan of arrangement. This transaction would create "New NOVAGOLD," a U.S.-domiciled parent company listed on the New York Stock Exchange owning 100% of Donlin Gold. The deal is expected to close by the end of 2026, subject to shareholder, court, regulatory, and exchange approvals. A Special Meeting is scheduled for November 3, 2026.

The BFS remains on schedule for completion in 2027, with a transcript citing a first-half 2027 timeline. The study is led by Fluor, with WSP, Worley, and Hatch involved. Front-end engineering design (FEED), resource modeling, mine planning, and a Class 3 estimate are currently underway. For project and infrastructure financing, Donlin Gold appointed Endeavour Financial and Macquarie Capital as financial advisors, a move announced on August 11, 2026.

Regarding permitting, the U.S. Army Corps of Engineers published the Supplemental Environmental Impact Statement on September 23, 2026, following the quarter-end. The document analyzes a larger theoretical tailings dam release while leaving federal permits in place. The public comment period ends on October 23, 2026, with a Final Supplemental Environmental Impact Statement anticipated in April 2027. Dam Safety Certificates are expected in 2028.

Novagold Resources Inc. (NG) issued a quarterly report alongside a restatement of previously disclosed strategic items. The company confirmed that its transaction, announced on July 22, 2026, remains on track. This deal adds 16 moz Measured and Indicated resources and 13 moz Probable Reserves, increasing attributable production by more than 520 koz/yr and raising pro forma equity value to approximately $4.9 billion. The transaction is scheduled for a shareholder vote in November.

Financial advisors were appointed on August 11, 2026, a detail repeated in the current release. Third-quarter results reflected negative earnings with no revenue, declining cash due to Bear Creek Project (BFS) spending, and elevated transaction-related fees. The company revised its full-year 2026 operating expenditure guidance upward by $11.5 million, a figure attributed to one-time transaction costs rather than operational deterioration.

Key financial and operational metrics include: - FY2026 opex guidance raised by $11.5 million - Net loss widened sequentially - Cash fell approximately $27 million quarter-over-quarter - BFS timing remains set for 2027 - Donlin funding guidance stands at $78.8 million for a 60% share - The company remains fully funded - Barrick prepayment plan is set for Q4 2026 - Permitting status is unchanged

The company also noted that the Social and Environmental Impact Statement (SEIS) publication, with a draft expected in September 2026, preserves existing permits. Prior-period context not disclosed in today’s release includes a FY2025 net loss of $94.7 million, which included a one-time $39.6 million warrant charge. In February 2026, Novagold completed a $310 million bought deal at $10.00 per share. This followed a $1 billion transaction with Barrick in June 2025 that increased Novagold’s ownership from 50% to 60%.

Novagold Resources Inc. (NG) is a well-financed precious-metals development company with no producing assets. Its flagship and sole material asset is the Donlin Gold project in southwestern Alaska, held through Donlin Gold LLC. The entity is currently owned 60% by Novagold and 40% by Paulson, with a target to become 100% owned by Novagold.

The project’s resource base comprises approximately 40 million ounces of gold in Measured and Indicated Mineral Resources on a 100% basis, totaling ~560 Mt at 2.22 g/t. This figure is inclusive of Proven and Probable Mineral Reserves. Management notes this grade is more than double the ~1.05 g/t global industry average for deposits over 1 moz. The reserves include Proven resources of ~9 Mt at 2.29 g/t and Probable resources of ~495 Mt at 2.02 g/t, both on a 100% basis.

The production profile projects an average of ~1.3 moz/yr over the first 10 full years, and ~1.1 moz/yr over a 27-year mine life, on a 100% basis. The project is currently in pre-construction, advancing a Bankable Feasibility Study led by Fluor with specialist contractors WSP (power plant), Worley (natural gas pipeline), and Hatch (pressure oxidation circuit / oxygen plant). The BFS is targeted for completion in 2027.

Exploration upside remains significant, as resources have been defined on well under 10% of an 8-kilometer mineralized trend. The project is located in Alaska, which the company describes as one of the safest mining jurisdictions in the world. Landowners are Calista Corporation and The Kuskokwim Corporation.

A key distinction to preserve is that the 40 moz resource and >1 moz/yr production are mine-level (100% basis) figures. Novagold’s attributable interest is 60% today and would become 100% only on deal close.