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Feb 29, 2020
Novagold Q1 2020 Earnings Report
Announced first quarter 2020 financial results and provided an update on its flagship Donlin Gold project in Alaska, while implementing strong COVID-19 precautionary measures.
Key Takeaways
NOVAGOLD released its 2020 first quarter financial results, highlighting achievements at the Donlin Gold project in Alaska, including the initiation of a project optimization drill program and receipt of multiple state permits and authorizations, all while maintaining a strong financial position and implementing COVID-19 precautions.
Implemented strong COVID-19 precautionary measures at its offices and with Barrick Gold at Donlin Gold.
Initiated project optimization drill program at Donlin Gold.
Received multiple state permits and authorizations for the Donlin Gold project.
Maintained a strong financial position with approximately $241 million in cash on hand and receivables.
Novagold
Novagold
Forward Guidance
NOVAGOLD anticipates spending approximately $31 million in 2020, with a focus on advancing the Donlin Gold project, maintaining a healthy balance sheet, and continuing an effective corporate social responsibility program.
Positive Outlook
- Continue to advance the Donlin Gold project toward a construction/production decision.
- Maintain a healthy balance sheet.
- Continue an effective corporate social responsibility program.
- Focus on engineering excellence.
- Focus on environmental stewardship.
Challenges Ahead
- Risk of COVID-19 exposure.
- Potential delays in drill program due to COVID-19 measures.
- Uncertainties involved in the interpretation of drill results and geological tests.
- The need for continued cooperation between NOVAGOLD and Barrick Gold Corp.
- Unexpected cost increases.