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May 31, 2020
Novagold Q2 2020 Earnings Report
Reported second quarter financial results and provided an update on Donlin Gold project.
Key Takeaways
NOVAGOLD released its 2020 second quarter financial results and provided an update on its Donlin Gold project. The Donlin Gold drill program was resumed with four re-mobilized rigs, maintaining a strong focus on COVID-19 health and safety measures. The company continues to support communities in the Yukon-Kuskokwim region.
Re-mobilized four drill rigs to advance Donlin Gold with comprehensive COVID-19 health protocols in place.
Implemented policies at offices in Salt Lake City and Vancouver to ensure the safety and well-being of all employees.
Donlin Gold held weeks of conversations with community and tribal leaders in the Y-K region to ensure safety precautions for Donlin Gold personnel met the needs of each community prior to re-mobilization of drill rigs and re-opening camp.
The company is projecting annual expenses totaling $31 million.
Forward Guidance
NOVAGOLD anticipates spending approximately $31 million in 2020, with the majority allocated to the Donlin Gold project's drill program, permitting, community engagement, and general & administrative costs. The primary goals for 2020 are to advance the Donlin Gold project, maintain a healthy balance sheet, and continue 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 environmental stewardship and social responsibility.
- Advance permitting efforts for the project.
Challenges Ahead
- Need to obtain additional permits and governmental approvals.
- The timing and likelihood of permits
- The need for additional financing to explore and develop properties and availability of financing in the debt and capital markets
Historical Earnings Impact
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Avg. Return Before/After Earnings
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