Executive Summary

Q1 FY2025 tracked to plan: net loss improved year over year on lower stock-based compensation and lower Donlin expenditures, with cash and term deposits of ~$93 million at quarter-end and Q1 cash expenditures of $8.3 million (Donlin $3.6m; corporate G&A $3.8m) .
EPS modestly beat S&P Global consensus: actual EPS of ($0.03) vs consensus of ($0.040), a beat of ~$0.01 per share, driven by lower SBC and Donlin spend; partially offset by lower interest income (consensus from S&P Global)* .
2025 spending guidance maintained: ~$37.5 million total (Donlin $21.5m; corporate G&A $16m), with Donlin’s 2025 project budget at $43 million on a 100% basis; drill program underway (15,000 meters) to support mine planning inputs and a potential feasibility study decision thereafter .
Legal/regulatory remains a watch item but not on the critical path: remedy briefing completed and oral arguments scheduled for April 14, 2025, on the court’s request to evaluate a larger theoretical tailings-release scenario under NEPA; management views the matter as narrow and manageable .
Near-term catalysts: drill results/field program progress, April 14 oral argument outcome, and subsequent owner decision on feasibility study (est. $80–$100m, ~2 years to complete once initiated), against a constructive gold-price backdrop highlighted by management .

What Went Well and What Went Wrong

What Went Well

Cost discipline: Net loss decreased by ~$1.2 million year over year on lower stock-based compensation and lower Donlin expenditures; G&A otherwise in line with prior year .
Strong liquidity runway: Cash and term deposits totaled ~$93 million at quarter-end; company reiterates ability to fund its share of activities for the next two years at current spending levels .
Execution on 2025 plan: Camp opened in February; drilling started in March; ~15,000 meters planned to refine mine planning parameters and “modifying factors” for eventual resource-to-reserve conversion workstreams .
- “Our net loss in the first quarter of 2025 decreased by $1.2 million… primarily due to lower stock-based compensation expense and lower Donlin Gold expenditures” — CFO .
- “This year’s program includes three rigs that will drill some 15,000 meters, primarily focused on grid drilling to further develop the modifying factors and input parameters and assumptions for future mine planning” — Management .

What Went Wrong

Lower interest income: Management cited lower interest income as a headwind relative to the prior year, partially offsetting the benefit from lower SBC and Donlin spend .
Ongoing legal overhang: Federal court required additional NEPA analysis of a larger theoretical tailings release; remedy briefing completed with oral arguments April 14, 2025, prolonging resolution timing .
Timeline risk/complexity to next phase: A bankable feasibility study, once initiated, would cost an estimated $80–$100 million and take ~2 years; owners have not yet made the go-forward decision .

Financial Results

Note: NOVAGOLD is a development-stage company with no production; no commercial revenue reported .

P&L and Liquidity (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Net Loss ($USD Millions)	$10.7	N/A	$9.1
Diluted EPS ($USD)	N/A	N/A	($0.03)
Cash & Term Deposits ($USD Millions)	N/A	$101.224	$92.969
Cash and Cash Equivalents ($USD Millions)	$45.6	N/A	N/A
Term Deposits ($USD Millions)	$60.0	N/A	N/A

Q1 2025 vs S&P Global Consensus

Metric	Actual	Consensus	Surprise
EPS ($USD)	($0.0299)*	($0.0402)*	+$0.0103*

Values marked with * retrieved from S&P Global.

Operating Detail/KPIs

KPI	Q1 2025	Commentary
Net cash expenditures ($USD Millions)	$8.3 (Donlin $3.6; G&A $3.8)	In line with budget; interest income and ~$1m proceeds from sale of marketable securities partially offset uses
Cash & term deposits ($USD Millions)	$92.969	Robust liquidity to support 2025 plan
Donlin 2025 field program	~15,000 meters; drilling commenced March	Grid drilling to refine mine planning inputs; three rigs operating
Donlin 2025 budget (100% basis)	$43 million	Includes drilling, geotechnical/geoscience work, planning, dam certification, community/permits support
NOVAGOLD 2025 budget	~$37.5 million (Donlin $21.5m; G&A $16m)	Maintained; Q1 pacing below Donlin run-rate as site activities began late in quarter

Segment breakdown: Not applicable (single, 50%-owned Donlin Gold project; development-stage, no producing segments) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total cash expenditures	FY 2025	~$37.5m (Donlin $21.5m; G&A $16m)	~$37.5m (Donlin $21.5m; G&A $16m)	Maintained
Donlin project budget (100% basis)	FY 2025	$43m (communicated at year-end)	$43m (reaffirmed)	Maintained
Liquidity runway	Multi-year	“Strong treasury over $100m” (Nov 30, 2024)	“Well-prepared to fund its share of activities for next two years at current spending levels”	Affirmed liquidity outlook
Dividend/other financial guidance	FY 2025	None disclosed	None disclosed	N/A

Earnings Call Themes & Trends

Topic	Q3 2024 (older)	Q4 2024 (prior)	Q1 2025 (current)	Trend
Permitting & litigation	Federal court upheld 2/3 issues; NEPA remedy briefing scheduled; Alaska dam safety certification prelim packages submitted; state cases briefed	Dam Safety Certification progression with preliminary design packages; decisions anticipated 2025–2026; state and federal litigation updates	Remedy briefing completed; oral arguments Apr 14, 2025; state water permits extended; tailings dam certification work advancing	Stable—process advancing; legal scope narrowed
Field program & feasibility path	Resource model, pilot plant test work, hydrology/geochem updates to feed future FS	2025 plan set; $43m budget including grid drilling and cost estimate foundations	Camp opened; drilling commenced; 15,000m grid drilling to refine mine planning inputs; owners yet to decide on FS	Intensifying execution pre-FS
Gold price environment	Supportive for long-life, high-grade projects	Positive macro, majors’ discipline; policy tailwinds discussed	“Unprecedented” gold prices; Donlin leverage emphasized	More constructive
Treasury & spend	Year-to-date cash decrease ~$7m in Q3; budget ~$31m for FY2024	Cash & term deposits $101.2m (Nov 30); 2025 budget ~$37.5m	Cash & term deposits ~$93m (Feb 28); Q1 cash burn $8.3m; 2025 budget maintained	Within plan
Community & ESG	Salmon monitoring, backhaul program; engagement across Y-K communities	Continued restoration/engagement; bipartisan support noted	Ongoing outreach; local hiring; ice-road support; safety record emphasized	Sustained

Management Commentary

Strategic focus: “NovaGold's priority remains focused on the work necessary to ultimately support a new bankable feasibility study… With a strong treasury of approximately $93 million, NovaGold is well positioned to fund our activities for the coming years” .
On Q1 drivers: “Net loss… decreased by $1.2 million… primarily due to lower stock-based compensation expense and lower Donlin Gold expenditures, partially offset by lower interest income” .
On gold leverage and jurisdiction: “These are unprecedented times… gold price… hitting new records… Donlin Gold brings exceptional leverage in a jurisdiction where you can keep it” .
On legal outlook: “The judge’s ruling was very narrow… not really anything that’s on our critical path” .
On feasibility study: “Estimated cost… about $80–$100 million… approximately 2 years. The owners… have not reached that decision yet” .

Q&A Highlights

Litigation scope/timing: Management characterized the NEPA issue as narrow, with remedy oral arguments set for April 14; work expected to take 6–8 months, not seen as on the critical path .
Feasibility study cost and timeline: FS would cost $80–$100 million and take ~2 years once initiated; decision pending completion of 2025 drilling and analysis .
Investor impatience and pace: Team aims to finish close-spaced grid drilling by late May/early June, digest results, and then consider next steps with partner Barrick; high gold prices are a motivator .
Ore processing: Donlin ore is largely refractory; flowsheet includes concentrate pressure oxidation in autoclaves—a proven technology with deep team experience .
Liquidity/funding: Treasury seen as sufficient for 2025 program; litigation defense ongoing with agencies, not viewed as a critical item .

Estimates Context

Q1 FY2025 EPS actual ($0.0299) vs S&P Global consensus ($0.0402) yielded a beat of ~$0.0103 per share; revenue estimates are not meaningful for a development-stage company with no production (consensus for revenue effectively nil)* .
Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Execution is tracking to plan: drilling launched, 15,000m program underway to tighten mine planning inputs ahead of a potential FS decision later (post-2025 program) .
Costs and liquidity are well managed: Q1 cash spend $8.3m; YE2024 cash & term deposits of ~$101.2m stepped down to ~$93.0m, still sufficient to fund two years at the current pace .
Legal overhang is bounded: the court’s NEPA issue is limited to evaluating a larger theoretical tailings release; remedy briefing complete, arguments April 14; management does not see it on the project’s critical path .
Macro tailwinds are strengthening the narrative: management emphasized Donlin’s leverage to record gold prices and the advantages of a Tier One jurisdiction .
Guidance unchanged: 2025 budget maintained at ~$37.5m (Donlin $21.5m; G&A $16m); Donlin 2025 budget at $43m on 100% basis; expect Donlin spend to ramp in Q2–Q3 as field activities scale .
Watch catalysts: drilling updates, April 14 hearing outcome, potential FS decision timing and cost framework (if/when owners elect to proceed) .
Risk/reward: With no revenues and a large-scale development ahead, shares remain sensitive to permitting/legal milestones, gold prices, and clarity on FS timing and funding .

Notes:

All figures are USD unless otherwise noted.
Values from GetEstimates (S&P Global) are marked with * and sourced from S&P Global consensus.

NOVAGOLD RESOURCES INC (NG)·Q1 2025 Earnings Summary