Executive Summary

Year-end (Q4 FY2024) update centered on liquidity and Donlin Gold execution: FY2024 net loss was $45.6M (EPS -$0.14), with cash and term deposits at $101.2M at Nov 30, 2024, positioning NG to fund planned 2025 activities without new equity .
The Donlin Gold Board approved a 2025 budget of $43M (100% basis), with ~$15M for grid drilling to refine mine planning and $5M to lay groundwork for capital and operating cost updates—key steps toward an updated feasibility study and, ultimately, a construction decision .
Permitting/legal progressed: Dam Safety Certification preliminary design packages were submitted in 2H 2024, with ADNR comments expected in 2025 and potential issuance in 2026/27; federal litigation largely upheld permits, with remedy briefing scheduled to conclude in early Feb 2025 .
Consensus estimates: Wall Street (S&P Global) quarterly revenue/EPS estimates were unavailable due to data access limits; as a development-stage, pre-revenue company, the focus remains on cash burn and milestones rather than revenue/EPS beats [GetEstimates tool error – Daily Request Limit Exceeded].

What Went Well and What Went Wrong

What Went Well

Liquidity intact and spend below plan: FY2024 net annual cash expenditures were $24.5M, below the $31.2M guidance; year-end cash/term deposits were $101.2M, supporting at least two years of activities at current spend levels .
Clear 2025 work program: Donlin Board approved a $43M (100% basis) 2025 budget including ~$15M drilling and cost estimate groundwork—tangible steps toward an updated feasibility study path .
Permitting momentum: Dam Safety preliminary design packages were submitted; several state permits administratively extended; federal court upheld agencies on 2 of 3 issues (no vacatur), with remedy process ongoing—maintains project optionality .

What Went Wrong

Continued losses with higher corporate G&A and interest expense: FY2024 net loss was $45.6M; drivers included higher corporate costs and interest on the Barrick promissory note (partially offset by lower field spend at Donlin) .
Cash trending lower as expected: Cash and term deposits declined from $112.6M (Q2) to $105.6M (Q3) to $101.2M (Q4/FY-end), reflecting Donlin funding and corporate G&A despite interest income .
Legal overhang persists: While much was upheld, federal litigation requires a remedy process regarding tailings facility risk analysis; state-level litigations (water rights, pipeline ROW, 401 certification) await decisions in 2025 .

Financial Results

Quarterly financials (no revenues; development-stage). Q4 standalone EPS not disclosed; Q4 net loss derived from FY minus 9M.

Metric	Q2 2024	Q3 2024	Q4 2024 (calc)	Notes
Net loss ($USD Millions)	$13.700	$10.743	$10.839 (45.6 FY – 34.761 9M)	FY net loss $45.6M
Loss per share ($)	($0.04)	($0.03)	—	Q4 EPS not disclosed in year-end materials
Total operating expenses ($USD Millions)	$11.593	$7.934	—	Q4 Opex not disclosed in year-end press release
Cash & term deposits (period-end, $USD Millions)	$112.568	$105.572	$101.224	Decline reflects G&A and Donlin funding

Additional KPIs and context:

Share of losses – Donlin Gold ($USD Millions): Q2: $3.990 ; Q3: $2.814 .
FY2024 highlights: loss $45.6M and EPS -$0.14; net annual cash expenditures $24.5M; cash/term deposits $101.2M at Nov 30, 2024 .

Segment breakdown: Not applicable (no production) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total cash expenditures	FY 2024	~$31.2M (maintained across Q1–Q3)	~$31.2M	Maintained
Donlin project funding	FY 2024	~$14.25M	~$14.25M	Maintained
Corporate G&A	FY 2024	~$16.95M	~$16.95M	Maintained
Total expenditures	FY 2025	—	~$37.5M (Donlin ~$21.5M; G&A ~$16.0M)	New
Donlin Board budget (100% basis)	CY 2025	—	$43M; incl. ~$15M drilling; ~$5M cost estimate groundwork	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 FY2024)	Trend
Feasibility/technical work	Q2: Resource model, pilot plant metallurgy; feasibility update seen as next logical step . Q3: Resource model near completion; pilot plant completion expected by year-end .	2024 technical work to feed updated feasibility; 2025 budget includes groundwork to update costs .	Advancing toward feasibility update
Permitting/legal	Q2: Dam Safety prelim packages planned; state/federal cases advancing . Q3: Prelim packages submitted; federal court largely upheld; remedy briefing scheduled .	ADNR comments expected 2025; Dam Safety certification potential in 2026/27; remedy briefing to complete early Feb 2025 .	Progress with defined timelines
2025 work/budget	Q2: 2024 spend ~$31.2M; Donlin Board previously approved 2024 work . Q3: Reiterated ~$31M FY spend; treasury >$100M .	Donlin Board approves $43M (100%); drilling and cost work prioritized .	Upshift in activity
Community engagement/ESG	Q2: Shared Values Statements; SCAC meetings; salmon monitoring planning . Q3: Open house; salmon smolt monitoring; waste backhaul .	Continued ecological/social initiatives; restoration work completed; more planned in 2025 .	Ongoing, sustained
Macro/policy	Q2/Q3: Alaska risk rating strong; supportive jurisdiction narrative .	Management cites favorable U.S. policy posture; views investor appetite as real with diligence on inflation .	Supportive narrative

Management Commentary

“Our treasury remains strong with cash and term deposits totaling $101.2 million as of November 30. Our anticipated expenditures for 2025 are approximately $37.5 million, including $21.5 million for Donlin and $16 million for corporate G&A.” — CFO, Peter Adamek .
“The Donlin Board approved a path forward with a 2025 budget of $43 million… drilling to refine mine planning assumptions… groundwork for a cost update.” — CEO, Greg Lang .
“With most federal and state permits secured we continue to support agencies in maintaining these permits and defending them against legal challenges… Comments [on Dam Safety] are expected in 2025 with the issuance of the certification in 2026 or early 2027.” — CEO, Greg Lang .
On project value leverage: “With today’s gold price nearing the upper end of the chart, Donlin Gold’s value exceeds over $30 billion at a 0% discount rate or approximately $11 billion at a 5% discount rate.” — CEO, Greg Lang .

Q&A Highlights

Capital allocation and market appetite: Management sees real appetite among majors, albeit with more diligence due to inflation; views U.S. policy support for responsible development in Alaska as constructive .
2025 budget detail: ~$15M for drilling and camp operations; ~$5M to lay the foundation to update capital and operating costs; ~$2M for permit defense; continued community relations and holding costs .
Timeline: 2025 work lays the foundation for a future feasibility study; feasibility update expected to take ~18–24 months once initiated; no timeline to initial production provided .

Estimates Context

Wall Street consensus estimates (S&P Global) for quarterly revenue/EPS were unavailable at time of analysis due to data access limits in our S&P Global tool. Given NOVAGOLD’s development-stage status with no production, revenue estimates are not meaningful, and analyst focus tends to center on cash burn, permitting milestones, and project budgets rather than revenue/EPS “beats” [GetEstimates tool error – Daily Request Limit Exceeded].

Key Takeaways for Investors

Balance sheet supports 2025 activity ramp: ~$101M cash/term deposits at FY-end enables ~$37.5M 2025 spend without dilution at current run-rate .
Clear path to feasibility: 2025 budget targets drilling and cost work necessary to progress toward an updated feasibility study, a pivotal stock catalyst .
Permitting/legal de-risking continues: Dam Safety progressing with defined comment/issuance windows; federal litigation largely supportive with remedy process underway—regulatory clarity is a key overhang to watch .
Spend inflects up in 2025: Expect higher cash burn vs 2024 as drilling and cost-estimate work scale—watch for milestone delivery versus plan .
Macro tailwinds: Management highlights supportive jurisdiction and potential policy positives; gold price sensitivity remains a core part of the Donlin value proposition .
No production near term: Value realization driven by milestone cadence (resource/model updates, cost estimates, feasibility decision), not quarterly P&L .

Appendix: Prior Two Quarters – Trend Data

Q2 2024: Net loss $13.700M; EPS -$0.04; total operating expenses $11.593M; cash/term deposits $112.568M; 2024 spend guide ~$31.2M .
Q3 2024: Net loss $10.743M; EPS -$0.03; total operating expenses $7.934M; cash/term deposits $105.572M; reconfirmed 2024 spend guide .

Notes: NOVAGOLD is a development-stage company with no production; segment revenue/margin tables are not applicable. Year-end press release and call emphasize cash, spend, permitting, and 2025 work program .

NOVAGOLD RESOURCES INC (NG)·Q4 2024 Earnings Summary