NOVAGOLD Reports $15.6 Million Net Loss in Third Quarter, Zero Revenue

NOVAGOLD Resources Inc. reported a net loss of $15.6 million for the third quarter ending August 31, 2025, an increase from a loss of $10.7 million in the same period last year. The company's total revenue remains at zero, as it has not yet commenced production at its primary asset, the Donlin Gold project in Alaska. The increase in net loss is attributed to higher operational expenses, particularly related to the Donlin Gold project, and a significant non-cash charge of $39.6 million associated with warrants issued under a backstop commitment agreement. For the nine months ending August 31, 2025, the net loss rose to $79 million from $34.8 million in the prior year, reflecting increased field expenses and the aforementioned warrant charge.

In terms of financial position, NOVAGOLD's cash and cash equivalents increased to $58.2 million, up from $42.2 million at the end of the previous fiscal year. The company also reported term deposits of $67 million, contributing to total current assets of $126.2 million. The investment in Donlin Gold surged to $214.9 million, reflecting the acquisition of an additional 10% interest in the project for $200 million, completed on June 3, 2025. This acquisition was financed through a combination of a public equity offering and a private placement, which collectively raised approximately $260.4 million.

Operationally, NOVAGOLD has ramped up activities at the Donlin Gold project, including the completion of an 18,454-meter drill program aimed at enhancing geological modeling and supporting resource conversion. The company has also issued a Request for Proposals (RFP) for a Bankable Feasibility Study (BFS), with expectations to award the contract by year-end. The project is now 60% owned by NOVAGOLD, with governance shared equally with its partner, Paulson Advantage Plus Master Ltd. The company anticipates its share of funding for Donlin Gold to increase to $24 million in 2025, reflecting its higher ownership stake.

Looking ahead, NOVAGOLD's management remains focused on advancing the Donlin Gold project while maintaining sufficient liquidity to support ongoing operations. The company has indicated that it may need to raise additional capital to fund future development, including potential project-specific debt and equity financing. The outlook for the Donlin Gold project remains contingent on the successful completion of the BFS and the resolution of ongoing legal challenges related to permitting. The company has expressed confidence in its ability to navigate these challenges and continue its strategic objectives in the gold mining sector.