NOVAGOLD Reports Increased Net Loss of $94.7 Million for Fiscal Year Ending November 30, 2025

NOVAGOLD Resources Inc. reported a significant increase in net loss for the fiscal year ending November 30, 2025, amounting to $94.7 million, compared to a loss of $45.6 million in the previous year. This increase was primarily driven by a non-cash charge of $39.6 million related to warrants issued under a backstop commitment agreement, alongside higher operational expenses associated with the Donlin Gold project. The company's total operating expenses rose to $47.3 million, reflecting increased site activity and a 10% increase in its share of Donlin Gold expenditures following the acquisition of an additional 10% interest in the project.

In June 2025, NOVAGOLD completed a $1 billion acquisition of Barrick Gold's 50% interest in the Donlin Gold project, raising its economic stake to 60%. This transaction was financed through a combination of a public equity offering, which generated approximately $195.2 million, and a private placement. The company also issued 25.5 million warrants as part of a backstop agreement to secure funding for the acquisition. The Donlin Gold project, which is expected to be one of the largest gold mines in the U.S., is currently in the feasibility study phase, with a budget of $131.4 million for fiscal 2026.

As of November 30, 2025, NOVAGOLD's cash and cash equivalents totaled approximately $110.1 million, providing sufficient liquidity to cover anticipated costs for the Donlin Gold project and corporate expenses for at least the next twelve months. The company plans to raise additional capital to support ongoing development activities, including the Bankable Feasibility Study (BFS) and construction costs, which are estimated at $9.2 billion. The BFS is expected to be completed in 2026, with the selection of a prime contractor anticipated in the first quarter of that year.

The Donlin Gold project has shown promising mineral resource estimates, with proven and probable reserves totaling approximately 32.8 million ounces of gold. The project is subject to a rigorous permitting process, and NOVAGOLD has engaged in extensive community outreach to maintain strong relationships with local stakeholders. The company has also committed to various environmental and social initiatives, including habitat restoration and community wellness programs, as part of its operational strategy.

Looking ahead, NOVAGOLD's management remains focused on advancing the Donlin Gold project while navigating the complexities of regulatory approvals and market conditions. The company acknowledges the inherent risks associated with mining operations, including fluctuating gold prices and potential opposition from local communities. Despite these challenges, NOVAGOLD aims to position itself for future growth and profitability as it progresses toward the development of the Donlin Gold project.