NOVAGOLD Reports Increased Net Loss and Strategic Developments in Donlin Gold Project

NOVAGOLD Resources Inc. reported a significant increase in net loss for the second quarter and first half of 2025, with losses reaching $54.3 million and $63.4 million, respectively. This marks an increase of $40.6 million and $39.4 million compared to the same periods in 2024. The primary driver of this increase was a non-cash, non-recurring charge of $39.6 million related to warrants issued under a backstop commitment agreement. The company also experienced higher field expenses associated with the Donlin Gold project, lower interest income, and reduced other income due to a smaller gain in the fair market value of marketable securities. However, general and administrative expenses decreased, attributed to lower share-based compensation and professional fees.

In terms of operational developments, NOVAGOLD's investment in the Donlin Gold project, which is a joint venture with Barrick Gold, saw its share of losses increase to $8.8 million for the first half of 2025, up from $7 million in the prior year. The company’s equity loss from Donlin Gold was $6.5 million in the second quarter, compared to $4 million in the same quarter of 2024. The company’s cash and cash equivalents at the end of the reporting period stood at $293.7 million, a significant increase from $52.6 million a year earlier, primarily due to a public equity offering that raised approximately $243.8 million.

Strategically, NOVAGOLD completed a major transaction on June 3, 2025, acquiring an additional 10% interest in the Donlin Gold project, increasing its stake to 60%. This acquisition was funded through a combination of a public equity offering and a private placement, which collectively raised approximately $260.4 million. The company also entered into an amended and restated promissory note with Barrick, allowing for a prepayment option of $100 million on or before December 3, 2026. This transaction is expected to enhance NOVAGOLD's governance and operational control over the Donlin Gold project.

The company’s operational metrics indicate a focus on advancing the Donlin Gold project, with a 15,000-meter drill program initiated to prioritize resource conversion and expansion. As of the end of May 2025, 8,401 meters had been completed. The company is also actively engaging with local communities and stakeholders to reinforce the project's importance and support environmental initiatives in the Yukon-Kuskokwim region.

Looking ahead, NOVAGOLD anticipates that its share of funding for the Donlin Gold project will exceed previous guidance of $21.5 million due to the increased ownership stake. The company plans to provide updated guidance in its third-quarter results. Additionally, NOVAGOLD is focused on completing an updated feasibility study for the Donlin Gold project, with expectations to commence engineering and construction decisions in the future, contingent on securing necessary financing.