NOVAGOLD Culminates Successful 2015 with Filing of Donlin Gold Draft EIS
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 27, 2016) - NOVAGOLD RESOURCES INC. (TSX:NG)(NYSE MKT:NG) today released its year-end financial results and project update for its flagship 50%-owned Donlin Gold project in Alaska and its 50%-owned Galore Creek project in British Columbia.
Details of the Company's financial results for the year ended November 30, 2015 are presented in the consolidated financial statements and in the annual report filed on Form 10-K with the SEC that will be available on the Company's website at www.novagold.com, on SEDAR at www.sedar.com, and on EDGAR at www.sec.gov. All amounts are in U.S. dollars unless otherwise stated and all resource and reserve estimates are shown on a 100% project basis.
In 2015, NOVAGOLD achieved the following:
- Reached a major milestone in permitting Donlin Gold: < >The Corps published the Donlin Gold draft EIS, initiating a five-month public comment periodAdvanced multiple major permits - Section 404, integrated waste and water management permits, reclamation permitReceived State comments on the air quality permit application with targeted permit issuance in 2017Advanced Galore Creek project design: < >Continued optimization of the integrated mining, waste rock and water management conceptsAwarded generalized tunneling practice study to assess access and material handling; phase 1 is already underwayContinued in depth engagement with local communities through outreach in Alaska and British Columbia: < >Completed over 30 village visits in the Yukon-Kuskokwim regionReleased 4-part Alaska Video Series featuring the vibrant yet harsh realities of life in the remote communitiesFunded youth initiatives, delivered safety messages & equipment, donated books and sponsored internshipsParticipated and volunteered in numerous state-wide and local events, including a children's literacy camp in Northern British ColumbiaMaintained strong financial position: < >Total spending for our operations and investments in Donlin Gold and Galore Creek was 21% lower than plannedNOVAGOLD ended the year with $127 million in cash and term deposits, sufficient to complete permitting of Donlin Gold, fund activities at Galore Creek and fulfill other current obligationsin thousands of U.S. dollars, except for per share amountsYear ended
$General and administrative expense19,88722,046Share of losses - Donlin Gold11,01613,985Share of losses - Galore Creek3921,941Evaluation366-Depreciation3536Total operating expenses31,69638,008Loss from operations(31,696)(38,008)Other income (expense)(103)(2,213)Income (loss) for the period(31,952)(40,484)Income (loss) per share, basic and diluted(0.10)(0.13)Cash and term deposits126,731165,325Total assets433,584524,546Total liabilities104,288119,430
Liquidity and Capital Resources
During 2015, cash and cash equivalents decreased by $28.6 million and term deposits decreased by $10.0 million. The total decrease in cash and term deposits of $38.6 million was primarily related to the $15.8 million repayment of the remaining convertible notes, $11.4 million used in operating activities for administrative costs and interest payments and $11.0 million to fund our share of the Donlin Gold and Galore Creek projects.
In 2016, we expect to spend approximately $25 million, including $9 million to fund our share of expenditures at the Donlin Gold project, $1 million at the Galore Creek project, $1 million for our share of joint Donlin Gold studies with Barrick, $12 million for general and administrative costs and $2 million for working capital and other corporate purposes.
Looking at the year ahead, NOVAGOLD will continue to focus on five key areas: to advance the Donlin Gold project toward a construction/production decision; advance Galore Creek mine planning and project design; maintain a healthy balance sheet; maintain an effective corporate social responsibility program; and evaluate opportunities to monetize the value of Galore Creek.
Conference Call & Webcast Details
The conference call and webcast to discuss these results will take place January 28, 2016 at 8:00 am PT (11:00 am ET). The webcast and conference call-in details are provided below.
Webcast: www.novagold.com North American callers: 1-866-426-5215 International callers: 1-704-908-0398 Conference ID: 21642231
The webcast will be archived on NOVAGOLD's website for one year. For a transcript of the call please email email@example.com.