TSX-listed junior miner Novagold Resources (NG) said losses narrowed a fraction last year as it worked towards achieving production at its Donlin Gold project, its 50-50 joint venture with Barrick Gold (GOLD) which is facing a barrage of legal challenges to its construction.
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Losses for its Fiscal year 2024 narrowed slightly to $45.6 million from $46.8 million in the prior year, while the net loss per share remained stable at $0.14 as the miner talked up progress at its Crooked Creek, Alaska project, which after 20 years of exploration and planning is nudging towards construction.
The company said it has a treasury of approximately $101 million in cash and term deposits as of November 30th, 2024. It reported net annual cash expenditures in Fiscal 2024 of $24.5 million, including $12.4 million to fund its share of the Donlin Gold project and $17.7 million in general corporate and administrative costs, which was below its 2024 expenditure guidance of $31.2 million. The budget for 2025 was raised to $43 million.
NG Upbeat on Donlin Prospects But Legal Battles Remain
Donlin Gold is considered a Tier 1 asset with 39 million ounces at a grade of 2.25 grams per tonne, more than double the industry average, with the company expecting to produce one million ounces a year at peak. If built it would be one of the largest open pit gold mines in the world.
The project has secured all necessary federal permits and the majority of state permits, although the company noted some outstanding legal challenges to permits.
In fact in September, a confederacy of six tribes chalked up some measure of success in their battle against the mine’s construction when a U.S. District Court in Alaska ruled key federal agencies responsible for permitting the Donlin project failed to fully consider the potential environmental damage from its building.
Then in November, the Alaska Supreme Court started considering a pair of lawsuits, rejected by lower courts, that could stop the project.
NG also cited cost overruns and inflationary pressures as a negative factor, with the timeline for production commencement still uncertain.
NG is “nearing critical milestones” to advance the Donlin project, said President and CEO Gregory Lang.
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