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spk00: Thank you for standing by. This is the conference operator. Welcome to the NOAA Gold 2023 Year-End Financial Results Conference Call and Webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. Webcast viewers may submit questions through the text box in the lower right corner of the webcast frame. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Melanie Hennessy, Vice President, Corporate Communications. Please go ahead.
spk01: Thank you, Aisha. Good morning, everyone. We are pleased that you have joined us for NOVAgold's 2023 year-end financial results and for an update on the Donald Gold Project. On today's call, we have Novogold's Chairman, Dr. Thomas Caplan, Greg Lang, Novogold's President and CEO, and David Autiwell, Novogold's Vice President and CFO. At the end of the webcast, we will take questions by phone. Additionally, we will respond to questions received by email. I would like to remind you, as stated on slide three, any statements made today may contain forward-looking information, such as projections and goals, which are likely to involve risks detailed in our various EDGAR and CEDAR filings, and forward-looking disclaimers included in this presentation. I will now turn the presentation over to our President and CEO, Greg Lang. Greg?
spk03: Thank you, Melanie, and good morning, everyone. Ahead of providing a summary of our 2023 year-end results, I'd like to start today's call with a brief overview on slide five, which explains why we and our shareholders consider Donlon Gold a tier one asset. Hosting approximately 39 million ounces of gold at an impressive grade of more than twice the industry average at two and a quarter grams and a projected mine life of almost 30 years, Donlon Gold holds the potential to be a significant and cost-effective producer. Furthermore, outstanding exploration potential exists beyond the known resource areas throughout Donlon's extensive land holdings. The project is also located on private land designated for mining in Alaska. world-leading jurisdiction known for responsible mining practices. Our enduring partnerships and life and mind agreements with Chalista and the TKC Corporation further positioned Donlin favorably on its path toward development. It is important to put into context the company's accomplishments since the reorganization in 2012. especially for those who are new investors and less familiar with us. As shown on slide six, we have been focused on executing this strategy that was set in motion by our chairman and me over a decade ago, namely to unlock the value of Novogold's high-quality assets for our shareholders and advance Donlin as a pure gold play offering a unique endowment and maximum leverage. Looking at slide seven, Alaska offers an excellent environment for mining and is one of the world's safest jurisdictions. It ranks as the second largest gold producer in the US with a well-defined permitting process. Numerous companies have achieved success here and the government is very supportive recognizes the importance of responsible natural resource development. NOVAGOLD's performance in the areas of environmental stewardship, health and safety, social and community engagement, and corporate governance are featured on slide eight. The health and safety of our people is our highest priority with over 10 years zero lost time accidents at the project site. The workforce is comprised mostly of local hires. Throughout 2023, we will continue to monitor, reflect on, and refine our environmental, social, and governance performance, including maintaining strong records of environmental health and safety at Donilon and expanding our investments and partnerships with the people of the YK region. To touch on Donland's attributes, as currently envisioned with approximately 39 million ounces, it hosts one of the largest and highest grade undeveloped gold endowments in the world, one that would average over a million ounces a year for 27 years. When looking at the group of gold development projects in the Americas on slide nine, Donland Gold is by far the largest with global gold production continuing to decrease it is clear the industry needs projects of scale, grade, and longevity to ride out multiple price cycles. With a grade of more than twice the industry average for an open pit project at two and a quarter grams as shown on slide 10, this in turn enables Donlin Gold to potentially become one of the lowest cost producers in the gold space. Excellent exploration potential exists beyond the defined resources located in the ECMA and Lewis deposits on the diagram in the upper right-hand corner, which occupies only three kilometers of an eight-kilometer mineralized belt. As highlighted on slide 11, incredible potential remains to increase ounces and extend the mine life. As private landowners, both Chalista and TKC are dedicated to developing Donlon Gold in a way consistent with the elders' vision of responsible mining development while creating jobs and economic benefits for the surrounding communities, as well as protecting the culture. A few quotes are provided from the leaders of both Alaska Native corporations. TKC and Chalista's knowledge and guidance has been critical over the years through permitting, sustainability, and community engagement initiatives. We immensely appreciate their meaningful input regarding their land and the significant economic needs required to sustain healthy living for their communities. Our partners continued time-tested collaboration on the project with the and their full engagement was extremely valuable, ensuring sustainable economic development throughout all phases of the project. With these combination of attributes, the Island Gold has the potential to form a cornerstone of economic sustainable development for the YK region for many decades to come. I will now touch on the highlights accomplished by Donlin Gold last year, as well as some of the ongoing activities. Turning to slide 14, the 2023 field program at Donlin was safely completed on schedule in July, with almost two-thirds of the direct hires coming from the YK region. The program included the completion of comprehensive field work and geotechnical drilling, required for the Alaska Dam Safety Certificates. This involved data collection at numerous locations earmarked for water retention structures and the tailings storage facility. Field work included drilling, water retention structures, seismic surveys, and test plot liner installation. Additional field work included refining groundwater at the site hydrogeologic drilling that provided essential information for mine planning and design. At the historic Placer site, restoration work encompassed significant stream and pond habitat creation. Continued restoration work will include anticipated aquatic life access planned for the 2024 field season. Furthermore, with the support from both owners and third-party consultants, Donlon Gold continued to advance the geologic and resource models, advanced trade-off studies, and conducted extensive analysis on key project assumptions and design components for validation, which will play a critical role in subsequent steps to advance the project further up the value chain. Through ongoing collaboration with Chalista, TKC, and local communities, Nova Gold upholds a steadfast commitment to education, community wellness, cultural preservation, and environmental stewardship. These principles are actively reinforced, not only at the Don and Gold project site, but also in the YK communities, as highlighted on slide 15. In 2023, Donland Gold demonstrated this commitment by appointing additional community liaison representatives from four villages in the YK region, expanding the total to eight. Donland Gold also established three additional shared valued statements, totaling 16, formalizing ongoing engagement and reinforcing long-term relationships with the communities in the region. Donlon also supported various search and rescue teams and provided funding to the Bethel Community Services Foundation and Special Olympics Alaska, just to name a few. We also concluded another successful In It for the Long Haul backhaul program for the sixth year in a row. This vital project is dedicated to the collection, removal, and safe disposal household hazardous and electronic waste from the villages throughout the region, preventing an adverse impact on landfills and waterways. This year's program achieved significant milestones, including the removal of waste from fish camps in the river, and Donlon Gold employees from three villages played a key part in initializing the backhaul from the Yukon River. Furthermore, Donlin is collaborating with its Alaska Native partners on environmental initiatives, which include the monitoring and assessment of the conditions and management of salmon fisheries in the Kuskokwim and Yukon River watersheds. In the fourth quarter of 2023, specific projects opportunities for salmon population health were identified. Additionally, Donlin Gold supported the construction and maintenance 300 miles of ice roads, fostering community engagement and providing essential access for emergency services. Donlan continues to support educational programs with a focus on enhancing opportunities through the Alaska Resource Education and the Alaska School Activities Association and providing scholarships at the University of Alaska. Donlon Gold is a federally permitted project on private land designated by law for mining activities as part of the 1971 Alaska Native Claims Settlement Act. This is a differentiating factor for most other mining assets in Alaska. Permitting in the United States and Alaska represents a significant and rigorous endeavor where success hinges on years of dedicated efforts to ensure a diligent, transparent, and inclusive process for all stakeholders. Slide 16 lists all the federal and state permits and certificates received to date. We have received our federal permits from the Army Corps of Engineers and the Bureau of Land Management in 2018, followed by numerous state permits on this slide in subsequent years. Donlon Gold, its owners and partners possess an intimate understanding of the project's permitting and regulatory procedures and remain committed to supporting the federal and state agencies in defending such a rigorous permitting process. On slide 17, we present updates regarding state and federal permitting and litigation activities. None of these actions are a surprise, and we were prepared and have prevailed in the courts. The 2023 field program was focused on geotechnical and hydrologic drilling to gather supplementary data for the dam safety certificates. The field work concluded in July and the team is on track to submit the preliminary design packages to the state in the first half of 2024. On September 1st, 2023, the Alaska Superior Court reaffirmed the Department of Natural Resources decision on Don and Gold water rights following an unsuccessful appeal. On October 2nd, 2023, Earthjustice appealed the Superior Court decision to the Alaska Supreme Court and filed their opening brief in January. In the federal litigation challenging Donlan Gold's joint record of decision in permits, including the 404 permit, the U.S. Department of Justice is finalizing compilation of the administrative record for the court. The briefing schedule was agreed in the fourth quarter and will extend through the first half of 2024. Despite these numerous challenges, all appeals against the Donlan Gold projects have been unsuccessful to date thereby reinforcing our confidence in the thoroughness of the permitting process, acknowledging the importance of readiness and preparation, along with the unwavering support from Donlon Gold and its owners. We remain committed to backing all agencies in defending the permits. With that, I will now turn the call over to our CFO, David Otterwell, to review the 2023 year-end financial results. Dave?
spk05: Thank you, Greg. Turning to slide 19. For the year, our net loss decreased by $6.5 million from 2022, primarily due to lower field expenses at Dolan Gold and increased interest income, partially offset by an increase in interest expense on the promissory note and higher G&A expenses. Bonding gold expenses were lower in 2023 with field work and geotechnical drilling completed in July for the Alaska Dam Safety Certificate applications and hydrogeologic drilling to support the mine planning and design compared to the large exploration drilling program in 2022. G&A costs increased due to higher corporate travel costs, legal expenses, and additional PSUs granted to the company's executive officers as a retention incentive to June 30th, 2024. Higher interest rates in 2023 impacted both the interest income on cash and term deposits and interest expense on the promissory note. On slide 20, cash and term deposits increased in 2023 by 0.2 million. with corporate, administrative, and our share of Donlon gold expenditures offset by interest income of 5.7 million and the note proceeds received from the Newmont note of 25 million. Compared to the prior year, Donlon gold funding was lower due to the geotechnical and hydrogeologic drilling program compared to the exploration drilling program in 2022. Higher G&A costs resulted from increased travel and legal expenses And the PSU awards that matured in 2023 did not meet the performance criteria. Therefore, no common shares were issued and no withholding taxes were paid in 2023. Our treasury remained strong with cash and term deposits totaling out in 25.7 million at November 30th. And our Anticipated expenditures for 2024 are approximately $31 million, including $14 million for Donlan and $17 for Corporate G&A. Greg, I'll turn it back to you.
spk03: Thank you, Dave.
spk09: Hello, everyone. Hello, everyone. I want to take this as an opportunity to be able to assure everyone our investors that we are as investor friendly, as well as transparent as any company in the mining industry. We have from the very outset since Greg Lang and I became CEO and chairman respectively laid out, not just verbally, but in writing, everything that we would be doing for the years coming in terms of making Novigold a pure play on what we regard as the greatest gold development story in the world, a tier one asset in a tier one jurisdiction. At the same time, we've also been completely straightforward as gold bulls representing a very, very intelligent shareholder base who share our convictions, that we see Nova Gold as a pure play on Donlan as being the best risk-reward story in the gold development space. Now, as you will have heard, we've approved a budget. with our partners at Barrick. There is a difference in terms of our point of view as to some of the steps forward, but we're taking the project up the value chain with them and the conversations are ongoing and we'll see where they go. But they will not be going into a place that we're uncomfortable. Let me review the Novigold thesis because I think it's extremely important for you to understand why, as someone who's been in this story for 15 years and chairman for 12, there is no way, literally no way, that I, on behalf of the shareholders, will allow any opportunity for our share price to be able to reach 13 and a half and higher. We have a unique story. In fact, you've heard it before, but let me just reiterate this. When I ask investors, which asset has the combination of size, which means low opex as a producer, which has 39 million ounces already identified on 5% of the overall land package. In fact, 30% of what's on strike and our drill programs have also hit to depth. We know this is going to be much bigger and candidly, so do some of the major mining companies. There should be no doubt in anyone's mind that if they buy Nova Gold at these prices, they are buying it well below the price that anyone would pay for it, which should give them some comfort. And if in order to impress upon people that these are prices which are the product of... special circumstances that will find resolution. All options are on the table, including stock buybacks, as well as the promotion of the value of these assets in very, very different ways. This is a pledge that I make to you. I've been it for 15 years. I'm happy to be in it for another 15 years. Everything that's happened since I became an investor in this story has only reinforced my view that Donlin is Vada, that Donlin is the new Carlin. And when I make references to these things, I'm making reference to great assets in great places. Nova Gold, as a gold company with the size, the grade, the exploration potential, being a pure play on what has the potential to be a million-ounce producer, among the lowest cost producers with fantastic native corporation partners with whom we enjoy excellent relations and fidelity and solidarity. And most importantly, in today's world, we're in an address where if you go to sleep at night, you know that when you wake up in the morning, you haven't been eaten, literally. or figuratively. You know that there are no insurgents. You know that there are no missile strikes. You know that you're not dealing with kleptocrats, where the rule of law is not a novelty which can be overthrown at will, where private property is enshrined. The second largest gold-producing state in the United States where we enjoy the most wonderful relationship with our native corporation partners who really, really appreciate the stand which we're taking on this story. To us, our treasury is sacred. We don't oppose drilling. I'd love to continue drilling to be able to show my belief that we can increase this resource by a huge amount. But for the time being, our view, and circumstances could change, but our view is our shareholder treasury, which gives us years of runway, is part of our overall profile. And we like it. We haven't needed to raise outside capital since 2012. That's extraordinary. That's because every promise that we ever made in taking us away from being a gold copper company to a pure gold company with the spinoff of Nova Copper, now Trilogy, with the sale of Galore to Newmont, has been affirmed. All of our shareholders know that we have always kept our promises and that we have been transparent to the point of verbosity especially on my part, obviously, because brevity isn't my strong suit, in order to hold fast with them. Well, I will remind them. The owner lives above the store. That's a quotation from one of the most powerful fund managers in the world about his take on the way that I view Donlon. It is a passion project and will be pursued as such. You will not be seeing any absence of earnestness in seeing our share price multiply. In fact, if I have any sense of forecasting at all, I would say that one of the greatest trades in the gold industry will prove to be long Nova Gold and short some others who don't share all of our attributes. And I'm not talking about juniors. I'm talking about majors. Well, let's continue to talk about some of the macros. If we go to slide 24, we're setting up for a perfect storm in gold. And for us, It's very obvious. The way to play it is to be able to give yourself the maximum leverage to the thesis and scrub that thesis, find the right asset that will stay with you and allow you to reap the fruits of that leverage. For us, it's Don Lund. and nothing has changed in our view. To the contrary, when we look at things that are going on in Asia, Africa, South America, we know what we have. We have the most beautiful, we have the most beautiful girl in the world, and she's with us. I don't know, I probably just got canceled, but in any event, As far as gold is concerned, I think that what we're seeing is a slow motion breakout. When gold goes past, and I don't like to talk about specific prices or even timing, but when you look at this chart, I think that it's pretty clear that you have beautiful chart formations from a classic cup and saucer to multiple tops. The question is, are the fundamentals there to take gold to what I believe will be a new equilibrium level of between three and five thousand? And I know that that sounds like a very wide range, but that's because I could see gold in certain circumstances, trading to five, swooning to three, going back to five. And the truth is, there's no reason for me to make higher forecasts than that. But gold could go much, much higher than that. This is just on supply-demand fundamentals that I make the forecast that I do. But I believe that in as much as patriotism is the last refuge of the scoundrel, Fear factors are the last refuge for the gold bull. They're not necessary. The supply pressures. Donland is twice the average grade of the mines that are being proposed to the extent that there are any major mines. Production costs we've seen rising. The exploration budgets are completely inadequate. The discovery rates are probably at an all-time low. I love drilling. I'm always drilling. And the fact is that I'm in a very, very small minority, which has never fazed me. I made 100 times my money on drilling in silver, 100 times on PGMs, 100 times on hydrocarbons. I would match our track record with all but a few other not just smart, but also very, very lucky people. And we acknowledge luck in the same way as we acknowledge the luck that had Novigold falling into our laps when we came in and rescued it. stock went from 3 to 15, you will see it happen again, if not much, much higher. And I will do everything within my power to make that forecast come true. Now, the reality is, if you go to slide 25, I'm not going to blame our performance on the fact that gold equities have greatly underperformed gold itself. That's not uncommon in commodities because you often see that the physical demand increases from certain levels. And when you get the investor sentiment, it then flows into the equities that are correlated to those commodities or currencies in the case of gold. The thing that has changed is that when I got into the business 30 years ago, the value of all the precious metal shares in the world were about the value of Coca-Cola. And now the value of all the precious metal shares in the world is a fraction of many, many, many technology companies. So the question is, Will technology come down to earth in some sense? And I don't mean that in terms of will technology stocks fall. I mean that in the sense that what is the status of gold in the world? Well, for me, the fact that the central banks have remained huge buyers, as you can see on slide 26, tells me that gold has legs. Central banks are not stupid money. They may be forced by their governments to do stupid things, lest the global economy fall apart, but they know what they have on their balance sheets. And they are voting with their feet, with gold. I want to be on their side of the table. The path of least resistance for a central bank bureaucrat is to go with the trend. So when you have the Chinese and the Indians competing over who's going to be the largest consumer, when you have central banks as buyers, it's very, very clear that the trend is our friend. At some point, you will see a catalyst that will have a big impact on the equities. And it will be impossible to get into them at the levels that you're seeing now. It will be as one wit put it years ago, like getting Hoover Dam through a garden hose, because there are a lot of funds that can really only buy equities and the solid performance that they will show will attract more and more money. Just the fact that financial assets are amongst the only assets that people want to buy much, much more of as they get dear. The equities market in the golden platinum and silver space is highly undervalued. And as you've heard, our view is that the place to be is in fabulous assets, tier one assets in tier one jurisdictions. You've got to have both. In fact, when we see what's happened in Europe, when we see what's going on in the Middle East and Asia and South America, the reality is that geopolitics trumps geology. And I love geologists. But if you're not in a place where the rule of law is not sacred, my worst fear for those who are is that ironically they will be right on gold. And by being right on gold, when gold is reviewed as a strategic asset, like we are seeing happen with lithium, those assets will be the object of avaricious local governments, for want of a better word. And as you know, I made my bones in Bolivia, Zimbabwe, South Africa. I sold Kibali to Barak. I'm not squeamish. I was the largest holder of mineral rights in Pakistan, focused on Balochistan, a country that I'd studied 35 years ago when I was doing my doctorate on counterinsurgency. Still studying it. I know these places. And I really do believe that for me, As someone who voted with his feet, the best place to be is the United States, Canada, Mexico, so long as it stays part of NAFTA, Australia. That's where you want to be. I mean, and there are a few other, you know, odds and ends in Europe, et cetera, but you want to be in places where you can sleep. And the reason for that is if you can sleep well, you can hold on for when the reversal comes. And if past is prologue, in my experience, it's when you least expect it and the stock doubles, triples, and then people start to cotton on. And that's where you make your 10-bagger. When the fundamentals catch up with the asset quality and the safety of jurisdiction in the hands of a management team that, in our case, were instrumental in building Cortez in Nevada. Richard Williams... brought Pueblo Viejo into production in the Dominican Republic, just in time for them to change the rules, of course. But it's still not just mine, but one that's being expanded by our co-owner in Donlon, Barrett. Our expertise in the Americas, truthfully, is second to none. They could run a larger company. Gold company. Moving to slide 27, I think I covered this, but this is a very, very sad chart for the industry. Good for us, sad for the industry. Gold reserves have been falling. It's possible that we can see reserves that may have been uneconomic now start to come back in. but that implies higher gold prices. So that's a win-win if that happens. One thing that is not happening is that grade has plunged. If you look at that chart on the right, what you'll see is Donlin is where the industry was in 2004, 5, 6, 20 years hence, the industry is going towards a gram, if not lower. Some of the best drill results that were developed in the gold space over the last two drill programs, which, according to Barak, de-risked the geology. We think it was always de-risked, but so what. A happy partner is a good thing. We delivered some of the best drill results in the entire industry. You heard them from us, at least. And we're very, very comfortable with the fact that we have the best asset. Now, something else that I want to mention. I'm not going to predict a recession. I'm not an economist, which probably means I'd have a better chance of predicting a recession. But I know... global risks very well. There are a lot of things I don't know. 99% of things I don't know. And candidly, business use is the least interesting of my activities unless it's related to gold. But I can tell you something. Recession can come from many places. You could have a financial crisis in China. For argument's sake, you could have a 1929 in China, which could have a knock-on effect on the rest of the world in the way that the financial crisis in 1929 in the United States had a knock-on effect all over the world and led to global conflict. Let's put it like this. We already have an unprecedented conflict in Europe. We have unprecedented actions in the Middle East that are beyond barbaric in terms of what was carried out on October 7th and is a game changer in many ways. I won't go into that here. But I have given some interviews on that subject over the last couple of months. But one of the things that people must take into account is that there is a chance for recession. And if there is, the rush to exits is going to be absolutely unprecedented, because the world hasn't had a real recession in this state of indebtedness. And it may very well come from financial reasons, or it could come from a combination of geopolitics and finance. I'm not going to proffer any more specific instances, except in perhaps private conversations. Suffice it to say, you want to have gold in your portfolio. I own it because I love the supply-demand equation. I love the fact that the gold industry is hyper-challenged and that that is, for my lifespan as an investor, irreversible. So I like it for a lot of positive reasons. But my background is as a historian, counterinsurgency, military history, and the world has never been this dangerous since the end of the Second World War. So when I look to own something, whether it's gold or my conviction that gold will lead and other factors will lead to Novigold multiplying because it's got everything I want in a place where I want it to be. It comes from a place of massive, massive conviction. And as all of our shareholders know about Greg and myself, the whole management team, we don't just talk the talk. We walk the walk. Watch this space. It's going to get really interesting. The most important thing for our investors, as you can see on slide 29, is we have enormous leverage to gold. And that is something that we have to reiterate. But again, it's leverage in a place where you can keep the fruits of the leverage. And there are many places that if gold does what I think it's going to do, they're not going to let you keep it. We are seeing it with lithium. We're seeing it in some places with copper. We will see it in gold, not in NAFTA, not worried about that. All of what I've expounded is very, very well known to our large shareholders. They've heard me say it publicly to all of you. Everyone knows that if they want to speak to me about any subject, they can. And I have no lack for words. But I would also like to take the opportunity to thank our shareholders for being not only stalwart and faithful, their solidarity and no pun intended, fidelity is enormously appreciated. I've heard people scold their shareholders in the gold space for short-termism. I've never encountered that. I mean, people trade and that's fine. But the most faithful shareholders and co-investors and partners that I've ever had, whether they are our sovereign wealth fund partners, whether they are institutional investors and families, the most faithful are the precious metals investors. And I would go into battle for all of these shareholders, indeed, any one of these shareholders. And so, as I said, watch this space. It's going to be a very, very interesting opportunity for us to be able to put a spotlight on an asset that is not just in its size, grade, exploration, potential, production, profile, and jurisdiction unique, but one that is wildly undervalued. And with that, I thank you, and obviously we welcome any questions that you may have.
spk02: Ayesha, can you prompt the group for those that have questions?
spk00: Thank you. To join the question queue, you may press star, then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then 1. Star, then 2. The first question comes from Lucas Pipes with B Reilly Securities. Please go ahead.
spk06: Thank you very much, operator. Good morning, everyone. Tom, you mentioned that there are some differences. I couldn't write down the exact wording you used between you and your joint venture partner, and I wondered if you could maybe elaborate elaborate on that and kind of where you see the shared common goals and where there may be some temporary differences at this time. Thank you so much.
spk09: Well, I'll let Greg speak to the shared common goals because they are technical aspects that both of us are committed to in taking Nova Gold up the value chain, which is their terminology as well as ours. As we put in the press release and as we've said, we've been making representations together as partners for two years to the market. and to the native corporations, that when the drilling's over, we go to feasibility. And that is what we are going to stick with. Because our strategy, which has been articulated, is that we're not in a rush to go into production until the economics justify it. And that day will surely come. And I have no doubt that Donlon, which is a generational mine, will be running for many, many, many decades. I have no doubt about that. And I have a sense that our co-owner feels likewise. What I would say is this. We've made what we consider to be commitments. The only constraint is the fact that we have a partner. Our partner wants to continue drilling. The geology, according to our partner, has been de-risked, satisfied with the ore body. The drilling is in order to mine plan. Our attitude is we can do that in parallel with the feasibility study. And that's where we are. It's really that simple. Our management team, Greg, who was the president of Barrick Gold North America for eight years before joining us, because he felt that Donlan was the best development asset within Barrick. Richard Williams, who, as I mentioned, was project on the Pueblo Viejo project for Barrick and Goldcorp at the time, now Newmont. When he finished that project, he joined with Greg in Novigold because he was asked by an analyst for one of our largest shareholders, why'd you leave? And he said, because after having built Pueblo Viejo, I want to now build the greatest gold mine in the world. And that's at Donlon. And both of them, their attitude is this gives us leverage to the greatest asset in the Barrick portfolio. And candidly, I think it's the case. And if you look at what Donland brings to Barrick's reserve base either their 50% share or all of it you can see that they're not dumb you know they can stick with wanting to drill and we don't have to our budget is settled You know, we're not in conflict. We know what we want. We believe that what we want is what has been promised and what is best for everyone. Native corporations, our shareholders and candidly barrack shareholders, unless their agenda is different from ours. Our strategy has always been very simple. No wine before it's time. We've articulated it. We've written it. Our strategy is get the feasibility study done so that when the economics line up, we're in a position to be able to put together the financing that will enable Donlan to go into production. That's what we want. Our native corporation partners have been unbelievably patient. But this is a game changer. for the entire region. And the social license that we enjoy is candidly more valuable to us than the medal itself. Equally, our shares are more valuable to us than the medal itself, which is why we will take all measures necessary to improve the share price performance. So it's an impasse that can just simply be shrugged off for the time being. Both parties can come to terms. They know what we want. We know what they want. If we don't budge, there's no drilling. If they don't budge, there's no feasibility for the time being. But at the end of the day, like I said, I've been in this for 15 years. I suffer from the opposite of deal fatigue. I am more excited. And this isn't bravado. I am more excited about Donlon than I've ever been. When I see what's going on in the world, I have no doubt that our mantra in leverage in a place where you can keep the fruits of the leverage is best expressed via gold development stocks, and great ones with great assets in safe places. And I have a feeling that people are cottoning on to that in not just one, but major mining companies. We're clearly undervalued relative to what the share price can do. And as I said, I think long Nova gold and short some others will be the best trade in the gold space. But Greg, could you answer perhaps You know, some of the things for which, you know, I don't have a natural aptitude.
spk03: Sure. Well, Lucas, you know, for next year, we've approved a budget of well over $28 million, which is still a substantial budget for Donovan. And this will advance our resource modeling, mine planning work. We've got a pilot plant underway that's actually a fairly expensive undertaking. We're doing some regional inbounding. infrastructure support planning, hydrology, and just related activities, as well as our ongoing defensive permits and our extensive community relations programs. There's two areas of the budget that we're still actively discussing with our partner. One is to finalize the scope of work for the update to the capital and operating cost estimate. And the other has been mentioned is to debate the merits of a drill program and improve it if appropriate. And, you know, we're very mindful of our treasury, but I think, you know, it's a 50-50 partnership, but I'm confident that we can work our way through these things. Thank you.
spk07: Tom and Greg, thank you very much for the additional color. And I wish you and the entire team the best of luck. Thank you.
spk09: Thank you, Lucas. Keep the faith. Keep the faith. We're going to astonish you.
spk00: The next question comes from Don DeMarco with National Bank Financial. Please go ahead.
spk08: Thank you, Operator, and good morning, Thomas and Greg. First question is, Greg, I heard you talk about the size of the mineralization, this impressive strike of 8 kilometers over which the current resource only covers just a little more than three kilometers. To what extent have you tested the balance of that eight-kilometer mineralized trend?
spk03: Well, we've got ore-grade intercepts really all up and down the trend, and we'll follow up as appropriate. And there's a slide, and we can locate one of the older slides on our webpage for you that shows where the potential is a long strike. But I think the potential in the near term is really what we see at depth, primarily in the Lewis deposit. You know, some of our drilling from two seasons ago encountered great grades of mineralization well below the bottom of the known pits. So I think the best potential is in the near term is expand the existing pits and then move out along strike and other areas of the claim block.
spk08: Okay, thank you. And so if you were to drill and increase your resource endowment at depth or long strike by a measurable amount, would the incremental ounces simply be added to the end of a mine life, or could this change the development approach as you see it now?
spk03: Well, it's probably a little too soon to answer that question. I mean, it could do both. It could increase the – certainly it will extend the mine life, and then at some stage the owners would – discuss the merits of building a larger facility. So I think we've just got to get our arms around and quantify the potential and then address the issue raised.
spk08: Thank you. And this is a final question then. Do you have a process for reaching consensus or settling any strategic differences of opinion with your partner?
spk03: You know, we maintain an ongoing dialogue and You know, it's a 50-50 partnership, but a bit like a marriage. It's a little give and take, and we've always been successful in the past, and I think we will get there again this year.
spk08: Okay, that's great. Well, thanks so much, and good luck in 2024. Appreciate it.
spk03: Thank you.
spk01: We have two questions from the webcast. Some of them have been answered. Maybe, Greg, if you could speak to the NG trading below the NAV and if that's a worry on CapEx or future dilution, that would be great.
spk03: Well, I'll start with that question and probably lateral it to Tom. I mean, we're all disappointed today when the share price underperforms, especially for no apparent reason, but, uh, you know, our share price really doesn't, uh, you know, we've got, we've got a strong treasury. We've got a pretty solid work plan ahead of us this year. And the share price really is, uh, not directly connected to our, uh, the future capital of the Donovan project. Tom, anything you'd want to add to that?
spk09: Sure. Um, I'm not worried about dilution. We have a strong treasury. You have a management team which has evidenced with our red lines that we're only going to spend capital that we believe is being properly spent. By the way, as to the previous question, Um, I've wanted to drill the entire district for 15 years. Um, I do not believe that Barrick, um, had that, uh, same sense of interest, um, from the time that you have to remember, uh, they launched a hostile takeover in 2006, a couple of years before we became a shareholder. And, um, Barak's intention was to put 10 drill rigs on the project. And although this is a forward-looking statement of some sort, I'm sure, so please disregard it. I genuinely believe that there's 100 million ounces there, a long strike to depth and with other targets. And even my friends at Barak will acknowledge that I've made my 100 Xs through the drill bit, silver, platinum, those were all exploration. Energy, complete grassroots exploration. I surround myself with great geologists and the geologist who's made some of my biggest discoveries for our team sees 100 million ounces at Donlon and he's always been right when it comes to these things and he's a brand name in the geology industry. So I would love to drill more. I just want to make sure that, and the board wants to make sure, we're united on this, so you understand. We're completely united on you drill when it adds value. The ore body is, the ore body as it exists today is what it is. And we think it's fantastic. We don't need to squander our social license perhaps in combination with moving to feasibility and Barrick talking about the asset the way we do, sure, we're open. This isn't personal. This is strictly business. And as Greg said, he's in constant contact with Barrick on multiple levels. It's not hostile. But, you know, we have to keep faith with who we are. What credibility do I have when I say I'm going to do everything within my power to preserve the company's profile, raise its share price, husband its treasury, which gives us years. And by the way, the challenge that we have is that it's not about dilution. It's not about any of that stuff. The challenge that we have is that we're so undervalued relative to what the real value is in the market that someone could get the wrong idea and think that they can get hold of us. 50% or 100% ownership, whatever it is, of Donlon is accretive to every mining company in the world at this point. accretive on every metric reserves, grade production profile, not to mention that if I'm right, that Hoover dam through a garden hose metaphor will be in, um, North American assets. Firstly, they won't be in Africa. They won't be in funky places. I don't believe so. Um, and I voted with my feet by moving from those places back home where, uh, I don't feel that I'm going to experience that great Woody Allen quote, I'm not afraid of dying, I just don't want to be there when it happens. I love what we have. And the key to being a successful investor, in my view, is having so much conviction that you're willing to stay in it until the world comes around to it. I think that could very, very well happen in the nearer term than possible. people imagine for a variety of reasons, company specific as well as in the market. But, you know, that and, you know, a cappuccino, you know, the price of a cappuccino, you know, that's it. That's all you need. But what I would say is that we are more at peril of being an unwanted takeover target. I believe it would be foolish, but we would be more of a target of that than of running out of money. Does that answer your question?
spk01: Thank you, Tom. I appreciate the response to the webcast question. Greg, is the litigation worrisome to you? Can you speak to some of the engagement efforts and steps that have been taken with the state and federal agencies?
spk03: Sure. You know, I've worked in the mining industry for many decades in North America, and litigation wasn't always this way, but probably for the last 15 years or so, litigation is a normal part of the permitting process. We're basically a litigious society, and while we don't really like it, but we know it's coming. We prepared for it. We've had great counsel on board. And we anticipated this even before we got our record of decision in 2018. And we've prevailed. There's four major pieces of litigation. As it works its way through the courts, we've prevailed on every ruling to date. Do I have any fear about that going forward? No, I think we will continue to prevail. And I'm sure a lot of people are curious what it costs to defend your permits. And frankly, it's a pretty significant amount of money in our budget to actively defend the permits that we got through a very disciplined process. So I'm not worried about it. It's a cost of doing business and we will prevail.
spk01: Great. Thank you. That is all the questions we have today. Greg, if you want to say some final remarks.
spk03: Well, everyone, thank you for joining our call today. We've got a pretty active year ahead of us and we will keep everyone appraised as our work unfolds and any potential additions to the approved budget at Donovan. Thank you for your time.
spk00: This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
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