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Donlin Gold’s upside value with higher gold prices.
Net Present Value (NPV) (US$ in billions)
$2,500 $2,000 $1,700 $1,500 $1,300 $1,200
NPV at 0%
11.6B 8.2B
6.2B
NPV at 5%
19.2B 14.6B
$15.0 $20.0 $25.0
27.0B
$5.0
$10.0
$30.0
Donlin Gold estimates as per the second updated feasibility study effective November 18, 2011, as amended January 20, 2012. All dollar figures are in USD, represent 100% of the project of which NOVAGOLD’s share is 50%, and reflect after-tax net present value (at a 0% and 5% discount rates) of the Donlin Gold project using the feasibility study reference date of 1/1/2014 (start of Year -05) as the first year of discounting. Estimated project development costs of approximately $172M to be spent prior to the reference date are treated as sunk costs. At a 5% discount rate, the net present value is: $547M @ $1,200 gold; $1,465M @ $1,300 gold; $3,147M @ $1,500 gold; $4,581M @ $1,700 gold; $6,722M @ $2,000 gold; and $10,243M @ $2,500 gold. The project requires a gold price of approximately $902 per ounce to break even on a cash flow basis.
Chairman of the Board
29
President & CEO
39
Executive Vice President & General Counsel
30
Vice President & Chief Financial Officer
30
Vice President, Corporate Communications
24
Vice President, Environment, Health, Safety & Sustainability
33
Vice President, Engineering & Development
34
Extensive experience in building and operating large-scale gold assets.
219
YEARS
10
Kongiganak is a coastal village situated on the Kuskokwim Bay, west of the mouth of the Kuskokwim River.
Gold Price US$/oz