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Mélanie Hennessey
vice president,
corporate communications
Is building shareholder value strictly limited to the price of the metal?
Mrs. Hennessey: NOVAGOLD’s healthy treasury, combined with Donlin Gold’s quality, scale, and jurisdictional appeal, all play an important part in generating shareholder value, especially in more turbulent markets. Additionally, in a higher gold price environment, we typically outperform the majority of our peers because of the tremendous leverage to gold which Donlin Gold o ers with its size and scale.
By underscoring that our assets are located in some of the very safest geopolitical jurisdictions in the world, industry trends are expected to result in a heightened investor focus on the safety premium that will be attached to the value of the company’s key projects as they advance up the value chain.
Over the last three years NOVAGOLD has had the opportunity to assemble an experienced team of mine builders and operators, focused on advancing our agship asset through permitting, and safeguarding our balance sheet. These achievements, we believe, will be rewarded through superior share price performance.
Why is Alaska regarded as a preferred jurisdiction?
Mrs. Hennessey: Jurisdictional safety is a key ingredient in the valuation of precious metals mines. It’s
a critical factor in decision-making among institutional investors. We have seen too much value destruction on the frontier, and the U.S. is a better environment in which to do business relative to almost anywhere else. Being located in Alaska is signi cant for investors. Alaska has a vibrant mining industry, it’s the second-largest gold-producing state in the U.S., and gold production has increased in recent years. It’s also a state that values its resource sector. We believe that Donlin Gold’s location will continue to enhance the project’s reputation as a rare, investment-grade opportunity.
What other initiatives has the company undertaken in 2014?
Mrs. Hennessey: NOVAGOLD, with the help of Donlin Gold LLC and Galore Creek Mining Company, remains actively engaged in forming partnerships, sponsoring activities at the community level, supporting local youth in leadership endeavors, and visiting communities in the region where the projects are located.
In 2014, the Donlin Gold team visited a total of 40 villages, sh camps, fairs, and associations in the Yukon-Kuskokwim region. The village visits included presenting project updates to the communities in both English and Yup’ik, as well as school visits to speak to students about education, training, future employment opportunities, and overall workforce development needs.
Donlin Gold’s annual visits to sh camps in the Yukon-Kuskokwim region are part of a partnership with the state of Alaska and the Yukon-Kuskokwim Health Corporation in the Kids Don’t Float Campaign, where the Donlin Gold team helps raise safety awareness at the beginning of shing season and distributes personal otation devices.
NOVAGOLD collaborated with Donlin Gold in developing a four-part video series on a way of life in Alaska. The lms tell a story about the people of the Yukon-Kuskokwim region, some of which are featured in this report, their heritage and subsistence way-of-life, and the challenges they face living in a remote community. The videos, released throughout 2015, will be available at www.novagold.com/info.
We believe that a company must earn its social license by establishing a strong and collaborative working relationship with the community where it operates. This social license must be based on a thorough understanding of the language and culture of the people in the region. We strive to create a balanced plan that enhances economic development and preserves the subsistence lifestyle. Both can truly co-exist.
NOVAGOLD’s projects are located in remote areas inhabited by communities largely dependent on subsistence living and traditional lifestyles. The company wholeheartedly respects their heritage and feels it is important to share the di erent aspects of their day-to-day life, speci cally as it relates to the people of the Yukon-Kuskokwim region, where the Donlin Gold project is located.
Although current activities are limited at Galore Creek, we remained active in the community, sponsoring local fundraising events, supporting Tahltan literacy camps, and providing assistance and funding for research on the Tahltan language dictionary.
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