NOVAGOLD (NG) Q2 2026: Increased Expenditures Lead to Loss — Cautiously Optimistic

In the second quarter of 2026, NOVAGOLD reported a net loss of ($25.5) million, or ($0.06) per share, reflecting a significant increase in operational cash expenditures. This marks a notable increase in expenditures of $4.8 million compared to the same quarter last year, primarily driven by ongoing activities related to the Donlin Gold project.

Key Financial Metrics:

• Net Loss: ($25.5) million
• Earnings Per Share (EPS): ($0.06)
• Operational Cash Expenditures: $22.7 million
  • Donlin Gold Project Funding: $16.3 million
  • Corporate General and Administrative Costs: $6.4 million
• Cash and Term Deposits: Approximately $370.2 million as of May 31, 2026

This quarter's results reflect a strategic investment in the Donlin Gold project, which is currently undergoing a Bankable Feasibility Study (BFS) update. While the increased expenditures have resulted in a loss, they are essential for advancing the project towards its next development milestones.

Analyst View:

For shareholders, this quarter may be viewed as disappointing due to the reported loss. However, the increase in expenditures is a necessary step in advancing the Donlin Gold project, which is positioned as one of the largest and highest-grade undeveloped gold assets globally. The project hosts approximately 40 million ounces of Measured and Indicated Mineral Resources, with a grade of 2.22 grams per tonne, more than double the global industry average of 1.04 grams per tonne.

Operational Highlights:

• BFS Progress: The integration of major work packages and technical workstreams is advancing under the leadership of Fluor Corporation, with significant contributions from WSP USA, Worley Alaska, and Hatch.
• Community Engagement: NOVAGOLD continues to strengthen relationships with local communities and stakeholders, which is crucial for the project's long-term success.
• Regulatory Status: All permits and approvals remain in effect while legal challenges are addressed, with a pending decision from the Alaska Supreme Court regarding the Clean Water Act certification.

Future Outlook:

Looking ahead, investors should monitor the progress of the BFS, targeted for completion in 2027, and the company's ability to maintain its strong financial position with approximately $370.2 million in cash and term deposits. Additionally, NOVAGOLD's anticipated operating expenditures for fiscal year 2026 remain unchanged at approximately $98.5 million, which includes $78.8 million for the Donlin Gold project.

Key Catalysts to Watch:

• Completion of the Bankable Feasibility Study in 2027
• Ongoing community engagement and stakeholder support
• Updates on regulatory approvals and legal challenges
• Potential capital raises to support future activities

In summary, while the current quarter reflects a loss due to increased expenditures, the strategic investments in the Donlin Gold project position NOVAGOLD for potential long-term growth and value creation. Shareholders should remain cautiously optimistic as the company advances through its development milestones.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Note: Amounts in thousands of U.S. dollars

For the Period Ended May 31, 2026
Revenue: $0
Operating expenses: (22,708)
Other income: 127
Net income (loss): (25,581)
Basic and diluted income (loss) per share: (0.06)

CONDENSED CONSOLIDATED BALANCE SHEETS

Note: Amounts in thousands of U.S. dollars

As of May 31, 2026	As of February 28, 2026	As of November 30, 2025
Cash and term deposits: 370,216	392,493	115,143
Total assets: 598,744	619,434	335,913
Total liabilities: 177,727	175,192	172,119

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