NovaGold Q2 CNE Call
NovaGold Q2 CNE Call
EXECUTIVES
Melanie Hennessey – Vice President of Corporate Communications
ANALYSTS
PRESENTATION
Operator-
Good day, ladies and gentlemen and welcome to the NovaGold Second Quarter 2018
Conference Call. At this time all participants are in listen-only mode. Later, we will conduct
a question answer session instructions will follow at that time. If anyone requires
assistance during the conference please press * and zero on your touchtone telephone.
I would now like to turn the conference over to Melanie Hennessey, Vice President of
Corporate Communications. You may begin.
Operator- [Operator Instructions] And our first question comes from the line of Lucas
Pipes from B. Riley. Your line is now open.
Unidentified Analyst-Hey good morning everybody. Ted Beachley, here for Lucas.
Thank you for taking my questions. And Greg and team first I want to say
congratulations on hang of remarks once again this quarter. So my first question is,
after the Record of Decision is complete and optimization project wraps up. How
soon after can we expect the construction decisions for Donlin? Do you have any
rough idea right now?
Greg Lang- No, I think we're you know working with Barrick to conclude the
optimization studies after the Record of Decision is released. And then we'll assess
where the markets are and go from there.
Unidentified Analyst- okay great and then just secondly, how is interest been for
Galore Creek? And do you see it picking up at all in the current copper
environment?
Greg Lang- Interest in our Galore Creek project which were known to be interested
in selling, has picked up in the last year as copper prices have moved higher. So,
we're evaluating that and we'll take it as it comes in the second half of the year.
Unidentified Analyst-Thanks, guys. Greg Lang-Thanks. Good.
Operator-
And our next question comes from the line of John Bridges from JP Morgan. Your line is
now open.
John Bridges- Good morning Greg, everybody. Again congratulations on the
progress. We're looking forward to that Record of Decision. Interesting detail on
the new outlook for the Phase 1 scale of development and third-party
participation, where would you that could be helpful?
Greg Lang- Well, good morning, John. The opportunities we're looking at for third-
party participation. Some of them are pretty standard such as leasing, the mining
equipment or entering into agreement for the oxygen plant. But we're also looking
at maybe it make sense to bringing a partner on the gas pipeline and other aspects
of the infrastructure. Those are the major ones. But there is also opportunities in
the ownership and operation of the ports that will supply the mine. So, all of those
things are being contemplated as we wrap up the optimization work.
John Bridges- I was just wondering. All this with stable funding arrangements for
First Nation's companies that set up to help you with some of the developments?
Greg Lang-John, there are opportunities along those lines that we're looking at and
there has been some interest there.So we'll continue to look at those and all other
opportunities to reduce the upfront capital.
John Bridges- And you've mentioned the gas pipeline. You’ve got the permit now.
How long is that permit open for? Do you have to start building it by any particular
date?
Greg Lang- No, john, most of the permitswhen you think about it we’re requesting
approval for a mine that will have a mine life in decade. So most of the permits are
for the life of mine and don’t really have a sunset. Some of the permits, such as air
quality need to be renewed periodically, generally on a two to three year horizon.
John Bridges- And then there has been some talk about third parties coming in,
maybe too early, but I just wonder. Are there any CAs in place at the moment
without the parties, you might be sort of thinking about coming into join you?
Greg Lang- Nothing that we would comment on John, but thank you.
John Bridges-Okay, understand. Congratulations. Best of luck for second half.
Greg Lang- Thank you, John.
Operator-
And our next question comes from the line of Stephen Walker from RBC Capital Markets.
Your line is now open.
Stephen Walker- Good morning, Greg. Just a couple of follow-up questions on
Galore Creek. Last technical study was published in September of 2011 and I know
Teck has been talking about optimizing the value on some of, it’s assets including
or at least getting recognition for the value in some of its asset and its asset
undeveloped assets including Galore Creek. Is there any plan or other any plans to
update that technical study or provide a broader update given the work that’s been
done over the last several years on the property?
Greg Lang-Stephen, well, thank you for listening in on our call today. We’ve been
very been methodical in our approach to Galore. Certainly, as copper prices have
moved up, we’ve seen -- it’s a much more visible asset with our partner, which we
think is certainly very helpful for what we want to do. But we’re not really planning
on any updated studies in the near-term.
Stephen Walker- And then just as a follow-on presumably two things. Is there a
formal process going on for Galore at this point? And secondly, is there,
presumably Teck has a right of first refusal, should something happen and
somebody look to buy a portion or all of your share in Galore Creek?
Greg Lang-Stephen, there is no formal process underway at this time. But to your
question on the right of first refusal, yes, if we present an offer to Teck, they have
90 days to exercise their right of first refusal and match any offer that we would
present them.
Stephen Walker- Great, thanks very much. That's my all my questions.
Greg Lang- Thank you.
Operator
And at this time, I’m showing no further questions. I would like to turn the call back over
to Greg Lang for any closing remarks.
Operator-
Ladies and gentlemen, thank you for your participation in today’s conference. This does
conclude the program and you may all disconnect. Everyone have a great day.