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 11.5Moz Livengood
39.0Moz12 Donlin Gold
11.7Moz Blackwater
11.3Moz Goldrush
1.7Moz Carlin
2.7Moz Muruntau
1.2Moz Olimpiada
M&I resources
of development-stage gold projects13
2020 annual production of gold operations14
low risk
moderate to high risk
extreme risk no data
large-scale open pit, between two and three grams, it could be one of the lowest-cost producers in the world.
Then you have to take into account the fact that it’s in
the safest part of the world, for which a premium should be attached. Before we entered into the “Go where the gold is” mentality in the early 1990s, particularly led by Newmont’s move into Yanacocha with Buenaventura, gold assets were pretty much valued as follows: U.S. assets were valued using
a 0 percent discount rate because they were considered to be the safe jurisdictions. And if you had exploration potential, all the better. These were arbitraged against the risky jurisdictions: Australia, Canada, and South Africa. That just shows you how far we came because once Newmont went into Peru and then into Uzbekistan – and you had Barrick following suit into Chile and ultimately looking for gold in Russia and Freeport into
Irian Jaya – everything changed. And at a certain point, it came around to the assets in North America being valued lower than in these other jurisdictions because it was assumed that the
constraints on permitting and environmental considerations would mean longer lead times.
So you were getting higher valuations for assets in Africa than you were in North America. When we pivoted away from the developing world into what we called the safe jurisdictions – now what would be known as the Tier-One jurisdictions – at least in my case people couldn’t say, “Well Tom, you’re talking your own book. You’ve taken a stake in NOVAGOLD.” It’s not exactly true. I’d become the largest holder of Moto Goldmines at the same time. And we engineered the sale of Moto to Mark Bristow and Randgold and AngloGold. So we were still willing to take opportunistic bets in the developing world, but we viewed that as being a warrant, as opposed to being a stock. The true stocks were U.S., Canada, Mexico, and Australia. Now, when you look at NOVAGOLD, what you see is this combination of Donlin Gold’s size, grade, exploration potential, production profile, and cost structure. And superimposed upon all that is jurisdictional safety. Alaska is a state that welcomes mining.
JURISDICTIONAL SAFETY11
CHAIRMAN’S INTERVIEW 19
46Moz Sukhoi Log












































































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