NovaGold Resources CEO Hosts Annual Shareholder Meeting (Transcript)

May.29.13 | About: NovaGold Resources, (NG)

NovaGold Resources Inc. (NYSEMKT:NG)

Annual Shareholder Meeting Call

May 29, 2013 06:00 PM ET

Executives

Gregory Lang - President and CEO

Thomas Kaplan - Chairman

Analysts

Gregory Lang

Good afternoon everyone. Thank you for attending the annual and special meeting of the shareholders of NovaGold Resources Inc. We thank all of our shareholders, partners, associates, and employees who are here today. As part of the agenda I will begin taking us through the official business portion of today’s meeting followed by an overview of NovaGold’s 2012 results and the outlook for this year. Dr. Thomas Kaplan, our chairman will make a few closing remarks and we will then proceed to the questions period.

As a reminder today’s conference is being recorded for replay purposes. Until the question and answer mode, all participants are in a listen-only mode. Should anyone need a copy of the proxy or the management information circular, we will have additional copies available at the registration disk. If any NovaGold shareholder as at the record date of April 16, has not yet registered with Computershare, you may do so at the registration desk.

I would like to take this opportunity to introduce our directors. If you could identify yourself as your name is called; Sharon Dowdall, Marc Faber, Thomas Kaplan, myself Gregory Lang, Gillyeard Leathley, Igor Lavental, Gerry McConnell, Clynton Nauman, Rick Van Nieuwenhuyse, Anthony Walsh. Many thanks to our directors for taking time out of their busy schedules to be with us today. The meeting will now come to order.

Pursuant to the articles of corporation, I, Chief Executive Officer will act as Chairman. David Deisley, Executive Vice President and General Counsel of NovaGold will act as Secretary. With the consent of meeting June Glover of Computershare Investor Services will serve as scrutineer.

The notice of this meeting of the shareholders was mailed by the Corporation's transfer agent, Computershare Information Services to all shareholders of record as of April 16, 2013. The declaration of Computershare as to the mailing is available for inspection by any shareholder. The secretary will append the declaration as a schedule to the minutes of this meeting.

As the scrutineer has completed the tabulation of the shareholders present or represented by proxy, I note that over 80% of the shares have been voted which constitutes a quorum. Quorum for the meeting and the shareholders as two shareholders presently at the meeting and entitled to vote and holding or representing by proxy not less than 10% of the issued shares of the corporation entitled to vote at this meeting. The report of this scrutineer indicates a quorum is present and notice has been given in the proper manner. I declare this meeting regularly and duly called and constituted for the transaction of business.

There are six formal items of business before the meeting today; to verify the minutes of 2012 annual and special meeting of shareholders, to receive the Annual Report of the directors containing consolidated financial information for the corporation, to elect directors for the coming year, to appoint the Corporation’s auditors for the forthcoming year, to consider and if deemed appropriate, approve the entering into of amending agreements to permit the release of certain escrow founders shares, to consider and if deemed appropriate approve the continuance of the corporation under the Business Corporations Act of British Columbia from the Act which we are now under in Nova Scotia and adoption of articles compliant with the BCA upon continuance. The minutes of the annual meeting of shareholders held May 29, 2012 are available for perusal by any shareholder.

The chair will entertain a motion to take the minutes as read and verified. Do I have a second? Thank you. So any discussions on the motion? All in favor, please signify so. Thank you, the motion carries.

We will now present the Annual Report of the directors containing the consolidated financial statements of NovaGold for the year ended November 31, 2012 together with the Auditor's Report therein. A copy of the annual financial statements was mailed to each shareholder of record who did not specifically opt out of this mailing. There are extra copies available for anyone who wishes one.

The chair will entertain any questions on the financial statements of the corporation. There are no questions, we will move onto the next item of business. Next item of business is the election of directors. The Board of Directors have determined that the business of the corporation can properly be conducted by the Board of Directors consisting of 11 directors. The following 11 individuals are proposed as nominees to the Board of Directors as set out in the management information circular: Sharon Dowdall, Dr. Marc Faber, Dr. Thomas Kaplan, Gregory Lang, Gillyeard Leathley, Igor Levental, Kalidas Madhavpeddi, Gerald McConnell, Clynton Nauman, Rick Van Nieuwenhuyse, Anthony Walsh.

These proposed nominees have been contacted and all consent to their nomination to the board. Can I have a motion nominating these 11 individuals for election of directors of the corporation to hold office until their successors are duly appointed? Do I have a seconder? Thank you. Are there any further nominations? There being no further nominations, I declare the nominations closed.

Given the majority voting policy recently adopted by the Board of the corporation, a poll will be taken on this matter. Any registered shareholder present who wishes to cast the ballot may do so unless the shareholders who already voted a proxy. Those shareholders who have not given proxies need not vote again and should not vote again using the ballots unless they first sign a revocation of proxy. Ballots and revocation forms were made available by Computershare representatives at registration. If you are entitled to vote on this matter but did not receive a ballot please raise your hand and the scrutineer will provide you with one.

On the ballot you will find the names of 11 management nominees. Please indicate whether you hold or against, now you've cast the ballots of the proxies. I declare Sharon Dowdall, Mark Faber, Thomas Kaplan, Gregory Lang, Gillyeard Leathley, Igor Levental, Kalidas Madhavpeddi, Gerald McConnell, Clynton Nauman, Rick Van Nieuwenhuyse and Anthony Walsh elected directors of the corporation to hold their office until their successors are duly elected or appointed. Details as to the vote for or withheld for each individual nominee will be disclosed in the manner provided by a majority voting policy.

The next item of business is to appoint the auditors of the corporation to hold office until the next annual meeting. The Chair will entertain a motion that PricewaterhouseCoopers LLP located in Vancouver, British Columbia, be appointed auditors to the corporation and hold that office until the next Annual Meeting or until their successors are duly appointed and that the directors be authorized to fix their remuneration. Do I have such a motion? Thank you, all in favor. Any against? The motion is carried. I now declare Price Waterhouse Coopers are hereby appointed auditors to the corporation to hold office until the next Annual Meeting of the shareholders.

The next item of business is to consider and if thought fit to authorize the corporation to enter into an agreement to amend our existing escrow agreement to permit the release of certain founder shares from escrow. The escrow agreement and related background information are summarized on pages 11 through 13 of the management information circular. The full text of the proposed escrow shares release resolution is set out in Appendix A of the management information circular.

Do I have a motion? Do I have a seconder? Is there any discussion on the motion? All those in favor of the escrowed share release resolution please raise your right hand. I note that the common shares held by Mr. McConnell and Mr. McIsaac will not be counted for the purposes of determining whether or not the resolution is passed. Are there any against? I therefore declare the escrowed shares release resolution carried by a majority of votes cast on the resolution.

The next item of business is to consider and if thought fit approve the continuance of NovaGold under the Business Corporations Act of British Columbia, from under the Companies Act of Nova Scotia. The proposed articles are attached as Appendix C to the management information circular. Comparison of rights under the BC, BCA and the NS CA, and the summary of certain provisions of the proposed articles are set out on pages 12 through 21 of the management information circular.

The directors of NovaGold considers that the continuance is in the best interest of the corporation and recommend that the shareholders vote in favor of the continuance. The form of resolution proposed to approve the continuance is set out in Appendix B of the management information circular. In order to be effective, the continuance resolution must be passed by three quarters of the votes cast on the resolution.

I note that in accordance with the continuance resolution, the directors of NovaGold, may notwithstanding shareholders' approval at this meeting abandon the application without further approval of shareholders. In making such a determination the directors in their discretion will determine whether it is in the best interest of the company to proceed with the continuance after considering all relevant facts at the particular time, whether or not foreseen at this time.

Do I have a motion to approve the continuance resolution? Do I have a seconder? Is there any further discussion on the motion? I am requesting that a poll has been taken on this matter. Any registered shareholder present who wishes to cast the ballot may do so unless a shareholder has already voted a proxy. Those shareholders have been given proxies and need not and should not vote again unless they first sign proxy revocation.

Ballots and revocation forms where made available by Computershare representatives at registration. If you are entitled to vote on this matter but did not receive a ballot please raise your hand and the scrutineer will provide you with one.

I will now cast a ballot for all of the proxies which I hold. I have been advised by the scrutineer and over 80% of the shares have voted in favor of the resolution. It is more than three quarters of votes cast and voted in favor of the continuance resolution I declare the continuance resolution carried as a special resolution of the corporation.

The formal items of business have now been dealt with. Is there are any further business? As there is no further business the Chair will now entertain a motion to conclude the meeting. Do I have a seconder? Carried. The formal portion of the meeting is now concluded. Thank you everyone for your attention.

My presentation today of course contains some forward-looking material and the copies of this Safe Harbor statement are available on our website. Thank you for the Annual General Meeting. It’s appropriate to look back on what the company accomplished in 2012. In the first quarter of the year we had a brought deal financing and raised over $300 million. It’s one of the largest financings in the gold industry last year.

I am pleased with our consistent reorganization plans. NovaCopper was spun (ph) out to the shareholders in the second quarter. In the third quarter of the year the Donlin Gold Feasibility Study was accepted by the owners and the Board of Donlin authorized management to commence permitting. In the fourth quarter of the year we successfully divested our Rock Creek mine and other assets around Nome, Alaska, certainly simplifies the company going forward.

In the fourth quarter the notice of intent preparing the IS was published in the federal register, which formally initiates the permitting process. We also strengthened the management team with industry leaders from throughout the gold industry.

Looking ahead to this year, in the first quarter we received $54 million proceeds from in the money warrants further strengthening our treasury. We also updated our shareholders with very exciting results from the Galore Creek project.

Richard Williams joined the company as Vice President of Engineering. Richard has just finished seven years as Project Director at Pueblo Viejo in the Dominican Republic and his experience is both timely and relevant to what's ahead for NovaGold.

We also completed the public scoping process for the Donlin EIS. During this process the communities were well engaged and the State of Alaska and the surrounding communities was very supportive of what we are planning at Donlin.

We also reduced our convertible debt by $72 million. Later on this year we will be updating our stakeholders on the results of the ongoing work at Galore Creek as well as updating them on the progress of permitting at Donlin. We are also throughout the year, looking at opportunities to reduce the capital costs and enhance the returns to the Donlin project.

Now why are we so focused on Donlin? In terms of its size, its grade, its production profile, exploration potential and most importantly in today’s world jurisdictional safety the Donlin project ranks top of the class in all of these aspects.

Now Donlin at just under 39 million ounces is the largest development gold project in the industry far and away greater in scale in any of the other mines that are being contemplated or under construction. Looking at the grade at Donlin, Donlin’s 2.2 grams is the highest grade at the major large scale development projects in the industry, almost twice the grade of many of the mines that are being considered or are in construction.

Donlin will also be the largest producer. Its annual output the first five years it would be about a 1.5 million ounces a year followed by decades of over a 1 million ounces a year production. Exciting aspect about Donlin is only 3 kilometers of an 8 kilometer district have been extensively tested by drilling and there is certainly going to grow this asset, even double it.

Jurisdictional Safety, I think a year ago when we were out on the brought financing, we talked about jurisdictional safety, people just no, no, the world is fine place, you guys are fear mongers at NovaGold. But you looked at what’s happened since then between Cruze in Mali, project stopped in Q2, civil unrest and Greece.

Now you can spend all day talking about what’s happened in just a year’s time. Just this year, we have seen governments renegotiate existing agreements. Everywhere you turn in the gold industry governments and communities are looking for a bigger contribution from mining companies. But we’re in Alaska and on our private land.

To appreciate the significance of an asset like Donlin, of the approximately 150 gold mines that produce more than 100,000 ounces a year, there is only six that produce over a million ounces a year. Donlin is among them.

And looks what’s happening in the industry. Gold prices have been very erratic lately but exploration spending has been increasing but the rate of discoveries has been steadily declining for the last 10 years which further enhances the value of assets like Donlin.

We’ve also been faced with the period of escalating cost of production in the gold industry. This is driven by two factors, the normal inflationary cost pressures that companies are facing in terms of labor and energy and the other inputs into producing an ounce of gold and also the fact that mine grades have steadily declined through the last 10 years. They grade of the Donlin Gold Project at 2.2 grams is where the industry was over a decade ago.

If Donlin were built today, it would be the largest gold mine production for its first five years and many of the other plus million ounce a year producers have been around a long time and their production rates are steadily declining.

The other appealing aspect about the Donlin project in NovaGold as we transition into a pure gold play and that is the leverage that we provide to our shareholders. The project has been acceptable rate of return at today’s gold prices but a twofold increase in gold price gives us a twenty fold increase in the valuation of Donlin. Donlin will be a low cost mine. First five years, $400 an ounce, life of mine about $600 an ounce. This compares very favorably to current industry costs of over $700 ounce, cash alone.

This slide simply depicts the cumulative cash flow from Donlin in a verity of gold prices. What’s really striking about this that is under any realistic price assumption scenario the owners of Donlin will achieve payback for their investment very early in the mine life. And this is the mine life that will go easily decades or more.

The Donlin project we have located in Alaska. Alaska is the second largest gold producing state in the U.S. There is five major mines and production has been increasing in recent years and this is also a state that appreciates the value of a strong natural resources sector.

We are committed to responsible my mining and the Donlin gold project is in a good part of the state. We're fairly isolated. There is no major population centers or fishing or commercial activates nearby, but importantly we have strong support from our local communities.

One thing that really differentiate Donlin from other projects, that is the underlying owners. There are two Alaska native corporations involved Calista on the mineral estate and TKC on the surface rights. Both of these companies have a significant financial stake in seeing the mine going forward. This mine is in a part of Alaska where there is very few economic opportunities for people and our Native partners appreciate the value of Donlin and what it can do for their people.

Permitting at Donlin, we started this process about a year ago, thus far has proceeded very smoothly. We’re now into the stage of preparing the preliminary draft, environmental impact statement which will go out to agency review and then ultimately out to the public for comment.

Permitting in the U.S. is a fairly lengthy process that once you complete, you know that (inaudible) of your label will be protected. We are also well positioned to reduce capital costs and Donlin and we all followed what's happened in the mining industry and seen many projects canceled or deferred and this has taken a lot of the pressure off of equipment suppliers, engineering firms and the other major components of building a project like Donlin.

We think the feasibility study was prepared at the time when capital costs were peaking. Since then that's come off markedly. Equipment delivery times through heavy equipment used to be measured in almost years. It's just about weeks and months now.

But in addition to the economic forces that are lowering in the capital costs, we have some very real opportunities through third party participation in areas such as the gas pipeline, leasing mining equipment, the ports and oxygen plants. We have opportunities to share the upfront capital costs with other companies.

Now our Galore Creek project; this project is also in a mining friendly jurisdiction in British Columbia. All of the issues of jurisdictional safety that plagued the gold industry, same ones in the cooper space. Galore is a large scale project with over 9 billion pounds of copper and 8 million ounces of gold.

Earlier this year, we announced results from last year's drilling program, which significantly enhanced the confidence in the resource and also resulted in the discovery of a new zone that we've called Legacy, which lies in very close proximity to the planned open pit. This new zone will further enhance the economics of the project and we will be drilling it again this summer.

The other aspect about NovaGold which is important, through the restructuring, we have significantly reduced the Company's financial obligations. Last year it cost almost a $130 million to run the business. Now that we have simplified the company and focused it on just Donlin; our cash burn rate has dropped to about $40 million.

We have $ 220 million cash on hand and clearly enough to see Donlin through permitting even if we do not sell the Galore project. Now these are very turbulent times in the gold industry but NovaGold is well positioned to focus on what we are doing in Donlin, and ride out the turbulence.

With Richard joining us, we complete the team of industry leaders, who will join the company and take the Donlin Gold project forward. These are all individuals who understand the gold space and understand the virtue of an asset like Donlin.

We have got an exciting year ahead. We have got a simple company. We are focused on taking Donlin forward. We got an experienced management team, committed stake holders, and a strong balance sheet.

That concludes my presentation, before I introduce our Chairman Dr. Kaplan, I would like to sincerely thank all our stake holders for their contributions to NovaGold's progress over the last year, from our employees and project teams at Donlin and Galore to the first nations in the jurisdictions we operate, in particular the Calista Corporation, the Kuskokwim Corporation and the Tahltan Nation.

Management would also like to thank our Board of Directors for their shareholder friendly attitude and value focused vision. It is also equally important to thank our shareholders who have shown us their support and trust in these turbulent times. With that I have the pleasure of introducing our Chairman, Dr. Thomas Kaplan. Tom?

Thomas Kaplan

Thank you very much Greg. It’s a pleasure and a privilege to be back in Vancouver and to follow a presentation which for anyone who was paying attention, really exhibits exactly the kind of company that one would want to have exposure to if one was bullish on gold; which leads me to ask you to ponder one thing. It’s a word and the word is gold bug.

In my travels, I have occasion to meet with people of all different stripes, economic positions, races, creeds and colors and if we get into a conversation on gold, every once in a while, I'll meet someone who is bullish and invariably they will say of themselves, I am a gold bug too.

A couple of weeks ago, I found myself in the Middle East and I was talking to several people in the office and one of them pointed at the other one and said you should really talk to Abdul, he is a gold bug. So I swiveled the chair and started to talk to Abdul. And I said, Abdul have you ever reflected on the fact that being a bull on gold is the only phenomenon in which the person who is bullish is referred to as an insect.

Try to think for that for a moment. I said, if you were bullish on wheat or you are bullish on Zinc or you are bullish on copper or oil, you are not a wheat bug, you’re not a zinc bug, you’re not an oil bug, you’re a bull. It’s a respectable expression. But not with gold. And therein I really think is an opportunity for us to be able to delve into the nature of today’s gold bull market.

First of all let me start by saying, I remain a gold bull. In fact my conviction is stronger than it ever has been before. Now it’s true, that one of the reasons that I love gold is that most people love to hate gold, or hate to love gold, and anytime an asset can be treated with the kind of derision on that gold is today, it merits a closer inspection.

So upon closer inspection, where are we today in the gold market? If you were to read the press and the pundits, almost without exception you would find that the sentiment is negative and that most people have determined unequivocally that we have seen the peak in the gold bull market and that gold was a bubble which has burst.

I don’t believe any of that. I don’t believe that we’ve seen a bubbling gold. In fact I don’t even believe that we had seen the beginning of the bull market in gold. I think that if you want to give a historically analogy to where we are, that the closest analogy that I can find at 1987 in the Dow, with the Dow having risen about a 1000 for the first time in 1983-1984, experienced a spurt upwards, a pull back, we all know what happened in 1987. But now I would ask you to go back and take a look at a long term chart of the Dow. Do you note that the crash of ’87 is almost imperceptible without a pair of glasses? That’s how shallow it has been in the historical terms.

Even if at the time it was one of those events which ranked with the Kennedy assassination that you remember where you were when the Dow crashed it was a meaningless event. I think that we are in 1987 in gold. So the question remains, why should someone be bullish on gold? Those people who know me know that I have rarely, if ever, and in fact I would say consciously avoided the concept of gold ownership for the negative reason, that you want to avoid depression, you want to save your wealth if there is hyperinflation, it's a hedge against war in the Middle East; never spoken about those things. Now I could argue that any of a number of those things could contribute to a bull market in gold. But that’s not a reason to own gold.

The reason to own gold is because we have been exhibiting a bull market or a bubble in paper of all time. Nobody in the history of the world has ever seen what we are experiencing now, in terms of the reevaluation, not to mention the revaluation of money.

All over the world people are printing money though it’s gone out of style. The EU has said that if necessary they will engage in unlimited bond buying. I don’t have to tell you what the U.S. said and has been doing. Bernake said decades ago that if he found himself in the position where the economy was in crisis, he will throw money out of helicopters. He has been throwing money out of helicopters. He is good to his word.

The Swiss, I am not saying Swazis (ph), the Swiss have basically said that they will print Swiss Francs until there are no more trees left in Switzerland, if that’s what it will take to keep the Swiss Franc weak against in the Europe and now the Japanese have embarked on a monetary expansion, they are going to double their money supply in one year. This has never been seen before in a modern country. To describe, this as uncharted waters, would be to give a heart attack to a cartographer. This is terra incognita and yet 40 countries around the world and counting, are pursuing zero interest rate policies, if not engaged in outright money printing.

When you have an opportunity to be able to own the only money that cannot be printed and the only one which has a two-three-four-five thousand year pedigree, that’s a good bet. The fact that people don’t like it, I would say they didn’t like the Dow at a 1300 either, but anyone who closed their eyes and sit, you know something, we’re dealing with a paradigm shift went on to engage in one of the biggest bull markets in the history of mankind and I believe that we are going to see that with gold. So yet, insect or not, I am bullish on gold.

So that leads us to NovaGold. What is it that so excites me about NovaGold? And remember, I wear two hats as the largest shareholder and the chairman of the largest shareholder, as well as the chairman of NovaGold itself.

What I love about NovaGold is that it gives us all the leverage to the eventual bull market and gold in a jurisdiction that will allow us to keep the fruits of that leverage. A year ago when we spoke, the concept of jurisdiction was just starting to take hold. I would like to say that we were early in recognizing that the real jewels in the crown, in the gold space will be those which have exposure to North American assets.

What you want out of a gold equity is to be in a place where the rule of law is not a novelty. As we see with every passing week, countries which were regarded as being good jurisdictions are now going into the path of being un-investable.

So I would argue that when gold turns around whether it’s a month from now, six months from now or a year from now, it’s very hard to say, no one can predict that with certainty but when gold turns around, should here be a move back into precious metal equities and I do believe there will be, the bubble that we will see will be in those very, very few North American plays where an institutional investor can stay hand on heart to his investment committee.

This is a place where I would go on vacation and then they'll say you can buy it. If you can’t answer the right question which is not do you have a world class asset but where in the world are you, you will not investor attention.

So when I look at NovaGold, I say to myself, this has everything that I look for as an investor who wants leveraged gold but it so happens that I'm able to buy it at a price that would make Ben Graham of Graham and Dodd's blush because the company is trading below breakup value. If you strip out $220 million in net cash and you attach a value to Galore, you’re basically getting what we argue is the very best gold development story in the world for almost nothing. It will be the largest single gold producing mine in the world, it has the potential to expand its resources dramatically, it has a grade that you only find for a large scale mine in the Congo and of course it’s not in the Congo, it’s in the United States, in the second largest gold producing state in the Union. Donlin will be built and when it’s built it would be one of the great trophies of the industry.

Right now we’re dealing with a nuclear winter in the space but seasons always change and you will go from winter to spring and we will all rejoice as being shareholders of NovaGold. One thing which I think all of us should take into account is, you might say Tom is an investor, he is bullish, he is delusional, he is exuberant on gold; okay.

But then ask yourself a question why is it that people of the quality and the stature within the industry of Greg Lang, Dave Deisley, Dave Ottewell, Richard Williams, why are they joining this company? Could it possibly they because they understand that in a period asset scarcity and almost asset invisibility in terms of safe jurisdiction that this is something that’s going to be dealt and that they want to be part of it.

I would argue that’s the case. And so when you look at everything, the assets that we have in the ground, the assets that NovaGold has in terms of its people and the concept that gold itself may very well not be over but may just be in the process of a normal correction after 12 years in which there wasn’t one, we could be on the cusp of something very, very exciting.

But the bottom line is this, if you are a bull on gold, you want to have NovaGold in your portfolio and when gold turns, that’s going to be a very powerful story not just for us as shareholders but for new people who want to be able to have access to great leverage and the development space in a place that they defend their investment.

And so with that I take the opportunity to thank those of the management and the directors are here, thank our shareholders and stakeholders amongst the native corporations for their support and take the opportunity to open floor to questions for Greg, myself, and any of the management team that people would like to speak to. Thank you.

Question-and-Answer Session

Operator

(Operator Instructions)

Thomas Kaplan

May it be possible that we can take from this silence, stunned admiration, in which case we will regard it as being flattering. One more time would anyone like to ask questions of any of us while we're here? If not I will pass the baton back to the chairman of the meeting.

Unidentified Analyst

When do you expect to start mining?

Thomas Kaplan

The question was when do you expect to start mining. We're now well into the permitting process which we signaled to the market would be three to four years. That remains a valid timeline. We would then expect to make a production decision. Building the mine would take how many years?

Gregory Lang

Three to four years.

Thomas Kaplan

Three to four years, so effectively you're looking out at 2020 roughly. Any more questions?

Unidentified Analyst

I am 87 years old and I would like to see some results after having been a shareholder after all of these years.

Thomas Kaplan

The gentleman has said that he is 87 years old and he would like to see some results after having been a shareholder after all these years. For what it's worth, I feel like I'm 87 years old and so I share your predicament. The reality is that we live in an industry in which there are very few assets. The majors can't find them, the juniors can barely find them and when you consider that Donlin has undergone 15 years of studies, arguably the most comprehensive baseline environmental study of any gold mine ever developed, you realize this is an industry in which patience is not simply a virtue, but it's a necessity.

I have no doubt by the robustness of your questioning that you will live long enough to see this mine go into production and to enjoy the fruits of your patience, but the reality is it takes what it takes. But it does raise a very interesting point. Imagine today someone makes a discovery and they're able to find something of this grade, they're able to find something of this size, they're able to find something with safe jurisdiction, you can now envision that it would probably take on the order of 20 years to be able to take that from discovery into production.

When you see it through that prism, you realize what a fantastic opportunity Donlin is, because it's gone through all of those teething pains to get to the point where we are now in permitting and can actually envision production. Gold is a very, very, very scarce asset, much scarcer than people believe. The beauty of gold, you don't have to believe in words and testaments and the horsemen of the apocalypse, mere supply and demand will take care of it for us, but we will go into production and this will be one of the best, most attractive long life mines in the entire gold space, mark my words. And you'll be there with a shovel when we inaugurate it. Any further questions?

Operator

There are no questions online.

Thomas Kaplan

I’ll hand back to Greg.

Gregory Lang

Thank you Tom. I think that concludes this afternoons proceedings. Thanks everyone for taking the time to join us.

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