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NOVAGOLD

NOVAGOLD is a well-financed precious metals company engaged in the exploration and development of mineral properties in North America. The company is focused on permitting and developing its 50%-owned flagship property, Donlin Gold, one of the world's largest known undeveloped gold deposits. The Donlin Gold project commenced permitting in 2012, a clearly defined process expected to take approximately four years. NOVAGOLD is also committed to maximizing value of its non-core assets and is currently exploring opportunities to sell its interest in the Galore Creek copper-gold-silver project in British Columbia, Canada.

Expert Comments:

John Bridges, J.P. Morgan (7/9/15)
"The draft environmental impact statement (EIS) for NOVAGOLD's Donlin Creek should be ready for public comment late in 2015 and the plan is to have the full EIS completed early in 2017. . .the company continues to work with the mineral rights and land owners. . .NOVAGOLD's Donlin is a one-of-a-kind project with no true comparable listed asset."

Stephen Walker, RBC Capital Markets (7/7/15)
"We view NOVAGOLD's Q2/15 results as neutral for the shares. The balance sheet remains solid with a cash position of CA$135M as of May 31, 2015. . .we expect sufficient financial capacity for the company to fund the issuance of a draft environmental impact statement for Donlin Gold in late 2015. . .we expect NOVAGOLD to continue to evaluate opportunities to monetize the value of its 50% interest at Galore Creek. No drilling is planned for either Donlin Gold or Galore Creek in 2015."

Jefferson Research (5/29/15)
"NOVAGOLD is showing strong earnings quality, operating efficiency and balance sheet quality, and valuation suggests a lower amount of price risk. . .the overall rating is already a Buy, the best rating available."

"If we get a sustained period of strong commodity prices, exposure to a company like NOVAGOLD could provide leverage to the commodity price. . .its cash is currently around $136M. That provides NOVAGOLD with protection to that optionality. That's an important point because a lot of junior development companies have large projects but do not necessarily have the cash to continue to operate for two or three years. We don't know when the gold price is going to return, so what this cash does is give NOVAGOLD the flexibility to continue advancing its project over the next two to three years as it waits for the commodity price to go upward." read more >

"NOVAGOLD, which has the Donlin project in Alaska, has been a core position in our portfolio for some time. . .we're long-time investors and anticipate production from NOVAGOLD in the future but the company has a ways to go at it is now working on formalizing the permits. . .it's in a safe jurisdiction. It is also a very large deposit that major producers will be interested in developing, such as Barrick, which as a joint venture partner has recently publicly re-affirmed its commitment to that project." read more >

John Bridges, J.P. Morgan (2/2/15)
"NOVAGOLD controls the 34 Moz (proven and probable reserves) Donlin gold project in a joint venture with Barrick Gold Corp. . .with the funds that should see it through to permits, NOVAGOLD is able to sit out the current gold industry turmoil. Gold deposits of Donlin's size are rare, and large deposits in politically safer locations are even more unusual. The regional partners, the Calista and the Kuskokwim peoples, want to see the deposit developed. . .estimating what the company could be worth in a senior gold producer's portfolio, we believe its implied valuation could be between $3.50 and $7.00 per share."

More Expert Comments

Experts Commenting on This Company

John Bridges, Analyst – J.P. Morgan
Doug Groh, Senior Research Analyst – Tocqueville Asset Management L.P.
Jeb Handwerger, Author Gold Stock Trades
John Hathaway, Senior Managing Director – Tocqueville Asset Management L.P.
Keith Phillips, Managing Director – Cowen & Co.
Raj Ray, Analyst – National Bank of Canada
Stephen Walker, Analyst – RBC Capital Markets

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
 
High-grade deposits with excellent production profiles and exploration upside
 
Safest leverage to gold, assets located in top-rated mining jurisdictions
 
Supportive, loyal and engaged stakeholders
NOVAGOLD Content