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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:

"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."

John Bridges, J.P. Morgan (1/28/15)
"The draft environmental impact (EIS) study for NOVAGOLD's Donlin Gold has been completed; it's been circulated to cooperating agencies and responses have been received. The updated EIS should be distributed for public comment this year, and after these responses are included, the final EIS could be released in 2016."

John Bridges, J.P. Morgan (10/9/14)
"NOVAGOLD believes it has passed the halfway stage with permitting its Donlin gold project in Alaska and could be ready to build or sell in late 2016. . .we expect the state to be supportive of Donlin's development."

"NOVAGOLD's Donlin is one of the premier undeveloped gold assets in the world, full stop. There's also a strong partner in Barrick Gold. Donlin is a large, high-grade opportunity in a good jurisdiction, and once it becomes a mine, it will be producing for decades. It's one in a handful of truly strategic assets in the world. [Cowen and Company, JP Morgan and RBC Capital Markets all cover NOVAGOLD.]. . .that institutional support is certainly helpful, but a project of that scale is challenging to finance in today's market. In the market we had four years ago, it would be viable, and we will certainly see such markets again in the future. NOVAGOLD and Barrick are advancing the project and there will ultimately be a construction decision, but even if Donlin were permitted and ready to go and all they had to do was spend the money, I expect they would both choose to pause and wait for better capital markets and better valuations." read more >

"NOVAGOLD is on our watchlist as it owns the Donlin project, where it is partnered with Barrick. It has around 45 Moz gold in the Resource category. Donlin could possibly produce over a million ounces of gold annually at a high grade of 2.2 g/t. It can be purchased at a major discount. NOVAGOLD is currently trading under $4/share. In previous gold bull markets, the company was trading in the mid-teens. As the sector turns, I wouldn't be surprised if it makes that move again." read more >

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.

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