NovaGold Resources Inc. (USA) (NYSEMKT:NG) is banking on Donlin mine


Dallas, Texas 10/07/2013 (Financialstrend) – NovaGold Resources Inc. (USA) (NYSEMKT:NG) has a market cap of close to $706 million. It has accumulated close to $65 million net loss. It is still considered a development stage company with close to 316 million shares outstanding. As of close of business on October 4, the company share was trading at $2.23 per share down 2.1% from its previous day close. The trading volume through the day was also less than normal with only 906500 shares of the stock changing hands in comparison to its average daily trading volume of 2.03 million.  At these depreciated value, the stock is trading close to 60% lower than its 52 week high valuation and is up 17% from its 52 week low pricing.

The stock has lost close to 14% of its value in the past 30 days and has shed close to 60% of its market cap in the past 12 months. It was in this context that the Greg Lang – President & CEO presented at the Denver Gold Summit on September 23. A closer look at his comments will help decipher what lays ahead for this firm.

Mr Lang identified Donlin project in Alaska and Galore Creek in British Columbia as the two focus areas of the company over the next fiscal. It has tied up with couple of local partners to execute on the development of these properties.

The company is putting into use the close to $300 million the company had raised in 2012 to fund its development activities.  This war chest was furthered bolstered by the $54 million it received from the money warrants it had issued earlier in the year. Some of the money has been used to reduce its convertible debt by close to $70 million. Going forward the company is hoping to start production at its Donlin mine property.