NovaGold Resources (NYSE:NG) struggles to regain lost momentum


Boston, MA, 09/18/2013 (nysepost) – Since September 11, NovaGold Resources (NYSE:NG) shares have been slipping. It’s down 5% in the last five trading days. It has lost over 15% of its market value in the past 30 days.  Currently the company shares were trading at $2.48 per share. This represents a 2.54% dip in the price. The share is down 59% from its 52 week high price in September’12 and is up 34% up from its 52 weeks low price of $1.9 the shares had plummeted to in July’13. NG stock has been underperforming the market index by a substantial margin. Doe Jones index is trading at 0.23% and basics materials index is hinged at 0.05%.2.23 million shares of Nova were traded on September 17, in comparison to the 65 week trading average of 1.99 million shares per day.

With the fall in share price, the company market cap has shrunk to $842 million with 316 million outstanding shares. The company has not paid a divided in the last two years.

The sustained lack of upward momentum in the stock is linked to its struggling 2Q numbers that got reported on July for quarter ending on May 30.  The company is considered an in development mining firm and hence has no revenue streams yet to fund its operations. The company plans to provide for cash flow that is needed to sustain operations till such a point in time in future when company starts production by offering common stock on sale in the open markets. As of May 30, companies long term convertible debt stood at $22.2 million which becomes due on May’15.

NovaGold is a precious metals company involved in the exploration and development of precious minerals in North America. The Company has assets in Alaska, the United States and British Columbia, Canada.