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NOVAGOLD Stock Rises 2% as Donlin Gold Ownership Expansion and Financing Plans Advance

NOVAGOLD shares rose about 2% on Thursday after the company provided a third-quarter update highlighting progress toward full ownership and development of the Donlin Gold project in Alaska.

The company ended the quarter with approximately $343.4 million in cash and term deposits, providing liquidity to continue advancing Donlin Gold. NOVAGOLD spent $28.1 million during the quarter, including $24.8 million on its share of project activities.

Investor attention remains centered on NOVAGOLD’s planned acquisition of Paulson Advisers’ 40% interest in Donlin Gold. The all-share transaction would increase NOVAGOLD’s ownership from 60% to 100% and is expected to close by year-end, subject to approvals. Donlin Gold is projected to produce an average of about 1.3 million ounces of gold annually during its first 10 full years of operation.

Development activity is also progressing. The Bankable Feasibility Study remains on schedule for completion in 2027, while Endeavour Financial and Macquarie Capital have been appointed to evaluate project and infrastructure financing alternatives.

NOVAGOLD reported a third-quarter net loss of $36 million, or $0.08 per share, reflecting its development-stage status and increased spending on Donlin Gold.

The stock’s gain suggests investors are focusing primarily on the potential consolidation of 100% ownership, progress toward financing and development, and the scale of Donlin Gold rather than near-term earnings.
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Author
European Investor 10-08-26
NOVAGOLD Resources (NYSE American: NG) fell 6.7% despite reporting continued progress at its flagship Donlin Gold project in Alaska and maintaining a strong balance sheet.

The company ended the quarter with approximately $370 million in cash and term deposits, providing significant financial flexibility as it advances the Donlin Gold project toward an updated bankable feasibility study targeted for completion in 2027. Engineering work continues under Fluor, with several major contractors advancing critical infrastructure and processing workstreams.

NOVAGOLD reported a quarterly loss of $25.5 million, reflecting increased spending on project development activities and its larger ownership interest in Donlin Gold. As a development-stage company, NOVAGOLD currently generates no revenue and remains dependent on future project advancement.

The company highlighted Donlin Gold's large resource base of approximately 40 million ounces of measured and indicated gold resources and its potential to become one of the world's largest gold mines, with expected annual production exceeding one million ounces.

Despite the positive project update, investors may have focused on the company's ongoing cash burn, lack of near-term production, and the extended timeline before Donlin Gold could begin generating revenue. The decline also came as gold prices remained under pressure this week, weighing on sentiment across parts of the precious metals sector.
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Author
Global Finance News 06-24-26
NOVAGOLD will hold its 2025 Annual General Meeting of Shareholders virtually on May 15, 2025 at 1:00 p.m. PDT (4:00 p.m. EDT).
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Author
WS Investor 05-01-25