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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