Gold | C$9.00 |
We are raising our target price to C$9.00 and our takeover valuation to C$16.00 for NovaGold. We are more bullish than before on our outlook for gold prices due to the structural weaknesses in the U.S. dollar, problems with sovereign debt in the Euro zone, and the long-term inflationary expectations from higher commodity prices and loose monetary policies. As a result, we are increasing our long-term average gold price assumption from $900 to $1,000 per ounce. Additionally, among all base metals, the long-term outlook for copper looks the most favorable. Copper prices have surged following the economic recovery and pickup in industrial activity. We expect prices to remain firm over the long-term due to robust industrial demand from emerging markets. Consequently, we have increased our long-term average copper price from $2.50 to $3.00 per pound. Click Here For Full Report
Get the NovaGold company profile Here 
Value PropositionOne of the largest resource bases among its peers. NovaGold has 15.2 million ounces of gold in proven and probable reserves, an additional 9.0 million ounces of gold, 94 million ounces of silver, and 6.0 billion pounds of copper in measured and indicated resources and a further 5.3 million ounces of gold, 63 million ounces of silver and 3.1 billion pounds of copper in inferred resources. This totals more than 29 million ounces of gold and 9 billion pounds of copper in all categories.
Partnered with mining industry giants Barrick Gold and Teck. NovaGold has partnered with two of the world’s largest and most experienced mining producers, Barrick Gold Corp. (NYSE: ABX) and Teck Resources Ltd. (NYSE: TCK), on projects involving some of the world’s largest undeveloped resource deposits; Donlin Creek and Galore Creek. These large, high-quality projects are in safe geopolitical locations in North America which offer lower risk and higher potential value than many other small mining companies can provide.
Unparalleled value and potential growth to investors. NovaGold’s value continues to grow as its projects advance toward production along with any increase in gold prices. With its massive resource base, each share of NovaGold is equal to 0.16 ounces of gold which, at gold’s recent price of around $1088/oz., values each share at over $171 in gold. At NovaGold’s recent share price each $1 invested in the company would represent over $30 in gold resource value.
Investment Highlights
Partnered with mining industry giants Barrick Gold and Teck. NovaGold has partnered with two of the world’s largest and most experienced mining producers, Barrick Gold Corp. (NYSE: ABX) and Teck Resources Ltd. (NYSE: TCK), on projects involving some of the world’s largest undeveloped resource deposits; Donlin Creek and Galore Creek. These large, high-quality projects are in safe geopolitical locations in North America which offer lower risk and higher potential value than many other small mining companies can provide.
Unparalleled value and potential growth to investors. NovaGold’s value continues to grow as its projects advance toward production along with any increase in gold prices. With its massive resource base, each share of NovaGold is equal to 0.16 ounces of gold which, at gold’s recent price of around $1088/oz., values each share at over $171 in gold. At NovaGold’s recent share price each $1 invested in the company would represent over $30 in gold resource value.
Investment Highlights
- In January 2010, the Company announced that it had completed the purchase of 100% of the Ambler property, which hosts the high-grade copper-zinc-gold-silver Arctic deposit.
- In April 2009, NovaGold announced the results of a completed feasibility study for its Donlin Creek gold project. The project is expected to generate nearly $1 billion in operating pre-tax net cash flow annually at $1000/oz.
- In January 2009, the Company announced a $75 million investment by Electrum Strategic Resources, a New York based private equity firm, and several other investors.
- An updated economic assessment is planned for the Galore Creek coppergold project in British Columbia. The project is anticipated to generate more than $1.2 billion in operating pre-tax net cash flow annually at $2.50/lb. copper and $1,000/oz. for gold.
- Overview
NovaGold Resources Inc. (NYSE Amex: NG; TSX: NG) is a gold company engaged in exploration, development and mining in North America. NovaGold focuses primarily on the exploration of gold, silver and copper. The Company owns 50% interests in two of the world’s largest undeveloped gold and coppergold deposits and owns 100% of a high-grade copper-zinc-gold-silver deposit. NovaGold’s current management took the Company over in 1998 and its headquarters are in Vancouver, British Columbia, Canada. 05/05/10
9:25 AM EDTDonlin Creek LLC Initiates Feasibility Revision for Natural Gas Pipeline - Marketwire Canada 05/05/10
9:15 AM EDTDonlin Creek LLC Initiates Feasibility Revision for Natural Gas Pipeline - Market Wire 04/20/10
9:30 AM EDTNovaGold Announces Pre-Feasibility Study Underway at Galore Creek Project - Marketwire Canada 04/20/10
9:15 AM EDTNovaGold Announces Pre-Feasibility Study Underway at Galore Creek Project - Market Wire 04/13/10
7:08 PM EDTCORRECTION FROM SOURCE: NovaGold First Quarter Financial Results and Projects Update - Marketwire Canada 04/13/10
6:52 PM EDTCORRECTION FROM SOURCE: NovaGold First Quarter Financial Results and Projects Update - Market Wire
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