Novagold Resources (NYSEAMERICAN:NG) Issues Quarterly Earnings Results

Novagold Resources (NYSEAMERICAN:NG) (TSE:NG) released its quarterly earnings data on Wednesday. The mining company reported ($0.06) EPS for the quarter, FiscalAI reports.

Here are the key takeaways from Novagold Resources’ conference call:

• NOVAGOLD announced a transformative all-share deal to acquire 100% ownership of Donlin Gold, consolidating the asset under a single U.S.-domiciled parent company and expected to close in Q4 pending approvals.
• Management said the transaction is immediately accretive to NAV per share and resources per share, while creating a pro forma company with about 33 million ounces of reserves and 40 million ounces of resources.
• The new structure is intended to improve financing flexibility, simplify decision-making, and provide a single point of contact for governments, partners, and capital providers as Donlin advances toward development.
• Executives emphasized Donlin’s standout profile: an expected 1.3 million ounces of annual production in the first 10 years, multi-decade mine life, high grade, and what they described as the safest and most stable jurisdiction for a major gold project.
• The deal preserves NOVAGOLD’s independence through voting caps, standstills, and lockups, with Paulson set to co-chair the board and nominate two directors subject to ownership thresholds.

Novagold Resources Price Performance

NYSEAMERICAN NG opened at $5.92 on Friday. The stock’s 50-day moving average price is $7.01 and its two-hundred day moving average price is $8.90. The company has a current ratio of 112.82, a quick ratio of 112.82 and a debt-to-equity ratio of 0.41. The company has a market cap of $2.60 billion, a PE ratio of -34.82 and a beta of 0.84. Novagold Resources has a 1 year low of $5.07 and a 1 year high of $14.40.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on NG shares. Scotiabank raised Novagold Resources to a “strong-buy” rating in a report on Wednesday, May 6th. Morgan Stanley decreased their price objective on Novagold Resources from $13.80 to $13.60 and set an “overweight” rating for the company in a report on Wednesday, July 8th. Canaccord Genuity Group began coverage on Novagold Resources in a research report on Friday, March 27th. They issued a “speculative buy” rating and a $13.00 target price on the stock. Finally, Zacks Research raised Novagold Resources from a “strong sell” rating to a “hold” rating in a research note on Monday, March 30th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, Novagold Resources presently has an average rating of “Buy” and an average target price of $13.22.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Torren Management LLC purchased a new stake in shares of Novagold Resources in the 4th quarter valued at approximately $27,000. Sunbelt Securities Inc. raised its stake in Novagold Resources by 34,166.7% during the 1st quarter. Sunbelt Securities Inc. now owns 3,084 shares of the mining company’s stock valued at $28,000 after purchasing an additional 3,075 shares during the period. Harbor Investment Advisory LLC acquired a new stake in Novagold Resources during the 2nd quarter valued at $33,000. Leonteq Securities AG purchased a new position in shares of Novagold Resources during the fourth quarter valued at $38,000. Finally, Cubist Systematic Strategies LLC purchased a new position in shares of Novagold Resources during the first quarter valued at $44,000. 57.56% of the stock is owned by hedge funds and other institutional investors.

About Novagold Resources

Novagold Resources Inc is a mineral exploration and development company headquartered in Vancouver, British Columbia. The firm is focused on advancing large-scale precious metals projects through disciplined project management, environmental stewardship and community engagement. Novagold maintains a lean corporate structure while leveraging partnerships and industry expertise to advance its projects toward production.

The company’s flagship asset is the Donlin Gold project in Alaska, a 50/50 joint venture with Barrick Gold Corporation.