NovaGold Resources Inc. (USA) (NYSEMKT:NG) shares were up 10.95% on Monday to $6.79 after the company printed its second quarter earnings report. The company has a market cap of $2.17 billion at 319.90 million shares outstanding. Shares have been trading in a 52-week range of $2.65 to $6.80 so price is currently at the top.
In its latest earnings report, NovaGold Resources had an earnings per share of -$0.03 versus the consensus estimate at -$0.02. Still, the company managed to maintain a solid financial position with $112 million cash and term deposits.
In its earnings call, NovaGold President Gregory Lang highlighted several milestones that the company was able to reach in the quarter. One of these is the Donlin Gold Project, which is their flagship project. Lang reported that NovaGold was able to transition into the final stage of the EIS process for the project, making them well-positioned to leverage the increasing value of gold. This Donlin Gold property is located in southwestern Alaska, approximately 20 kilometers north of the village of Crooked Creek on the Kuskokwim River.
During the same quarter, the company was also able to complete concept reports for the first phase of the Galore Creek generalized tunneling practice related to the access and material handling tunnel as well as enhancements to the site waste rock and water management plans. The company also pledged to maintain minimal spending int his particular project due to challenges in the copper industry. This Galore Creek property comprises approximately 293,840 acres in British Columbia, Canada.
Still, Lang concluded that NovaGold Resources maintained an enviable position in the industry, compared to other firms that faced huge losses and had to revise their business strategy to account for falling commodity prices. NovaGold Resources is a mineral exploration company engaged in the exploration and development of mineral properties.
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