06. NovaGold Resources Inc. (NYSE:NG)
Number of Hedge Fund Holders: 16
NovaGold Resources Inc. (NYSE:NG) presents a compelling investment opportunity, driven by the promising prospects of its flagship Donlin Gold project in Alaska. Donlin Gold is a Tier 1 asset, boasting an impressive 40 million ounces of gold with a grade exceeding 2 grams per tonne, which is significantly higher than the industry average. This high-grade deposit, coupled with a projected mine life of nearly 30 years, positions Donlin Gold as a stable, long-term operation capable of producing around 1 million ounces annually at low costs. The extensive exploration potential within Donlin’s vast landholdings further enhances its growth prospects, making it a cornerstone project in the gold mining industry.
NovaGold Resources Inc. (NYSE:NG) commitment to advancing Donlin Gold is underscored by the company’s strategic approach to project development. With most federal and state permits secured and ongoing efforts to update the feasibility study, NovaGold Resources Inc. (NYSE:NG) is poised to make significant progress when market conditions align. The company’s partnership with Calista and The Kuskokwim Corporation, private landowners in Alaska, ensures strong local support and aligns with the community’s vision for responsible economic growth. This social license, combined with Alaska’s favorable mining regulations, provides a stable and secure environment for Donlin Gold’s development.
The project’s strategic importance is amplified by the global decline in high-quality gold deposits, making Donlin Gold’s scale, grade, and longevity increasingly valuable. As gold prices remain strong, Donlin Gold’s potential net present value exceeds $25 billion, highlighting the significant upside for investors. Additionally, the project’s ESG commitments, including community engagement and environmental stewardship, further reinforce its attractiveness as a sustainable and responsible investment. NovaGold Resources Inc. (NYSE:NG) experienced management team remains focused on delivering value to shareholders by advancing Donlin Gold through a disciplined and strategic approach, positioning the company for long-term success in the gold market.
In the second quarter of fiscal 2024, NovaGold Resources Inc. (NYSE:NG) reported a net loss of $10.9 million, primarily due to exploration and project development expenses. The company maintains a strong cash position with $76.8 million in cash and term deposits, which it intends to use for ongoing project expenditures. The Donlin Gold project is a 50-50 joint venture with Barrick Gold, and NovaGold continues to work towards securing all the necessary permits for its future development. Despite the challenges, NovaGold remains committed to its long-term strategy of developing a world-class gold asset. In the second quarter of 2024, 16 hedge funds had positions in NovaGold Resources Inc. (NYSE:NG). The combined value of these holdings is around $172.65 million, with John Paulson’s Paulson & Co holding the largest position among these funds.
