NovaGold Resources Inc. (USA) (NG) Earnings Won’t End the Stock’s Tailspin

Still, NovaGold is pressing on. In April after its last earnings report, CEO Greg Lang noted that Donlin completed public scoping, an early stage of the permitting process. Next, the company will need to prepare a draft environmental impact statement, with NovaGold expecting the process to take three to four years. The company has also taken steps to try to make Galore Creek look more attractive by doing a small exploration program and technical studies there.

Moreover, the company still has the support of hedge fund manager John Paulson, despite his fund having taken a bloodbath in the fall in metals prices over the quarter. Yet with gold having fallen so far in just the past three months, even producing mines have lost investor interest, let alone stocks without any revenue.

In NovaGold’s earnings, watch for the latest information on how the Donlin permitting process is going and whether the company has made any progress in selling Galore. For the most part, though, NovaGold Resources Inc. (USA) (NYSEMKT:NG) is a long-term play that will take years to play out one way or the other. As such, don’t expect NovaGold earnings to reverse the stock’s plunge.

The article NovaGold Earnings Won’t End the Stock’s Tailspin originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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