Looking for ways to raise capital for their two flagship projects, NovaGold (AMEX:NG) has been putting feelers out for some time concerning its Ambler project, which includes copper, zinc, gold and silver.
The company says the project is drawing a lot of attention and they're going through what is presumed to be a variety of offers to see which is the best way to go.
CEO and president Rick Van Nieuwenhuyse said, “With copper over $4 and zinc over a dollar, it certainly has attracted a lot of attention from a lot of different places, some of which we didn't really expect to have to consider.
“It's a good news thing, that we have a lot of interest from a lot of different areas but we'll just do a diligent job of assessing them and deciding which is the best.”
This is part of NovaGold's strategy with its main assets, which include 50% holdings in 2 big development projects – the Donlin Creek gold project in Alaska, which it co-owns with Barrick Gold (NYSE:ABX), and the Galore Creek project in British Columbia, where Teck Resources (NYSE:TCK) is the other partner.
NovaGold is looking to divest of non-core assets which will pay for its portion of the capital costs of bringing the projects online.
NovaGold closed Thursday at $13.85, dropping $0.41, or 2.88 percent.
Showing posts with label Donlin Creek. Show all posts
Showing posts with label Donlin Creek. Show all posts
Friday, March 4, 2011
Tuesday, December 21, 2010
NovaGold (AMEX:NG) Makes Copper Canyon (TSXV:CPY) All-stock Bid
NovaGold (AMEX:NG) has reportedly made a $34.1 million all-stock bid for joint-venture partner Copper Canyon Resources (TSXV:CPY).
The key asset held by Copper Canyon is the percent interest they hold is the Copper Canyon copper-gold-silver property they're partners with NovaGold in, which holds the remaining 60 percent in the venture.
Also held by Copper Canyon is the Abo gold project, located in Harrison, B.C.
NovaGold said in a statement, "Copper Canyon shareholders will have continued upside exposure to the Galore Creek project and will gain exposure to a world class portfolio of North American gold and copper-gold projects."
The offer is subject to two-thirds of shareholders in Copper Canyon tendering their shares, along with the usual regulatory approval and waiver of the rights plan of Copper Canyon shareholders.
Copper Canyon CEO Tim Termuend made the usual comments of the offer being too low and how the assets they hold were of such high quality as to draw the bid.
Termuende said, "By making an offer for Copper Canyon, NovaGold has clearly acknowledged the quality and calibre of the Copper Canyon assets."
The offer from NovaGold was 0.0425 of a common share for each Copper Canyon common share. As of last Friday's closing price, that was equal to 60 cents a share.
The asset in question is right next to the Galore Creek project, which NovaGold and Teck Resources Ltd. (NYSE:TCK) own equally.
NovaGold is also in a 50-50 joint venture with gold mining giant Barrick Gold (NYSE:ABX) with the Donlin Creek property in Alaska.
The key asset held by Copper Canyon is the percent interest they hold is the Copper Canyon copper-gold-silver property they're partners with NovaGold in, which holds the remaining 60 percent in the venture.
Also held by Copper Canyon is the Abo gold project, located in Harrison, B.C.
NovaGold said in a statement, "Copper Canyon shareholders will have continued upside exposure to the Galore Creek project and will gain exposure to a world class portfolio of North American gold and copper-gold projects."
The offer is subject to two-thirds of shareholders in Copper Canyon tendering their shares, along with the usual regulatory approval and waiver of the rights plan of Copper Canyon shareholders.
Copper Canyon CEO Tim Termuend made the usual comments of the offer being too low and how the assets they hold were of such high quality as to draw the bid.
Termuende said, "By making an offer for Copper Canyon, NovaGold has clearly acknowledged the quality and calibre of the Copper Canyon assets."
The offer from NovaGold was 0.0425 of a common share for each Copper Canyon common share. As of last Friday's closing price, that was equal to 60 cents a share.
The asset in question is right next to the Galore Creek project, which NovaGold and Teck Resources Ltd. (NYSE:TCK) own equally.
NovaGold is also in a 50-50 joint venture with gold mining giant Barrick Gold (NYSE:ABX) with the Donlin Creek property in Alaska.
Wednesday, November 17, 2010
NovaGold Resources (AMEX:NG) Starting to Make its Move?
NovaGold Resources (AMEX:NG), if for no other reason, has garnered some attention because of investment of major players like George Soros, John Paulson and Marc Faber. Faber also sits on the board of the company.
NovaGold recently started to make a momentum move, although they have pulled back with the price of gold, although they've rebounded nicely today.
They continue to be a long-term investment, even though they will make money in the short term from momentum alone because they are largely undervalued, and the long term for the same reason.
But much of the company is potential at this time, because their huge Donlin Creek project in Alaska will take time to bring online. Some measure that project alone as pricing the company at about $40 a share.
NovaGold is trading at $14.44, gaining $0.97, or 7.20 percent as of 12:25 PM EST.
NovaGold recently started to make a momentum move, although they have pulled back with the price of gold, although they've rebounded nicely today.
They continue to be a long-term investment, even though they will make money in the short term from momentum alone because they are largely undervalued, and the long term for the same reason.
But much of the company is potential at this time, because their huge Donlin Creek project in Alaska will take time to bring online. Some measure that project alone as pricing the company at about $40 a share.
NovaGold is trading at $14.44, gaining $0.97, or 7.20 percent as of 12:25 PM EST.
Wednesday, July 14, 2010
NovaGold's (AMEX:NG) Donlin Creek Getting More Expensive?
Now that NovaGold (AMEX:NG) losses have mounted over the last quarter, they are getting more aggressive in pursuing capital to work on their Donlin Creek project, which is by far their most important mine. They are in a 50/50 partnership with mining giant Barrick Gold Corp. (NYSE:ABX) in the project.
Either the costs at the project are increasing, or NovaGold is pushing harder to get it going, as the proven gold reserves of 34 million ounces, valued at about $41 billion at today's gold prices, has them salivating over the prospect of getting gold production going.
Marc Faber recently joined the board of the gold miner, and financial giants like John Paulson and George Soros have invested millions into the company.
At this time all the appropriate studies are being conducted, which take time, and the gold production may not start until as late as 2017.
With NovaGold having to pay close to $2.2 billion in capital costs for Donlin, you can see why they need more capital to operate until production begins.
This is of course nothing new to the industry, but if costs do increase, NovaGold faces challenges over the long term. Having Faber on the board and a resume of Paulson and Soros investing about $175 million in them, they do have a solid foundation and argument to work from.
Now they will attempt to battle to keep their 50 percent stake while raising capital, as their giant partner could easily take up the slack if problems arise, which NovaGold wouldn't want to allow to happen.
Over the long term this is a sure thing, now NovaGold has to raise the needed and significant amount of capital to last long enough to cash in, without giving up anything else.
Either the costs at the project are increasing, or NovaGold is pushing harder to get it going, as the proven gold reserves of 34 million ounces, valued at about $41 billion at today's gold prices, has them salivating over the prospect of getting gold production going.
Marc Faber recently joined the board of the gold miner, and financial giants like John Paulson and George Soros have invested millions into the company.
At this time all the appropriate studies are being conducted, which take time, and the gold production may not start until as late as 2017.
With NovaGold having to pay close to $2.2 billion in capital costs for Donlin, you can see why they need more capital to operate until production begins.
This is of course nothing new to the industry, but if costs do increase, NovaGold faces challenges over the long term. Having Faber on the board and a resume of Paulson and Soros investing about $175 million in them, they do have a solid foundation and argument to work from.
Now they will attempt to battle to keep their 50 percent stake while raising capital, as their giant partner could easily take up the slack if problems arise, which NovaGold wouldn't want to allow to happen.
Over the long term this is a sure thing, now NovaGold has to raise the needed and significant amount of capital to last long enough to cash in, without giving up anything else.
NovaGold (AMEX:NG) Losses Three Times Worst Than Last Year
NovaGold (AMEX:NG) (TSE:NG) had a poor second quarter, with losses coming in at $15.8 million, over three times the $4.8 million in losses last year.
Revenue for the quarter also plunged, dropping to only $100,000, down from $300,000 in the same quarter last year. The company said that was due to declining gravel and land sales.
Losses came in at seven cents a diluted share for the latest quarter, compared to 3 cents a diluted share in the same quarter in 2009.
Near term the best project for NovaGold is its Donlin Creek property in Alaska, which it has a 50 percent share in with gold mining giant Barrick Gold Corp. (NYSE:ABX) (TSE:ABX).
That project should produce about one million ounces of gold on an annual basis over a 20-year period or more. It's now in the pre-permitting phase of development.
Revenue for the quarter also plunged, dropping to only $100,000, down from $300,000 in the same quarter last year. The company said that was due to declining gravel and land sales.
Losses came in at seven cents a diluted share for the latest quarter, compared to 3 cents a diluted share in the same quarter in 2009.
Near term the best project for NovaGold is its Donlin Creek property in Alaska, which it has a 50 percent share in with gold mining giant Barrick Gold Corp. (NYSE:ABX) (TSE:ABX).
That project should produce about one million ounces of gold on an annual basis over a 20-year period or more. It's now in the pre-permitting phase of development.
Friday, June 18, 2010
NovaGold Resources (NYSE:NG) Soars on Gold Prices
Although well off its 52-week high of $9.18, NovaGold Resources (NYSE:NG) was among the gold mining leaders on Friday, surging to close at $7.36, a $0.45 gain, or 6.51 percent.
NovaGold attained its high at the beginning of May.
Hedge fund managers John Paulson and George Soros have both expressed deep interest in the company, investing at least $175 million combined in the gold mining company, with Paulson's hedge fund investing $100 million.
NovaGold holds large stakes in Donlin Creek and Galore Creek, both holding huge reserves of gold, which the company now has the money to develop with its partners.
NovaGold attained its high at the beginning of May.
Hedge fund managers John Paulson and George Soros have both expressed deep interest in the company, investing at least $175 million combined in the gold mining company, with Paulson's hedge fund investing $100 million.
NovaGold holds large stakes in Donlin Creek and Galore Creek, both holding huge reserves of gold, which the company now has the money to develop with its partners.
Thursday, June 3, 2010
NovaGold (AMEX:NG), Barrick (NYSE:ABX), Looking to Cook Inlet for Gas Supply for Donlin Creek
NovaGold (AMEX:NG) and Barrick (NYSE:ABX) have launched an initial study to consider implementing a natural gas pipeline, bringing into the project from Cook Inlet, 325 miles away.
The pipeline itself would be 12 inches in diameter.
Estimates at this time are the use of the pipeline as the prime source of energy for the company would result in cutting overall operating costs by as high as 25 percent.
"A natural gas pipeline has the potential to significantly improve operating costs and reduce operating risks," said NovaGold CEO Van Nieuwenhuyse recently.
Annual requirements for the Donlin Creek project would be from 8 billion to 12 billion cubic feet. That could be higher if natural gas is used to power equipment at the mine.
The alternative method of accessing energy if natural gas isn't used would be to ship diesel fuel by barge up the Kuskokwim River.
Another source of energy is a wind energy project close to the mine which would be able to supply about 7 percent of the power to Donlin.
The pipeline itself would be 12 inches in diameter.
Estimates at this time are the use of the pipeline as the prime source of energy for the company would result in cutting overall operating costs by as high as 25 percent.
"A natural gas pipeline has the potential to significantly improve operating costs and reduce operating risks," said NovaGold CEO Van Nieuwenhuyse recently.
Annual requirements for the Donlin Creek project would be from 8 billion to 12 billion cubic feet. That could be higher if natural gas is used to power equipment at the mine.
The alternative method of accessing energy if natural gas isn't used would be to ship diesel fuel by barge up the Kuskokwim River.
Another source of energy is a wind energy project close to the mine which would be able to supply about 7 percent of the power to Donlin.
Wednesday, May 26, 2010
NovaGold (AMEX:NG) Attracts Big Players, Money
NovaGold Resources (AMEX:NG) (TSE:NG) President and Chief Executive Officer, Rick Van Nieuwenhuyse, seems to have a gift for attracting big players and big money to invest in the company, and that has paid large dividends for them at crucial times of their growth cycle.
Some of those investing in NovaGold Resources include billionaire Thomas Kaplan through his Tigris Financial Group, John Paulson with his Paulson & Co. hedge fund, and George Soros with Quantum Partners Ltd.
In the early part of 2009 they also reached a financing agreement with Electrum Strategic Resources, which saved their major Donlin Creek and Galore Creek projects.
Assuming good gold finds, the secret to success for junior gold miners really isn't a secret, it's who can secure financing for their projects in order to bring them online.
With the track record of Rick Van Nieuwenhuyse and his team, it looks like NovaGold will have a long and successful run, as he recently stated they have enough financing for the next three years.
If they're operationally sound and focus on cutting costs, once they are in strong gold production they should get some great returns for their shareholders.
In addition to gold, they also have copper, silver and zinc resources.
Some of those investing in NovaGold Resources include billionaire Thomas Kaplan through his Tigris Financial Group, John Paulson with his Paulson & Co. hedge fund, and George Soros with Quantum Partners Ltd.
In the early part of 2009 they also reached a financing agreement with Electrum Strategic Resources, which saved their major Donlin Creek and Galore Creek projects.
Assuming good gold finds, the secret to success for junior gold miners really isn't a secret, it's who can secure financing for their projects in order to bring them online.
With the track record of Rick Van Nieuwenhuyse and his team, it looks like NovaGold will have a long and successful run, as he recently stated they have enough financing for the next three years.
If they're operationally sound and focus on cutting costs, once they are in strong gold production they should get some great returns for their shareholders.
In addition to gold, they also have copper, silver and zinc resources.
Thursday, May 20, 2010
NovaGold (AMEX:NG) CEO Says Company Good for Three Years
NovaGold (AMEX:NG) CEO and President Rick Van Nieuwenhuyse said earlier in the month that the company has reversed its setbacks over the last three years and is now set financially for the next three years, referring to the financing secured by the gold miner.
Much of the financing required by NovaGold was secured through investment from hedge fund Paulson & Co. and Quantum Partners, which brought them $175 million to help with their capital needs.
Another strategic and important source of financing came from Electrum Strategic Resources in the early part of 2009, which allowed NovaGold to retain its interest in important assets of Donlin Creek and Galore Creek. They also had enough to deal with operational issues at its Rock Creek project, which they should be able to comply with regulations and get it back up and running.
Although the company is going through a correction related to the overall gold price correction, it is close to increasing production and getting going on all cylinders, which should make shareholders happy, and the company very profitable.
Much of the financing required by NovaGold was secured through investment from hedge fund Paulson & Co. and Quantum Partners, which brought them $175 million to help with their capital needs.
Another strategic and important source of financing came from Electrum Strategic Resources in the early part of 2009, which allowed NovaGold to retain its interest in important assets of Donlin Creek and Galore Creek. They also had enough to deal with operational issues at its Rock Creek project, which they should be able to comply with regulations and get it back up and running.
Although the company is going through a correction related to the overall gold price correction, it is close to increasing production and getting going on all cylinders, which should make shareholders happy, and the company very profitable.
Friday, May 7, 2010
NovaGold (TSE:NG), Barrick Gold (TSE:ABX) Consider Natural Gas Pipeline at Donlin Creek
NovaGold (TSE:NG) (Amex:NG), co-owner of the Donline Creek project with Barrick Gold (TSE:ABX) (NYSE:ABX), announced they are launching a feasibility study revision to determine whether or not to supply the project with power from a natural gas pipeline at Donlin Creek.
The feasibility study last year was performed with the idea of using wind and diesel as the power source for the project, which would cost $394 an ounce.
The latest study shows using natural gas could lower operational costs, which account for about 25 percent of all costs for the project.
"A natural gas pipeline has the potential to significantly improve operating costs and reduce operating risk," said Rick Van Nieuwenhuyse, President & CEO of NovaGold. "We look forward to working with Barrick and our Alaskan Native partners to advance the Donlin Creek project through permitting and toward a construction decision."
The pipeline studies and feasibility revision will take approximately 12 to 18 months to complete.
The feasibility study last year was performed with the idea of using wind and diesel as the power source for the project, which would cost $394 an ounce.
The latest study shows using natural gas could lower operational costs, which account for about 25 percent of all costs for the project.
"A natural gas pipeline has the potential to significantly improve operating costs and reduce operating risk," said Rick Van Nieuwenhuyse, President & CEO of NovaGold. "We look forward to working with Barrick and our Alaskan Native partners to advance the Donlin Creek project through permitting and toward a construction decision."
The pipeline studies and feasibility revision will take approximately 12 to 18 months to complete.
Friday, April 16, 2010
NovaGold (AMEX:NG) Underwhelming to Some
NovaGold a challenge short term, great potential long term
For up to five years, it's possible NovaGold (AMEX:NG) could struggle strongly, even though it has two quality gold projects it has a stake in like Galore Creek and Donlin Creek.
It's not the long term prospects of NovaGold that concerns those following the company, as they are very bright, but it's not as simple as taking a stake in them and letting it ride, because until their large mines start to produce gold, there is a huge liquidity problem they face, which must be addressed and overcome if they're going to reach the day they can truly benefit from their holdings.
Even though John Paulson and George Soros invested $175 million in Novagold, which will help them in the early exploration part of their projects, but isn't much when considering the overall cost and scheme of things.
The two large project mentioned above are estimated to cost about $4 billion each to develop, so you can see that while $175 million helps, it's very little when looking at approximately $8 billion overall.
What NovaGold probably represents is the trend small mining companies which hold solid assets will be experiencing over the next several years, and this is larger companies will have to come in and acquire a large portion of those assets if they're to survive and thrive.
NovaGold has a 50/50 partnership with Barrick Gold (TSE:ABX) in their Donlin Creek project, as part of what we'll see going forward.
If NovaGold can survive the next several years, they do have extraordinary potential, and could generate a lot of profits for those investing in them. One must understand the short-term challenges though to determine how to proceed.
The fact that George Soros and John Paulson invested as they did in them show they understand what the huge potential of the company is, and whatever happens to NovaGold, they will reap the rewards, no matter which way they decide to head in the future.
For up to five years, it's possible NovaGold (AMEX:NG) could struggle strongly, even though it has two quality gold projects it has a stake in like Galore Creek and Donlin Creek.
It's not the long term prospects of NovaGold that concerns those following the company, as they are very bright, but it's not as simple as taking a stake in them and letting it ride, because until their large mines start to produce gold, there is a huge liquidity problem they face, which must be addressed and overcome if they're going to reach the day they can truly benefit from their holdings.
Even though John Paulson and George Soros invested $175 million in Novagold, which will help them in the early exploration part of their projects, but isn't much when considering the overall cost and scheme of things.
The two large project mentioned above are estimated to cost about $4 billion each to develop, so you can see that while $175 million helps, it's very little when looking at approximately $8 billion overall.
What NovaGold probably represents is the trend small mining companies which hold solid assets will be experiencing over the next several years, and this is larger companies will have to come in and acquire a large portion of those assets if they're to survive and thrive.
NovaGold has a 50/50 partnership with Barrick Gold (TSE:ABX) in their Donlin Creek project, as part of what we'll see going forward.
If NovaGold can survive the next several years, they do have extraordinary potential, and could generate a lot of profits for those investing in them. One must understand the short-term challenges though to determine how to proceed.
The fact that George Soros and John Paulson invested as they did in them show they understand what the huge potential of the company is, and whatever happens to NovaGold, they will reap the rewards, no matter which way they decide to head in the future.
Tuesday, April 13, 2010
NovaGold Resources (TSE:NG) Lost $18.7 Million in First Quarter
NovaGold Quarterly Report
First quarter results for NovaGold Resources (TSE:NG), while nothing to brag about, did improve over the same quarter last year, as they improved losses from $28.5 million last year to $18.7 million losses this year.
The $28.5 million equaled 20 cents a share, while this year losses were 10 cent a diluted share.
Revenue for the quarter came in at only $30,000 for the quarter, far behind the $300,000 in 2009. Most of that was the result of a major decrease in sales of land in the Alaska market.
NovaGold targets mineral properties in Alaska and British Columbia, Canada for exploration and development.
The future of NovaGold is in its joint-venture with Barrick Gold (TSE:ABX) at the Donlin Creek project, which will produce an estimated 1 million ounces of gold on an annual basis for the next 20 years.
First quarter results for NovaGold Resources (TSE:NG), while nothing to brag about, did improve over the same quarter last year, as they improved losses from $28.5 million last year to $18.7 million losses this year.
The $28.5 million equaled 20 cents a share, while this year losses were 10 cent a diluted share.
Revenue for the quarter came in at only $30,000 for the quarter, far behind the $300,000 in 2009. Most of that was the result of a major decrease in sales of land in the Alaska market.
NovaGold targets mineral properties in Alaska and British Columbia, Canada for exploration and development.
The future of NovaGold is in its joint-venture with Barrick Gold (TSE:ABX) at the Donlin Creek project, which will produce an estimated 1 million ounces of gold on an annual basis for the next 20 years.
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