initiating coverage- target 8.00RedChip Visibility Initiates Research Coverage on NovaGold Resources
November 19, 2009: 10:33 AM ET
ORLANDO, Fla., Nov. 19, 2009 (GLOBE NEWSWIRE) -- RedChip Visibility,a division of RedChip Companies, Inc., has initiated coverage onNovaGold Resources Inc. (TSX:NG) (NYSE Amex:NG), a company focused onprecious metals mining and exploration in North America.
Aditya Khandekar, CFA, RedChip Research Analyst, reported:
"Webelieve the current macroeconomic environment makes the economics ofmetal exploration and mining extremely attractive. Gold remains one ofthe best hedges to inflation, and investment will continue to flow intoprecious metals stocks as investors seek to protect against a fallingdollar and unprecedented monetary easing. Copper prices too areexpected to remain firm over the next several years owing to theinfrastructure-led growth prospects of emerging economies and stimulusspending in the developed economies of the U.S., EU and Japan.
"NovaGold'svaluation will command a premium in the market once the Company is ableto demonstrate substantial progress in transitioning from a developerto a mid-tier producer. We believe there is a strong possibility ofthat happening sooner than the market expects."
Khandekarcontinued: "We are initiating coverage of NovaGold Resources Inc. witha Buy rating and price target of C$8.00 based on: (1) our bullishlong-term outlook for gold as investors flock to the metal in search ofa safe haven for their investments following the economic dislocationsglobally; (2) the market's significantly discounted valuation ofNovaGold's world-class copper-gold-silver project, Galore Creek; (3)the Company's projected transition from a developer to a mid-tierproducer; and (4) the attractiveness of the Company as a topacquisition target in the next wave of industry consolidation."
To receive a complimentary copy of the RedChip Visibility Initial Research Report for NovaGold, please visit https://www.redchip.com/about/aboutmain.asp?pg=vr&rid=202
To learn more about NovaGold Resources, visit https://www.redchip.com/visibility/investor.asp?symbol=NG.
About NovaGold
NovaGoldis a precious metals company engaged in the exploration and developmentof mineral properties in North America. The Company has a portfolio ofmineral properties located in Alaska, USA, and British Columbia,Canada. The Company's largest projects are being advanced with majormining companies. The Donlin Creek project is held by a limitedliability company owned equally by NovaGold and Barrick Gold U.S. Inc.The Galore Creek project is held by a partnership owned equally byNovaGold and Teck Resources Limited. NovaGold owns a 100% interest inthe Rock Creek, Big Hurrah and Nome Gold deposits in Nome, Alaska.NovaGold has one of the largest reserve/resource bases of any junior ormid-tier level producing gold company, and trades on the TSX andNYSE-AMEX under the symbol NG. More information is available online at www.novagold.net or by email at info@novagold.net.
About RedChip Companies, Inc.
RedChipCompanies is an international, small-cap research and financial publicrelations firm headquartered in Orlando, Florida; with affiliateoffices in Paris and Qingdao, China. RedChip delivers concrete,measurable results for its clients through its extensive national andinternational network of small-cap institutional and retail investors.RedChip has developed the most comprehensive platform of products andservices for small-cap companies, including: RedChip Research(TM),Traditional Investor Relations, Digital Investor Relations,Institutional and Retail Conferences, RedChip Small-Cap TV(TM), SocialMedia Services, and RedChip Radio(TM). To learn more about RedChip'sproducts and services please visit: https://www.redchip.com/visibility/productsandservices.asp.
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Disclosure
Theanalysts contributing to this report do not hold any shares of NovaGoldResources Inc. ("NG"). RedChip certifies that no part of the analyst'scompensation was, is, or will be, directly or indirectly, related tothe specific recommendation or views expressed by the analyst in thereport. The equity research report(s) are not a recommendation of asolicitation to purchase or sell any security, nor do they constituteinvestment advice. NovaGold Resources Inc. is a client of RedChipCompanies, Inc. and of RedChip Visibility, a division of RedChipCompanies. NG agreed to pay RedChip Visibility a fee of twenty-fivethousand dollars in cash for RedChip Visibility Program services, whichincludes the preparation of the equity research report(s). The equityresearch report(s) are prepared for informational purposes only and arepaid for by the company portrayed in the report. The equity researchreport(s) are not a recommendation of a solicitation to purchase orsell any security, nor do they constitute investment advice. RedChipCompanies, Inc., is currently engaged by this company to provideinvestor awareness services. Investor awareness services and programsare designed to help companies communicate their investmentcharacteristics. These services may include investor conferences,digital and print distribution of NovaGold investor-related materialsand radio programming. NG agreed to pay RedChip Companies, Inc. amonthly fee of twenty-five thousand dollars in cash and warrants topurchase one hundred thousand shares of the NG common stock (subject toconditions) for twelve months of these services. RedChip Companies,Inc., employees and affiliates may have positions and affecttransactions in the securities or options of the issuers mentionedherein.
CONTACT: RedChip Companies Inc.
Matthew Kantrowitz
1-800-RED-CHIP (733-2447), Ext. 106
research@redchip.com
https://www.RedChip.com
