RE: Back to $6 within 12 - 18 monthsTell me one reason that should happen?
Barrick would snap this up in a second in the price came that low. NovaGold's prospects will get developed because they have great partners - teck cominco, barrick and rio tinto. Donlin creek resource is huge - tell me one other mid-grade prospect with 30 million ounces measured and indicated. Galore creek will look more and more feasible with gold at these levels and copper holding steady above $3. Production at nome is starting this year which should produce 100k ounces per year. Management is competent and they haven't had a significant screw-up yet, unlike a lot of small miners. Debt is small and cash position is strong - with revenues from nome will reduce the need for dilution. Not to mention all their exploration properties in Alaska which could increase their resources further. Donlin creek is too big for Barrick to pass it up. They already own, what, 20% of ng shares? How long until they buy the rest? $16.50 wasn't good enough for the shareholders, how much will they offer next time?