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Novagold says balance sheet strong after Q1 loss

Stockhouse Editorial
0 Comments| April 10, 2013

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Novagold Resources Inc. (TSX: T.NG, Stock Forum) said Wednesday it lost $13.8 million in its latest quarter as it worked to develop its Donlin Gold project in Alaska.

The company said the loss amounted to five cents per share for the quarter ended Feb. 28 compared with a profit of $16.8 million or seven cents per share a year ago when it benefited from a gain on derivatives, the company said in a press release.

The Donlin Gold project is jointly owned with Barrick Gold Corp.’s (TSX: T.ABX, Stock Forum) (NYSE: ABX, Stock Forum).

The company said the project has moved to the preliminary draft environmental impact statement after receiving positive and constructive reviews.

In its outlook, the company said it expects a draft environmental impact statement in 2014.

In addition to Donlin Gold, Novagold is developing the Galore Creek project through a 50-50 partnership with Teck Resources Ltd. (TSX: T.TCK.A, Stock Forum) (TSK: T.TCK.B, Stock Forum) (NYSE: TCK, Stock Forum).

On Wednesday, NovaGold shares fell 7.6% to $3.16 leaving the company with a market cap of $1 billion, based on 316.6 million shares outstanding. The 52-week range is $7.17 and $3.22.
(with files from The Canadian Press).



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