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Novagold Resources Inc New (TSE:NG)
TSX:NG
RESEARCH TOOLSreports
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Novagold Resources New
(TSX:NG)
31Underperform
Novagold Resources New (NG) vs. S&P 500 (SPY)
Market Cap
$1.58B
Dividend YieldN/A
Average Volume (3M)269.31K
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue GrowthN/A
EPS Growth1.74%
CountryCA
Employees13
SectorBasic Materials
Sector Strength65
IndustryMining
Share Statistics
EPS (TTM)-0.19
Shares Outstanding334,646,580
10 Day Avg. Volume256,984
30 Day Avg. Volume269,305
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-138.80
P/FCF Ratio175.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$6.59Price Target Upside34.40% Upside
Rating ConsensusHold
Number of Analyst Covering2
Novagold Resources New Business Overview & Revenue Model
Company DescriptionNovagold Resources New (NG) is a mineral exploration company primarily focused on the development of gold mining projects. The company operates in the mining sector and is engaged in the exploration and development of mineral properties, with its flagship project being the Donlin Gold project in Alaska. Novagold aims to provide investors with high-quality, long-term investment opportunities through its strategic focus on large-scale gold deposits in stable jurisdictions.
How the Company Makes MoneyNovagold Resources New makes money primarily through the development and eventual production of gold from its mining projects. The company's revenue model is centered around its flagship Donlin Gold project, which is a joint venture with Barrick Gold Corporation. Upon the development and commencement of production, Novagold will generate revenue through the sale of gold extracted from this project. Additionally, the company may receive income from selling its stakes in mining projects or entering into strategic partnerships that enhance the value of its assets. Key factors contributing to its earnings include the successful advancement of its projects, favorable gold market conditions, and maintaining strong partnerships such as the one with Barrick Gold.
Novagold Resources New Financial Statement Overview
Summary
The company is facing severe financial challenges with no revenue generation, continued operational losses, and a highly leveraged balance sheet. Negative equity and cash flow issues indicate significant financial distress, posing substantial risks to sustainability and future growth.Income Statement
The company has reported no revenue over the years, indicating a lack of operational income. Consistent negative EBIT and net income reflect ongoing operational losses without any sign of profitability. The company shows deteriorating financial health with increasing losses, as evidenced by the negative gross profit and escalating EBIT and net income losses.15
Very Negative
Balance Sheet
The balance sheet reveals a concerning financial position with negative stockholders' equity in the latest period, indicating liabilities surpass assets. High total debt relative to negative equity signifies significant financial risk. The negative equity ratio and worsening debt-to-equity ratio underscore a highly leveraged and unstable financial standing.10
Very Negative
Cash Flow
Cash flow statements show persistent negative operating cash flow, highlighting challenges in generating cash from operations. The free cash flow is also negative, indicating insufficient cash to cover capital expenditures and operational needs. The company's cash position is deteriorating, suggesting financial instability and potential liquidity issues.20
Very Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| -22.00K | 0.00 | -7.00K | -7.00K | -7.00K | -15.00K | EBIT |
| -37.86M | -21.78M | -48.27M | -36.84M | -33.24M | -26.81M | EBITDA |
| -29.75M | -21.77M | -45.83M | -33.62M | -28.16M | -19.31M | Net Income Common Stockholders |
| -45.62M | -46.80M | -53.34M | -40.54M | -33.56M | -27.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 101.22M | 125.75M | 125.88M | 169.12M | 121.91M | 148.55M | Total Assets |
| 109.75M | 133.29M | 159.19M | 198.85M | 224.44M | 245.84M | Total Debt |
| 152.45M | 137.55M | 124.63M | 116.13M | 110.41M | 103.79M | Net Debt |
| 110.23M | 91.80M | 60.75M | 25.01M | 49.51M | 36.24M | Total Liabilities |
| 157.17M | 141.51M | 129.29M | 120.57M | 113.71M | 107.88M | Stockholders Equity |
| -47.42M | -8.22M | 29.90M | 78.28M | 110.73M | 137.95M |
| Cash Flow | Free Cash Flow | ||||
| -12.64M | -7.79M | -12.37M | -9.66M | -10.02M | -6.13M | Operating Cash Flow |
| -12.64M | -7.79M | -12.37M | -9.86M | -10.02M | -6.13M | Investing Cash Flow |
| 9.36M | -10.33M | -12.36M | 40.39M | 4.72M | 53.86M | Financing Cash Flow |
| -174.00K | 0.00 | -2.12M | -731.00K | -1.65M | -1.20M |
Novagold Resources New Technical Analysis
Positive
4.90
Price Trends
4.63
Positive
4.77
Positive
5.12
Negative
Market Momentum
0.08
Negative
56.40
Neutral
47.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NG, the sentiment is Positive. The current price of 4.9 is above the 20-day moving average (MA) of 4.63, above the 50-day MA of 4.63, and below the 200-day MA of 5.12, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 47.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NG.
Novagold Resources New Risk Analysis
Novagold Resources New disclosed 29 risk factors in its most recent earnings report. Novagold Resources New reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Novagold Resources New Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $76.11B | 29.13 | 9.42% | 1.51% | 26.99% | -6.63% | |
75 Outperform | $21.10B | 16.23 | 14.66% | 1.00% | 16.53% | 206.89% | |
73 Outperform | $47.65B | 16.48 | 9.00% | 2.10% | 15.40% | 72.49% | |
47 Neutral | $2.68B | -3.93 | -26.14% | 3.26% | 2.31% | -28.79% | |
38 Underperform | $1.74B | ― | -1.59% | ― | ― | 63.45% | |
31 Underperform | $1.58B | ― | 96.21% | ― | ― | 1.74% |
* Basic Materials Sector Average
Performance Comparison
TSE:NG
Novagold Resources New
4.87
1.23
33.79%
TSE:SEA
Seabridge Gold
17.25
-0.70
-3.90%
TSE:K
Kinross Gold
17.64
10.05
132.35%
TSE:ABX
Barrick Gold
27.59
6.93
33.56%
TSE:AEM
Agnico Eagle
150.88
76.61
103.14%
Novagold Resources New Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: 6.52% | Next Earnings Date: Apr 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted the strong potential and progress of the Donlin Gold project, with significant exploration and financial strengths. However, legal challenges, financial losses, and uncertainties regarding construction timelines pose notable concerns.Highlights
Donlin Gold Project's Tier 1 Status
With 39 million ounces at a grade of 2.25 grams per tonne, more than double the industry average, and a projected mine life of nearly 3 decades, Donlin promises long-term, stable, and low-cost operating conditions.
Strong Partnerships and Permitting Success
Donlin Gold has secured all necessary federal permits and the majority of state permits, with strong partnerships with Calista and TKC reinforcing its social license.
Significant Exploration Potential
Donlin's existing resource occupies just 5% of its land package, highlighting the opportunity to increase ounces and extend the mine's life through further exploration.
Financial and Operational Milestones
Completed metallurgical test work and a pilot plant in Ontario, Canada, and ongoing technical work will serve as inputs into an updated feasibility study.
Strong Treasury and Budget for 2025
NOVAGOLD's treasury remains strong with $101.2 million in cash and term deposits as of November 30, with a 2025 budget of $43 million approved for advancing the Donlin Gold project.
Lowlights
Legal Challenges
The company continues to support agencies in maintaining and defending permits against legal challenges, indicating ongoing litigation in state and federal courts.
Decreased Financial Performance
Reported a loss of $45.6 million for the 2024 fiscal year with earnings per share of negative $0.14, reflecting expenditures in line with budget but still a notable financial loss.
Challenges in Advancing to Construction
Ongoing work is necessary to lay the foundation for a future feasibility study and a construction decision, pointing towards a timeline that remains uncertain.
Company Guidance
During the earnings call for Q4 2024, Greg Lang, President and CEO of NOVAGOLD, provided guidance on the Donlin Gold project, emphasizing its Tier 1 asset status with 39 million ounces at a grade of 2.25 grams per tonne, more than double the industry average. The project has a projected mine life of nearly three decades and is positioned as one of the industry's leading producers. Key activities in 2024 included technical work to update cost estimates, resource modeling, and extensive community engagement. Financially, NOVAGOLD reported a 2024 fiscal year loss of $45.6 million, with a cash and term deposits balance of $101.2 million as of November 30. The Board approved a 2025 budget of $43 million, focusing on drilling, mine planning, and permit defense. The ongoing efforts aim to enhance the project's value, with significant exploration potential and a strong social license through partnerships with Calista and TKC.Novagold Resources New Corporate Events
NOVAGOLD to Announce 2024 Year-End Results and Donlin Gold Update
Jan 9, 2025
NOVAGOLD RESOURCES INC. has announced the release of its 2024 year-end report, scheduled for January 23, 2025, prior to the market opening. The announcement will be followed by a conference call and video webcast where the company’s executives will discuss the financial results and provide an update on the Donlin Gold project. This event is important for stakeholders as it will give insights into the company’s financial health and project developments, potentially influencing market perceptions and investment decisions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.