Novagold Resources Inc. (NG) Stock Analysis

Novagold Resources Inc. advanced an 18,454-meter drill program at the Donlin Gold project in southwestern Alaska during 2025, targeting grid drilling, in-pit exploration, and geotechnical objectives as inputs for a Bankable Feasibility Study (BFS) with a prime contractor expected to be selected in the first quarter of 2026. The average daily London gold price in 2025 was $3,436 per ounce (high $4,482), up from $2,387 in 2024. Total initial capital cost for the project stands at $9,233 million on a 100% basis, with sustaining capital of $2,325 million; the company employs 12 full-time staff and has no mining revenue.

Novagold holds a 60% economic interest in Donlin Gold LLC—and a 50% voting interest after a contractual governance reduction—with the remaining 40% economic interest held by Paulson Advantage Plus Master Ltd. and Paulson Partners LP, which assumed Barrick Mining Corporation's stake on June 3, 2025. Donlin Gold's board approved a fiscal 2026 budget of $131.4 million on a 100% basis ($78.8 million Novagold's share), covering the BFS, permit maintenance, community relations, and exploration. Revenue, if any, will come from gold sales once the project reaches production—a timeline dependent on completing the BFS, securing project financing estimated at $9,233 million initial capex, obtaining all required permits, and constructing mine infrastructure in a remote environment accessible only by seasonal barge and small aircraft. The project would be the largest single gold mine in the United States if developed, competing for capital and engineering talent against well-capitalized major and mid-tier mining companies.