CA - NovaGold: Interesting Prospects And A Dip On The Way
2024-07-15 07:39:18 ET
Summary
- Shares rose 45% since the last recommendation due to safe-haven gold demand against the risk of economic slowdown and geopolitical tensions. As well, the Fed rate cut hopes that helped gold.
- Donlin Gold Project in Alaska has growth potential and is financially robust as long-term gold prices are expected to be higher, with the project continuing to reduce the risk.
- The share price is not expensive because growth prospects will sooner or later get a boost with the Fed's pivot, but there is the possibility of a share price dip.
- NovaGold Resources Inc. is recommended "Hold" rating.
A “Hold” rating for NovaGold Resources Inc.
This analysis recommends another rating of “Hold” following the same rating assigned with the previous analysis dated April 22, 2024, to NovaGold Resources Inc. ( NG ) shares. NovaGold Resources Inc. - hereinafter simply NovaGold - is a Vancouver, Canada-based company that has a major project to develop into a large gold mine in the Kuskokwim region of southwest Alaska.