NG - NovaGold: Recent Capex Estimates Likely Too Conservative

• NovaGold is one of the worst-performing GDX names this year, down ~30% year-to-date vs. a 14% decline in the Gold Miners Index.
• The company holds 50% ownership of one of the largest gold development projects globally, with 50% ownership of Donlin Gold, an Alaskan project home to a 39 million-ounce resource base.
• However, while Donlin is nearly unrivaled in terms of potential annual production and scale, the costs to build the project are astronomical, and the recent capex estimate appears conservative.
• Given the possibility that Donlin does not head into production this decade if Barrick takes a pass for the time being, I believe Barrick is the better way to get exposure to the Donlin Gold project.

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