- 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.
For further details see:
NovaGold: Recent Capex Estimates Likely Too Conservative