NOVAGOLD RESOURCES (TORONTO:NG)
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MORE GOLD RESOURCES THAN ANY OTHER JUNIOR GOLD MINING COMPANY
Business Summary
NovaGold Resources Inc. is a precious metals company focused on the creation of value through the exploration and development of high quality mineral assets in North America.
NovaGold is now advancing five separate million-plus-ounce gold deposits in Alaska and
western Canada toward production.
With the recent acquisition of control of SpectrumGold Inc.(TSX:SGX), NovaGold now controls 25 million ounces of gold in five projects, including two of the largest undeveloped gold deposits in North America, Donlin Creek (25 Moz) and Galore Creek (5 Moz). NovaGold's net share of gold resources after all earn-ins is 14.4 million ounces of unhedged gold or 1/3 ounce of gold per share.
Since 1998, NovaGold has seen tremendous exploration success - averaging a discovery cost of $ 2 per ounce of gold resource. NovaGold has established itself as a rapidly growing exploration focused gold company with the leadership, vision, and financial strength required to rapidly progress into a quality mid-tier gold producer. NovaGold will continue to add significant shareholder value as it advances four separate multi-million ounce gold deposits to production decisions over the next several years at Donlin Creek, Rock Creek, Galore Creek and Nome Gold - that should enable the company to achieve an annual gold production level of 500,000 to 700,000 ounces per year.
NovaGold has no debt and is one of the largest, unhedged gold resource bases of any exploration stage gold company.
The company is well financed and consistently generates cash flow from its Nome, Alaska operations that contribute toward its exploration and development initiatives. The company anticipates continued exceptional growth in the future through its strategy of rapidly advancing its development stage projects up the value curve to production.
Recent News: NovaGold Receives Approval for American Stock Exchange Listing
NovaGold Resources Inc. has recently received approval of its application to list its common shares on the American Stock Exchange (AMEX). NovaGold's common shares commenced trading on the AMEX on December 2, 2003, under the symbol "NG".
In anticipation of NovaGold's new listing on the American Stock Exchange (AMEX) the company's
shares changed symbol on the Toronto Stock Exchange (TSX) as of Wednesday November 26, 2003. NovaGold's new trading symbol on the Toronto Stock Exchange for the company's common shares and common share purchase warrants are TSX:NG and TSX:NG.WT, the same as its new symbol on the AMEX.
Rick Van Nieuwenhuyse, President and Chief Executive Officer of NovaGold, stated: "NovaGold is pleased to complete its listing on the American Stock Exchange. We believe this is an important milestone for the company as we make the transition from a highly successfully exploration company to an exploration focused, quality North American gold producer.
This full US listing on the American Stock Exchange gives the company a much greater presence in the US market and makes the company significantly more accessible to US investors."
Fundamental Considerations
With 34.7 million ounces of measured, indicated and inferred gold resources, NovaGold's share is
25.07 ounces.
NovaGold has outstanding 61.9 million fully diluted shares or 160 USD worth of gold per share.
This is more than most gold companies have on their books.
For this reason alone, we see the potential for a significant appreciation in the share price.
Technical Considerations
While the up-trend of the gold-price is well established, the gold price may appear overextended in the short-term. Nevertheless, we view the risk of a severe correction as unlikely since it is only a matter of time before it jumps above the $ 400-level.
Our recommendation: Buy!
Peter Zihlmann
www.pzim.com
investment@pzim.com
forex@pzim.com
December 8, 2003
Disclosure: The author has not been paid to write this article, nor has he
received any other inducement to do so. The author is a shareholder in the
company and will benefit from any increase in the company's share price.
Disclaimer: The author's objective in writing this article is to invoke an
interest on the part of potential investors in this stock to the point where
they are encouraged to conduct their own further diligent research. Neither
the information, nor the opinions expressed should be construed as a
solicitation to buy or sell this stock. Investors are recommended to obtain
the advice of a qualified investment advisor before entering into any transactions
in the stock.
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