OLD--POTENTIAL TO PRODUCE

OLD--POTENTIAL TO PRODUCE

OLD--POTENTIAL TO PRODUCE

gold

Another nugget in the rough is NovaGold Resources (NG). Skinner has been buying the gold and copper miner for an average cost of 11.26, but the stock has fallen back to 8.29. "Late last year...it disclosed materially higher projected costs on British Columbia's Galore Creek mine, which it has since decided to halt pending a revised mine plan," he says. "But the resources are still in the ground, and don't forget that Barrick Gold made a hostile run at them awhile back at a substantially higher price," Skinner says. They should get to positive Ebit this year (estimates are for $15 million in '08), with all eyes trained on the upcoming cost estimates for both Galore and Alaska's Donlin Creek Mine, due out sometime in the next few months.

NovaGold: Banks Stymieing Mine Development
Rick Van Nieuwenhuyse, CEO of NovaGold, says the use of overly conservative metals-price assumptions by financiers is hampering the development of new projects. Plus, he sees gold at $1,200 by year-end.

Click here to watch the video.

NovaGold: Banks Stymieing Mine Development
Rick Van Nieuwenhuyse, CEO of NovaGold, says the use of overly conservative metals-price assumptions by financiers is hampering the development of new projects. Plus, he sees gold at $1,200 by year-end.

Click here to watch the video.

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Bear said it is downgrading NovaGold (NG) to a Peer Perform rating due to startling construction cost and schedule disclosure at Galore Creek.

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