Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

NovaGold Resources Is Not Worth The Wait

This article is about NovaGold Resouces (NYSEMKT:NG). NovaGold Resources has a $1 billion market capitalization. It is currently in the permitting phase of brining its joint venture Donlin project--located in Alaska--into production. It also has a 50% stake in Galore Creek, which is a large copper project in British Columbia with some gold and silver, and $223 million in cash.

Seeing that the company only owns half of Donlin (Barrick Gold (NYSE:ABX) owns the rest), and seeing that production is many years away, one has to wonder why the company is so highly valued by the market.

The reason is fairly simple: once Donlin goes into production it will produce a whopping 1.5 million ounces of...

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