thomast2

How Much Is NovaGold Worth?

Thank you all for your comments.

Marco, a large property like DC needs to do a DCF analysis to put a value to such property. Reserves, even under ground and yet to be digged out, still have a value, and in this case, a good value.

Saba, you are correct from pure math standpoint. But you need to look their M&I reserve figure, which is increasing by the way once the inferred are qualified to be M&I. Even you don't count inferred right now, it is still 1.8 mil, with 0.1 mil per year, it is 18 years. So it is more likely 15 than 10 years of mining life. At the same time, I expect the output will increase which is typical for mining, this is why I said 10-15 instead of 18 years of life since you want to get them out more quickly which will realize a higher net present value. By putting alll these into your DCF calculation, I am sure you will get roughly $500 mil.

Thanks again to all.