Nova Gold Swings to Profit - Still Time to Get In
NovaGold Resources Swings to 1Q Profit
Monday April 14, 5:43 pm ET Halting Construction at 1 Site, Stock Sale Lifts NovaGold Resources to 1st-Quarter Profit
VANCOUVER, British Columbia (AP) -- NovaGold Resources Inc. said Monday it swung to a profit in its fiscal 2008 first quarter as it sold shares in another gold mining company and halted construction at a Canadian mining site.
In the three months ended Feb. 29, NovaGold earned 28 million Canadian ($28.6 million), or 26 Canadian cents (26.6 cents) per share, compared to a loss in the year-earlier period of 4.9 million Canadian, or 5 cents per share.
The increase followed a 15.3 million Canadian ($15.6 million) gain from selling shares in Denver-based US Gold Corp. and a reduction in the estimated costs for suspending construction at Galore Creek, a 50-50 joint venture with Teck Cominco Ltd. in northwestern British Columbia.
Analysts polled by Thomson Financial expected, on average, the company to lose 1 cent per share in the quarter.
Revenue for the three-month period climbed to 1.7 million Canadian ($1.7 million), from 1.1 million Canadian in the year ago. Most of the increase was from land sales.
NovaGold is a development-stage mining company that holds interests in copper and gold resources in Canada and Alaska.