NovaGold Resources, Inc. (USA) (NG)

This strong gold producer successfully fended off a hostile takeover from Barrick Gold, and it's stock price faltered recently on the news, and because of a $200 million public offering to finance their Galore Creek project, which giant miner Teck Cominco has partnered to fund! The stock is a no-brainer under $18, and when gold finally breaks back out of its current respite.. this one's headed well into the 20s! :) And they're environmentally sensitive to boot!

NovaGold - Canadian based junior gold miner with operations and interests in Alaska and British Columbia. They are an exploration and development company. This is a great company, but there are so many issues:

The Good:
- Donlin Creek has one of the largest gold deposits in the world, 14.7M oz gold measured and indicated (M&I)
- Nome Operations has 1.8M oz gold M&I
- Galore Creek *** (issues, more in a minute) has 3.6M oz gold, 61.6M oz silver, 4.5B lb copper M&I
- They are probably the most environmentally responsible miner out there. They are building hydoelectric power plants, pipelining concentrate instead of trucking, etc.

The Bad:
- In November, operations at Galore Creek were suspended. This is a joint partnership with Teck Cominco. No news yet on when this will resume.
- So many headaches and false starts. They tried to raise money through an offering of senior controvertible notes. Then they changed the amount. Then they went going to offer. Then they were. Then the amount changed again.... This was painful to watch back in March.

Where we are now:
A lot of investors have gotten tired waiting for this company to make up its mind. In April the stock price bottomed around $7. But it has finally started climbing back up, and I believe this is indicative of the future. There is so much potential in their mines, even just considering Donlin Creek, Nome and Rock Creek. With gold back on the rise, NG should start digging itself out of its hole. I have been cost averaging on the way down and now am in at a cost basis of $8.40. I think NG will be heading up nicely from here.

Gold and Silver - Relationship to the USD
Gold and Silver are money. Most people think they are commodities, which is not inaccurate. To some degree they are; Gold is a reasonably useful industrial material, and silver is a highly useful industrial material. But gold and silver's value is because they have represented wealth for so long. They are money, and they have value because they are non-dilutive.

Why is Gold and Silver going up? The question is incomplete. The complete question is why is gold and silver going up relative to the US Dollar. Remember, gold and silver are money. And like any form of money it must be valued relative to other currencies. Gold and Silver are going to continue their rise (in terms of USD) because of the extremely inflationary actions of the FED and the current government (and most likely the next government as well). It is a very sad and very unfortunate fact that the USD is being debased and devalued by the current government's fiscal policy. The US Dollar Index is on a very steady decline. There is no reason for it to rise in the current environment. The FED is printing money and trying to inflate the US out of its current economic dilemma. In order to make any kind of dent in inflation The FED has to take a much tougher stance. ... Their most recent "tough talk" on inflation... "We may not cut interest rates next meeting, and it might stay at 2% for the next several sessions"... Wow, that is the FED being "hawkish" on inflation. Meanwhile liquidity is being pumped into the system and the dollar is being devalued.

The recent gold and silver correction has provided a good buy-in opportunity. It is already on it's way out of the correction, having made up >50% of its retracement already. It is not too late yet. Once gold goes back over $1000 again, there is nothing on the horizon to hold it back. The FED has made it clear that dealing with inflation takes second seat to proping up the financial system. Unless something drastic (such as a major rise in interest rates) occurs, gold and silver will keep rising. And even with a major interest rate rise, that would only delay the upward progress. The US is still accumulating bad debt, and is still backing those loans by rapidly depreciating assets. Until there is a major recession and house prices come down substantially from where they are AND the US economy transitions from consumption based to production based, the USD will continue its death spiral. Gold and Silver will continue to rise.

stock already was under 50 cents this year. Why are people rejecting reality again?

with no real enterprize value,a negative operating margin,negative return on equity,negative Net Income Avl to Commo and seems leveraged to the hilt. this is a train wreck.

Now that the bankrupcies risk have been removed (look at the private placement news), I believe this is now a very good value play to invest in the gold sector.

Assuming a market cap of around 250Millions (accounting for the 75M private placement) and that they have about 22.8M ounces of gold equivalent resource, and 5.9M oz of inferred resources (assuming they can turn out the inferred resource into measured and indicated), you basically get the stock for 250M/28.7M = 8.71$/oz of gold.

This is not even counting the reserve value they have in copper (4.5B lbs of measure and indicated reserved)...

In comparaison to Seabridge gold, this stock looks cheaper (look at the fool articles:
"Gold Selling for $10 an Ounce!")

They have tremedous prospects in their mines and own a few of them. I have read the specifics but don't feel like typing them. NovaGold.com and look under their news section, it gives good insight.

Gold and silver have taken a sudden drop during the past week. Many speculators are panicing and claiming that this is the end of the "commodity bubble". I don't think so. If you look at the fundamental reason behind the last 6 months rise in precious metals, you have to ask yourself....has anything changed? I don't think so. The Fed continues to pump liquidity into the market, the interest rate continues to decline, inflation continues to increase and the dollar continues to fall. That being said....if due to demand decreases oil drops sharply from here...there is a possibility that precious metals will follow. Precious metals will experience quite a bit of volatility and the gyrations may be tough to handle but I think due to the fundamentals that I mentioned above that a year from now precious metals will be much higher.

SMALL GOLD MINERS IN POSITION TO RISE QUICKLY WITH THE PRICE OF GOLD GOING UP
USE YOUR MONEY FOR THESE AS THEY WERTE WAY DOWN
OR TRY YOUR BANK CD S 2.5 % FOR A YRS USE OF YOUR MONEY

gold you know. . . history lessons

Hurray for Gold!!! Hurray for Silver!!! Hurray for Oil!!! Hurray for Base Metals!!! Down with $US!!! Down with US Banks!!! Up with US stock market nominal basis!!! Down with US stock market real basis!!! Down with US Houses!!! Down with Citigroup!!! Down with US Economy!!! and DOWN WITH INFIDELS!!!!!!!!

Whoever shorts metals company because of no revenue is stupid!!! Why trade good metals for bad $US just to report revenue!!! A company can have no revenue, just sleep, but if the price of their metals go up, market cap go up! All metals miners should stop producing, have no worthless $US revenues, and wait until supply goes down until Gold hits $5000 then to sell their metals!!!

Now that the Chinese stock market is in tune again with New York and that it is going down, oil and gold won't be able to keep moving higher.

Should exceed 15 dollars within next 2 years...

We are in a commodities Bull market and NG looks underpriced to me. Gold related stocks could be volatile in the short-term, but I expect the trend to continue going up up up over the long run.

Long run winner. Fantastic resourse base. Has to focus on getting production to cashflow development of assets. Seems like market has lost patience in floating the working capital for the company. They could be bought out given the markets reaction to management decisions. They should have gone to market for more money well before cancelling Galore Creek.

Gold bubble

NovaGold can just sit back and relax. Don't rush into mining just yet. Just wait for gold to go to $2500/oz then sell their gold mines for big bucks...

This stock is a great choice. By evaluating this company and looking at their growth pattern and their marketing strategies this is a sure fire stock to pick. This company has great leadership with the ability to think outside the box. With the possibility of some future acquisitions this has all the ingredients for wonderful success, short term and long term both. Keep up and watch out. With this outlook ahead, we should also look to the left and right (aka their competion) for huge leaps as well. If you have a little on the side I say diversify within the sector and buy from all the competetors too for they also are looking very solid. That is my pick and I am sticking to it.

The Barrick takeover didn't go over so well and I feel that this company is still undervalued by at least 30%. Are there difficulties with some of their projects, yes but I believe that they will be resolved either from within or by becoming a takeover target once again. Love the management and believe that they really look out for their shareholders.

Although they have excellent resources, I am barely bullish on NG. They shuttered their large BC property concentrating on Alaska, yet I recognize their prioritization due to less liquidity today. Given time, NG will either do well or be bought out by a major PM'er. For my $$, I'm far more bullish on NAK and their management doesn't seem to fiddle faddle their decisions as has NG. Some of their past ones from NovaGold management in my opinion have been whoppers for shareholders and for me to bid deeply, they'll have to "get it" or I will lose more faith in them.