NOVAGOLD (NG) Q3 2026: Increased Ownership in Donlin Gold — Positive Long-Term Outlook

In the third quarter of 2026, NOVAGOLD reported a net loss of ($36.0) million, or ($0.08) per share, reflecting an increase in operational cash expenditures of $28.1 million. This represents a significant increase in expenditures compared to the prior year, driven primarily by ongoing Bankable Feasibility Study (BFS) activities and elevated general and administrative costs. Despite the loss, the company ended the quarter with approximately $343.4 million in cash and term deposits, indicating a robust financial position to advance its key asset, the Donlin Gold project.

Key Financial Metrics:

• Net Loss: ($36.0) million
• Earnings Per Share (EPS): ($0.08)
• Operational Cash Expenditures: $28.1 million
  • Donlin Gold Project Funding: $24.8 million
  • Corporate General and Administrative Costs: $3.3 million
• Cash and Term Deposits: $343.4 million

Analyst View:

This quarter can be viewed as a positive step for shareholders in the long term, despite the reported loss. The increase in ownership of the Donlin Gold project from 60% to 100% through an all-share transaction with Paulson Advisers LLC is a transformative move that positions NOVAGOLD as a more significant player in the U.S. gold development sector. The anticipated completion of this transaction by year-end 2026 is expected to enhance shareholder value through increased net asset value per share and gold reserves.

Operational Highlights:

• Cash Position: NOVAGOLD's cash resources are sufficient to cover operational costs and advance the Donlin Gold BFS, which is on track for completion in 2027.
• Increased Expenditures: The operational cash expenditures of $28.1 million reflect a strategic investment in the Donlin Gold project, which is expected to yield substantial returns in the future.
• Financial Advisors: The appointment of Endeavour Financial and Macquarie Capital as financial advisors will support the development of the Donlin Gold project and assist in securing project financing.

Dividend and Guidance Changes:

While there were no dividends declared this quarter, NOVAGOLD has increased its fiscal 2026 operating expenditure guidance by $11.5 million to approximately $110.0 million. This increase is primarily due to higher corporate general and administrative costs associated with the ongoing Transactions.

Forward Catalysts:

Investors should closely monitor the upcoming Special Meeting of Shareholders scheduled for November 3, 2026, where the approval of the acquisition of Paulson's 40% interest in Donlin Gold will be voted on. Successful completion of this transaction will be a significant catalyst for NOVAGOLD, potentially leading to enhanced operational efficiencies and increased production metrics. Additionally, the ongoing BFS activities and the anticipated completion in 2027 will be critical for the project's advancement and future funding strategies.

In summary, while the current quarter reflects a loss, the strategic moves being made by NOVAGOLD, particularly the acquisition of full ownership of the Donlin Gold project, set a positive trajectory for the company and its shareholders in the long term.

Note: The following tables are in thousands.

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