Wednesday, July 14, 2010

NovaGold (AMEX:NG) Losses Three Times Worst Than Last Year

NovaGold (AMEX:NG) (TSE:NG) had a poor second quarter, with losses coming in at $15.8 million, over three times the $4.8 million in losses last year.

Revenue for the quarter also plunged, dropping to only $100,000, down from $300,000 in the same quarter last year. The company said that was due to declining gravel and land sales.

Losses came in at seven cents a diluted share for the latest quarter, compared to 3 cents a diluted share in the same quarter in 2009.

Near term the best project for NovaGold is its Donlin Creek property in Alaska, which it has a 50 percent share in with gold mining giant Barrick Gold Corp. (NYSE:ABX) (TSE:ABX).

That project should produce about one million ounces of gold on an annual basis over a 20-year period or more. It's now in the pre-permitting phase of development.

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