Street Calls of the Week
Introduction & Market Context
NOVAGOLD Resources Inc (NYSE AMERICAN:NG) presented its third quarter 2025 results and Donlin Gold project update on October 1, 2025, highlighting the transformative impact of its strategic partnership with Paulson Advisers. The company’s stock closed at $8.80, up 9.55% on the day, continuing its strong performance following the April 2025 transaction that has seen shares rise over 155% since the announcement.
The presentation took place against a backdrop of surging gold prices, which reached $3,749/oz by September 2025, creating a favorable environment for gold development projects. NOVAGOLD emphasized that the current market conditions represent "the foothills of the bull market" for gold, with significant upside potential for well-positioned gold equities.
Strategic Partnership Highlights
The most significant development for NOVAGOLD in 2025 has been the $1 billion acquisition of Barrick’s stake in the Donlin Gold project, creating a new 60/40 ownership structure between NOVAGOLD and Paulson Advisers. This transaction, announced on April 22, 2025, has dramatically altered the company’s trajectory and market perception.
As shown in the following chart of NOVAGOLD’s share price performance since the transaction announcement:
The partnership with Paulson Advisers brings significant gold sector expertise to NOVAGOLD. The presentation highlighted Paulson’s successful track record in gold investments, including the turnaround of Detour Gold (acquired by Kirkland Lake for $3.7 billion) and ongoing support of Perpetua Resources, which has raised over $2.2 billion in financing since early 2024.
NOVAGOLD raised $286 million through an upsized public offering and concurrent private placement following the transaction announcement, strengthening its financial position to advance the Donlin Gold project.
Financial Performance
NOVAGOLD reported a net loss of $15.6 million for Q3 2025, compared to $10.7 million in Q3 2024. For the nine months ended August 31, 2025, the net loss increased to $79.0 million from $34.8 million in the prior year period, primarily due to a $39.6 million warrant expense related to the financing.
The company’s operating performance shows increased spending on both general and administrative expenses and Donlin Gold funding:
The company’s cash flow statement reflects the significant investment in Donlin Gold ($210.1 million) following the acquisition of Barrick’s stake, offset by the proceeds from equity raising:
NOVAGOLD maintains a strong treasury position of $125.2 million as of August 31, 2025, which it believes is sufficient to fund its share of the planned activities. The company has revised its 2025 guidance upward, with total expected spending of $42.0 million compared to the initial guidance of $37.5 million.
Project Development Progress
During Q3 2025, NOVAGOLD completed an 18,454-meter drill program at Donlin Gold, focusing on grid drilling for future mine planning, in-pit exploration, and geotechnical drilling. The program employed over 80 personnel, including locals from 22 Yukon-Kuskokwim villages.
The drilling results revealed consistent mineralization across multiple zones, with standout high-grade intervals including 7.35 meters at 23.49 g/t gold. These results provide critical data for engineering, mine planning, and resource modeling.
As shown in the following table of top drill results:
On the permitting front, NOVAGOLD reported that key federal permits for Donlin Gold are in hand, while state permitting activities continue to progress. In June 2025, the Federal Court issued an Order on remedy that rejected a request for permits to be revoked, instead remanding to federal agencies to conduct a narrow supplemental analysis of potential environmental impacts.
Path to Production
NOVAGOLD outlined its path to production for Donlin Gold, with several key milestones ahead. The company plans to engage a top-tier firm for a Bankable Feasibility Study (BFS) in Q4 2025, with completion expected around 2027. Construction is projected to take place from approximately 2027 to 2030, with commercial operations beginning around 2031.
The following timeline illustrates the company’s development plan:
The company emphasized Donlin Gold’s potential to become America’s largest gold mine, with projected annual production of 1.13 million ounces over a 27-year mine life, increasing to 1.40 million ounces during the first ten years of operation.
Project Economics & Competitive Positioning
NOVAGOLD highlighted Donlin Gold’s leverage to gold prices, with Net Present Value (NPV) estimates showing significant upside at current and projected gold prices. At a gold price of $3,500/oz, the project’s NPV at a 5% discount rate would reach $19.1 billion.
As shown in the following chart of Donlin Gold’s NPV sensitivity to gold prices:
The company emphasized Donlin Gold’s high-grade nature compared to global averages. With an average grade of 2.24 g/t gold versus the global average of 1.06 g/t, Donlin Gold is positioned to be one of the highest-grade gold producers in the industry.
NOVAGOLD also highlighted the unique attributes that differentiate Donlin Gold from other gold development projects:
Forward-Looking Statements
Looking ahead, NOVAGOLD and its partner Paulson Advisers are focused on advancing the Donlin Gold project toward production. The immediate priority is to engage a top-tier firm for the Bankable Feasibility Study in Q4 2025, while continuing to work through the remaining state permitting requirements.
The company believes it is well-positioned to benefit from the current gold bull market, with Dr. Thomas Kaplan, NOVAGOLD’s Chairman, predicting continued strength in gold prices. The presentation included his historical gold price predictions, many of which have proven accurate over time.
NOVAGOLD emphasized its commitment to environmental, social, and governance (ESG) principles, reporting zero hazardous material spills to water, zero fatalities, and continued engagement with local communities. The company has finalized an additional Shared Values Statement with a village in the Yukon-Kuskokwim region near the project, increasing the total to 19.
With federal permits in hand, a clear development timeline, and a strengthened financial position following the Paulson partnership, NOVAGOLD is positioning Donlin Gold to become a cornerstone asset in the U.S. gold mining industry, though investors should note that commercial production remains approximately six years away.
Full presentation:
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