Nova – Where do we go from here? Saturday, December 15, 2007
Posted by croatz in capital markets, finance.Tags: capital markets, gold, gold stocks, novagold
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Although Novagold’s loss was the result of a company-specific event, it is not alone in the industry in experiencing these risks. Rapidly rising mining costs are an industry-wide risk, especially when coupled with lenders insistence on using drastically lower commodity prices to assess the economic viability of new mines. Another industry-wide risk that has been increasing is the geo-political factor that many mining firms face from operating in volatile regions around the world. As Novagold operates mines in countries with strong legal and political systems they have dramatically lower risks in these areas versus the industry as a whole.
The Good: Lawsuits with Barrick settled – Novagold can move forward on the important Donlin Creek project
Donlin Creek – Considerable Gold Reserves, Exploration Stage
Geo-Political Risk: Minimal, Nationalization is not a concern
The Ugly: Novagold is down another 16% to $7.98 since dropping from $20.24 to $9.48 in a single day
Sources:
Details of Novagold Barrick Settlement
