Novagold Resources (NYSEAMERICAN:NG) reported a wider fiscal 2026 third-quarter loss as spending increased for the Donlin Gold project’s bankable feasibility study and for legal and professional work tied to its proposed acquisition of the remaining interest in the project.
The company reported a net loss of $36 million, or $0.08 per share, for the quarter. The loss increased by $20.4 million from the comparable prior-year period, which Chief Financial Officer Peter Adamek attributed primarily to higher Donlin Gold expenditures and increased corporate general and administrative costs. Higher interest income partly offset those increases.
Cash Position and Spending Outlook
NovaGold ended the quarter with $343.4 million in cash and term deposits, down $26.8 million during the period. The decline reflected $24.8 million in funding for Donlin Gold and $9.8 million in corporate G&A costs, partly offset by $3.8 million in interest income and $1.2 million from the sale of marketable securities.
Adamek said the company believes its treasury is sufficient to complete the Donlin Gold bankable feasibility study in 2027, exercise an option to prepay a Barrick promissory note during the current quarter, and cover corporate G&A costs for at least the next 12 months.
The company raised its 2026 corporate G&A guidance by $11.5 million to $31.2 million to support completion of the proposed Donlin Gold transaction. Adamek said legal and professional costs are expected to remain elevated through the rest of fiscal 2026 and into early 2027, until the transaction is completed.
Plan to Consolidate Donlin Gold Ownership
President and CEO Greg Lang said NovaGold entered definitive agreements on July 21 to create a new U.S.-domiciled parent company, New NovaGold, which is expected to be listed on the New York Stock Exchange through a one-for-one share exchange.
Under the proposed arrangement, NovaGold Chairman Thomas Kaplan and investor John Paulson would become co-chairs of New NovaGold. Paulson would hold approximately 40% of New NovaGold, including his existing NovaGold ownership, while his voting interest would be capped at 19.99%.
Once completed, New NovaGold would acquire Paulson’s 40% interest in Donlin Gold in an all-share transaction and would own 100% of the project. NovaGold and Paulson jointly acquired Barrick’s 50% interest in Donlin Gold in June 2025, leaving NovaGold with a 60% interest and Paulson with 40%.
The transaction requires approval from two-thirds of shareholders, as well as court, regulatory, listing and customary closing conditions. A special shareholder meeting is scheduled for Nov. 3, 2026, with a voting deadline of Oct. 30. The company expects the transaction to close by year-end.
Lang said the combined company is expected to have an approximately $5 billion market capitalization and that the consolidation would add about 16 million ounces of measured and indicated resources, including 13 million ounces of proven and probable reserves, to NovaGold’s attributable position. The company said the added interest would increase attributable annual production by more than 520,000 ounces during the mine’s first decade.
Donlin Feasibility Study, Permitting and Community Engagement
NovaGold said the Donlin Gold bankable feasibility study remains on track for completion in 2027. Fluor is leading integration of major work packages and coordinating with WSP, Worley and Hatch, while geotechnical work at sites including Jungjuk Port and the access-road corridor was expected to wrap up during the fall.
The company has expanded its internal workforce from 35 to more than 70 employees in Anchorage and Vancouver since the start of 2026 as it prepares for a final investment decision. NovaGold also appointed Endeavour Financial and Macquarie Capital as financial advisers to evaluate funding alternatives, including conventional project finance and potential sovereign wealth fund support.
Lang said Donlin Gold is projected to produce about 1.3 million ounces annually in its first 10 years and more than 1 million ounces annually over a 27-year mine life. The project hosts approximately 40 million ounces of measured and indicated resources at an average grade of about 2.25 grams per ton, according to the company.
All project permits remain in place, NovaGold said. The Army Corps of Engineers and Bureau of Land Management published a supplemental environmental impact statement on Sept. 23 analyzing a larger theoretical tailings release. Public comments are open through Oct. 23, and a final environmental impact statement is anticipated in April 2027. The company also expects detailed design packages for seven dams by late 2026 or early 2027, with dam safety certificates anticipated in 2028.
During the quarter, Donlin Gold conducted village visits with landowner Calista Corp., including a meeting in Crooked Creek, and continued work with the Subsistence Community Advisory Committee. It also began outreach along the proposed pipeline corridor to more than 190 individuals and entities. Environmental work included completion of the 2026 George River Salmon Monitoring Program with the Native Village of Napaimute, which sampled more than 7,000 fish.
In the question-and-answer session, Kaplan said the project has received bipartisan political support in Alaska and noted that the company already holds the permits needed to advance development. He also said the company sees potential financing interest from countries that have committed investment capital in the U.S. Kaplan separately expressed his personal view that gold could reach $5,000 per ounce and move higher over a longer-term bull market.
About Novagold Resources (NYSEAMERICAN:NG)
Novagold Resources Inc is a Canada-based precious metals exploration and development company focused on advancing the Donlin Gold project in southwest Alaska. The project is held through Donlin Gold LLC, which is owned equally by Novagold and Barrick Gold Corporation. Donlin Gold is one of the largest undeveloped gold deposits in the world and is located on lands owned by the Calista Corporation and The Kuskokwim Corporation.
Novagold does not currently operate producing mines. Its primary activities include project evaluation, permitting, technical studies, exploration, and community and stakeholder engagement related to Donlin Gold.
