Junior gold miner NovaGold Resources Inc. (NYSEMKT: NG) is down about -24% in early afternoon trading following a presentation today during the conference call webcast from Barrick Gold Corp. (NYSE: ABX). Barrick is having its own problems following a lackluster quarter, but NovaGold is getting hit much harder.
In its presentation Barrick said its joint Donlin Gold project with NovaGold does “not currently meet our investment criteria; we woul;d not make a positive decision to construct [this project] at this time.” Barrick does say that the Donlin project is “valuable long-term” opportunity, but that’s little comfort for NovaGold.
We noted in our coverage of Barrick’s earnings release this morning that the company’s new CEO plans to make returns drive production, not the other way round. Earlier this month, the Donlin board approved an updated feasibility study of the Donlin project and authorized the filing of permit applications. Whether those plans will proceed now is not clear.
Barrick shares are down more than -6% at $31.71 after posting a new low this morning of $31.00. The previous range was $32.88-$55.95.
NovaGold shares are down -23.8% at $4.10 after posting a new 52-week low of $3.62 earlier today. The previous range was $4.98-$11.77.
Paul Ausick
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
