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.