Canaccord initiates NovaGold stock with buy on Donlin Gold project

Investing.com - Canaccord Genuity initiated coverage on NovaGold Resources Inc. (NYSE:NG) with a buy rating and a price target of $13.00 on Friday. The stock currently trades at $7.73, representing significant upside potential. Despite a remarkable 149% gain over the past year, analysis indicates the stock appears overvalued at current levels based on its Fair Value assessment.

NovaGold’s flagship asset is a 60% interest in the Donlin Gold project, a large-scale gold project located in southwestern Alaska. Paulson Advisers LLC owns the remaining 40%.

The ownership structure resulted after NovaGold and Paulson jointly acquired Barrick Mining’s 50% interest in the project in 2025, with NovaGold increasing its interest to 60% from 50% and Paulson acquiring the remaining 40%. The project is governed on a 50/50 basis despite the 60/40 ownership split.

The project is permitted, and the new partnership has initiated a bankable feasibility study that is expected to be completed in 2027 to support project financing discussions and a construction decision.

Initial production is expected in 2031 or 2032.

In other recent news, NovaGold Resources Inc. reported its fourth-quarter 2025 earnings, revealing a net loss that widened compared to the previous year. The earnings per share stood at -$0.03, aligning closely with analysts’ forecasts of -$0.0303. Additionally, NovaGold has awarded specialized engineering contracts for its Donlin Gold project to WSP USA Inc., Worley Alaska Inc., and Hatch Ltd. These contracts cover essential components such as a dual-fired power generation facility, a 316-mile buried natural gas pipeline, and a pressure oxidation circuit for treating refractory gold ore.

Canaccord Genuity recently initiated coverage on NovaGold with a buy rating and set a price target of $13.00. The Donlin Gold project, a large-scale initiative in Alaska, remains a focal point for the company, with NovaGold holding a 60% interest. Paulson Advisers LLC owns the remaining 40% of the project. These developments come amid a challenging gold market environment, where NovaGold is making strategic moves to increase its treasury and acquisitions.