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May 31, 2025
Novagold Q2 2025 Earnings Report
NOVAGOLD reported a Q2 net loss driven by a non-recurring non-cash charge, while significantly increasing its ownership in the Donlin Gold project.
Key Takeaways
NOVAGOLD posted a net loss of $54.3 million in Q2 2025, largely due to a $39.6 million non-cash charge related to expired warrants. The company strengthened its treasury through a $234 million equity raise and expanded its stake in Donlin Gold to 60%.
Reported a net loss of $54.3 million due to a one-time non-cash charge from expired warrants.
Earnings per share came in at ($0.15); adjusted EPS excluding the warrant charge was ($0.04).
Raised approximately $234 million through public and private equity offerings.
Increased ownership in Donlin Gold to 60% after acquiring a 10% additional stake from Barrick for $1 billion.
Forward Guidance
NOVAGOLD expects increased expenditures due to a larger stake in Donlin Gold and the initiation of a feasibility study.
Positive Outlook
- Ownership in Donlin Gold increased to 60%
- Feasibility Study update to commence
- 2025 drill program progressing
- Enhanced treasury to fund development
- New strategic partnership with Paulson
Challenges Ahead
- Corporate expenses expected to exceed prior guidance
- Higher share of funding for Donlin Gold after stake increase
- Legal and transaction costs impacting financials
- Pending updates to 2025 spending forecasts
- Ongoing litigation and permitting processes pose uncertainties
Historical Earnings Impact
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Avg. Return Before/After Earnings
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