NOVAGOLD RESOURCES INC. (
), which fell nearly 8% and hit new year lows Wednesday as bullion
prices slumped, has hit fresh year lows today after it announced
results for its first quarter ended February 28, 2013 and gave an
update on the permitting process for its flagship Donlin Gold
project in Alaska. It said: "With approximately US$300 million in
cash and cash equivalents at the end of the first quarter, NOVAGOLD
has a strong balance sheet and more than sufficient cash to fulfill
all of its current financial obligations as well as fund the
advancement of the Donlin Gold project through the permitting
process and support ongoing activitinoves at its Galore Creek
project in British Columbia."
For the first quarter, the company reported a net loss of $13.8
million (or $0.05 basic and diluted loss per share), compared to
net income of $16.8 million (or $0.07 per share, basic and a loss
of $0.01 per share, diluted) for the corresponding period in 2012.
The variance in the first quarter was primarily due to the non-cash
losses on embedded derivative and derivative liabilities related to
U.S. dollar denominated convertible notes and common share warrants
totaling $3.3 million compared to non-cash gains of $46.3 million
in the first quarter 2012.
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