UPDATE: NOVAGOLD Hits Fresh Year Lows As Announces Q1 2013 Results, Provides Donlin Gold Update
NOVAGOLD RESOURCES INC. ( NG ), 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.