NOVAGOLD finished its third quarter with $343.4 million in cash and term deposits, down $26.8 million in three months. Shareholders vote on November 3 on an all-share deal that would take its stake in the Donlin Gold project in Alaska from 60% to 100%.
At a glance
- The company raised its 2026 spending guidance by $11.5 million to about $110 million.
- It plans to prepay its promissory note to Barrick in the fourth quarter of 2026.
- Donlin Gold's bankable feasibility study is on schedule for completion in 2027.
Background
Donlin Gold is an undeveloped gold project in Alaska with about 40 million ounces of measured and indicated resources. NOVAGOLD owns 60%, and Paulson Advisers and its affiliates own the other 40%. A bankable feasibility study is a detailed engineering and cost study that lenders and investors use to decide whether to finance a mine.
What happened
NOVAGOLD filed its third-quarter report on October 8. At August 31 it held $343.4 million in cash and term deposits, down from $370.2 million at the end of May. It reported a net loss of $36.0 million, or 8 cents a share.
Spending in the quarter was $28.1 million, of which $24.8 million was its share of Donlin Gold costs. The company raised its full-year operating spending guidance by $11.5 million to about $110 million, while its funding for Donlin Gold stays at about $78.8 million.
The ownership deal
On July 21, NOVAGOLD agreed an all-share deal with Paulson Advisers and its affiliates to buy their 40% of Donlin Gold, which would give it 100% of the project. A new US-based parent company would sit at the top of the group.
Shareholders vote on the deal at a special meeting on November 3. The company expects to close it by the end of 2026, subject to approvals. It also expects to prepay its promissory note to Barrick in the fourth quarter.
What it means
Donlin Gold is still years from production. Geotechnical drilling for the feasibility study wraps up this autumn, and the study itself is due in 2027.
The project has about 9 million tonnes of proven and 495 million tonnes of probable reserves, on a 100% basis. Full ownership would give NOVAGOLD sole control of the decision on whether to build it.
Our read
Outlook: neutral. Donlin Gold is not producing, so a change in ownership does not affect gold supply or prices today.
What to watch
- The shareholder vote on the Paulson deal on November 3, 2026.
- The prepayment of the Barrick promissory note in the fourth quarter.
- Progress on the Donlin Gold feasibility study, due in 2027.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-16.
Detailed analysis
Timeline
- 2026-07-21: NOVAGOLD agrees to buy Paulson's 40% of Donlin Gold in an all-share deal.
- 2026-10-08: NOVAGOLD reports $343.4 million in cash at the end of its third quarter.
- 2026-11-03: Shareholders vote on the Donlin Gold ownership deal.
Supply Drivers
Donlin's large resource base makes it one of the bigger undeveloped gold projects, but any supply is years away.
Mining Production
Donlin Gold is a development project, not a producing mine, so it adds no gold supply today.
What could lift prices
- Full ownership would let NOVAGOLD decide alone on building Donlin Gold.
- Its cash covers the feasibility study and the Barrick note prepayment, the company says.
What could weigh on prices
- Spending guidance rose by $11.5 million, and cash fell $26.8 million in the quarter.
- The project has no production and needs a feasibility study and financing before construction.
Country impact
| Country | Impact | Reason |
|---|---|---|
| United States | Low | Donlin Gold is in Alaska, and the deal would create a new US-based parent company. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Gold Mining | Neutral | An ownership change at an undeveloped project does not change current gold output. |
Who gains, who loses
- NOVAGOLD: It would own 100% of Donlin Gold if shareholders approve the deal.
Other ways this could play out
- If shareholders approve the deal on November 3, NOVAGOLD expects to close it by the end of 2026.
- If the vote fails, Donlin Gold stays a 60-40 partnership with Paulson.
Price risks
- A higher gold price would raise the value of Donlin's resources, while a lower one would make financing harder.
- Nothing in this report affects gold prices today.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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