This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Can International Tower Hill Outshine NovaGold?

NEW YORK ( TheStreet ) -- NovaGold (NG) is the sexy, high profile junior gold miner in Alaska, but investors shouldn't forget about its nearby competitor International Tower Hill (THM).

As the below chart shows, NovaGold and International Tower mirrored each other last year until September, when NovaGold broke out on takeover rumors that helped push the company to a 125% return for 2010. International Tower Hill, on the other hand, returned only 38%, but if it follows its peer, it should be ready for a breakout. Jeb Handwerger, editor of, thinks that THM is ready to make a move and that at "under $8 it's a steal."

If NovaGold is the sophisticated adult commanding investors' attention, it's fair to say that International Tower is the gangly teenager that has yet to be taken seriously. NovaGold has two of the largest gold and copper deposits in the world -- Donlin Creek and Galore Creek -- where it has 50/50 partnerships with Barrick Gold (ABX - Get Report) and Teck Resources (TCK - Get Report), respectively. While NovaGold is four to seven years away from production, its net interest in the two projects is staggering at 30 million ounces of gold, 157 million ounces of silver and 9.1 billion pounds of copper.

International Tower has 100% ownership of the Livengood gold project, which has 13 million ounces of resource, one of the biggest discoveries in the past 20 years, but still not as big as NovaGold's. International Tower doesn't have to share the gold with anyone, though, but it doesn't have big early stage funding either.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

NovaGold also has another thing going for it -- the quality of its gold.

NovaGold's Donlin Creek near Port of Bethel in Western Alaska is a 33.6 million an ounce gold deposit, according to reserve estimates, averaging 2.2 grams. The miner will be able to produce the gold for around $400 an ounce.

International Tower's grade is about 0.5 grams with rough cash costs of $490-$530 an ounce. The higher the grade of gold the more you can sell it for, but the more money it takes to refine, and vice versa for a lower grade. The only way a miner can compensate for low grade gold is by mining a lot of it as cheaply as possible.

International Tower Hill is lucky in that its deposit is so big, but it needs gold to stay above $950 an ounce for its deposit to make sense. Luckily, "no one in the [business] thinks gold will fall below $1,000," says John Doody, editor of
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ABX $19.37 10.37%
AU $16.45 6.20%
NG $6.49 5.36%
NAK $0.43 7.46%
TCK $12.25 9.77%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs