6. NovaGold Resources (NG), a precious metals company, explores and develops mineral properties in Alaska, the U.S., British Columbia and Canada. The company has a major focus on gold properties, but it also has interests in copper, silver and zinc. The company's major assets are Donlin Creek, Galore Creek and Ambler. NovaGold has 50% stakes in Donlin Creek and Galore Creek.
The company holds 17.3 million ounces gold reserves -- 8.2 million ounces measured and indicated, and 4.5 million ounces as indicated. For its fiscal year ended Nov. 30, 2010, NovaGold's cash and cash equivalents more than tripled, to $151.7 million, from 2009 levels.
Going forward, an estimated $41 million budget for 2011 has been approved for the Donlin Creek Project, 50% of which will be by NovaGold. Similarly, for the Galore Creek, Ambler, and Rock Creek Projects, respective budgets of $12.3 million, $10 million and $8.5 million have been approved. The company expects to announce noteworthy results from the studies at Donlin Creek and Galore Creek in 2011.NovaGold recently entered into an agreement with Nome Gold Alaska to sell its alluvial gold properties, through its wholly owned subsidiary Alaska Gold Company. These prospects consist of 11,500 acres of fee-simple U.S. patented mining claims near Nome, Alaska. Nome Gold will pay Alaska Gold $21 million in three tranches and also issue a letter of credit for $4 million as an environmental reclamation bond. Of the five analysts covering the stock, 40% rate it a buy while the remainder rate it a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average of 30%, to $16.58, in the coming 12 months.
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