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

Three Alaskan Gold Miners With Golden Promise

NovaGold has to spend millions of dollars a year on social outreach in the form of jobs and training, in order to connect with the surrounding communities. According to Nieuwenhuyse, there are no large commercial fisheries nearby, but the company will still spend about $5 million a year for water and air quality studies as well as monitoring the fish and wild life.

Northern Dynasty has the worst reputation when it comes to location as it is near the Bristol Bay salmon fishery and is 20 miles away from a fault line. CEO, Ron Thiessen, says "if we believe we would damage the fishery, we wouldn't build the mine." But various environmental and native groups disagree and are filing lawsuits to stop the project. Several laws have been proposed in the state legislature to prevent mining in the area, but have since been defeated.

Thiessen contends that if the company outsources its power, builds a spur line to take advantage of Alaska's natural gas pipelines, as well as build a deep sea port facility to import liquid natural gas, that these moves would benefit the whole community. They would bring cheaper energy and more jobs.

Northern Dynasty has done extensive community outreach in the Lake and Peninsula borough, where Thiessen claims the company doesn't have any issues. Now the company must do more outreach to the small 22 surrounding communities.

All three companies are also takeover targets. Northern Dynasty wants to be bought. Thiessen has said when it comes time to raise its $1.8 billion in capital that it would put itself up for sale. NovaGold has also intimated it would be open to a buyout or partnership. Barrick Gold made an offer for the company in 2006 at $16 a share and Paulson owns 9% of the company, which he was rumored to do to press the company to sell itself.

International Tower Hill claims it wants to develop the mine itself but John Paulson also owns 6% of the company and AngloGold Ashanti (AU - Get Report) owns 11.5%. The company was not interested in partnerships.

Analysts are mostly optimistic on these three junior miners. Northern Dynasty has 3 buy ratings; NovaGold has 2 buys and 3 holds; International Tower Hill has 5 buys and 2 holds.

Adam Graf, director of emerging miners for Dahlman Rose & Co. covers all three and has a buy rating on Northern Dynasty and International Tower Hill but a hold on NovaGold.

Graf sees "greater resource growth at Livengood," a long mine life at Pebble, and, while NovaGold's projects are huge, Graf is worried about the company's $4 billion financial responsibility for all of its mines.

More on Gold
Gold Price News
How to Invest in Gold

-- Written by Alix Steel in New York.

>To contact the writer of this article, click here: Alix Steel.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:


Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
3 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 $17.55 0.00%
AU $15.49 0.00%
KGC $5.17 0.00%
NAK $0.40 -0.08%
NG $6.16 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs