Its share price is down substantially since January, and last month the company recorded a loss when it put out its second-quarter results. It said at the time that "[s]ubstantial doubt exists as to the Company's ability to continue as a going concern as the continued operations and exploration activities of the Company are dependent on its ability to obtain additional financing within the next twelve months."
From an investor standpoint, that's certainly a troubling statement. However, it's worth noting that during that period NovaCopper also reduced its expenses and lowered its Q2 and half-year net losses in a year-over-year comparison.
Further, the company is still seeing support from market watchers and its largest shareholders. Case in point: just before last month's results were released, those shareholders put up cash for the entirety of NovaCopper's recent private placement, leaving the company funded for the rest of the year — at least in terms of exploration activities. Meanwhile, in an August 4 article from Seeking Alpha, the Investment Doctor points to "impressive" economics at the company's Arctic project, including a cash cost of $0.62 per pound of copper, and states that "NovaCopper is trading at a fraction of its fair value, and further achievements will unlock this value."
Finally, last Friday, NovaCopper provided an update on its summer activities, indicating that current work at Bornite is progressing well, as are the Alaska Industrial Development Export Authority's (AIDEA) efforts regarding community engagement and the Interior Energy LNG Project.To find out more about the company and what it has planned for the Ambler Mining District, Copper Investing News (CIN) spoke with CEO Rick Van Nieuwenhuyse. Here's what he had to say.