NovaGold Posts $94.2-Million Profit on Ambler Spinoff

NovaGold Resources Inc. said Thursday it earned a second-quarter profit of $94.2-million as it spun off its Ambler project in Alaska to a new company called NovaCopper.

The company said the increase was due mostly to a gain of $71.6-million realized on the transfer of the Upper Kobuk Mineral Project in the Ambler district as a result of the NovaCopper spin-out.

NovaGold said the profit for the three months ended May 31 totalled 26 cents per diluted share compared with a profit of $24.6-million or a loss of a penny per diluted share a year ago.

At May 31,the company, which has projects in development, had $301.2-million in cash and cash equivalents.

Last month, NovaGold signed a deal to sell its troubled Rock Creek property in Nome, Alaska, to Bering Straits Native Corp.

NovaGold didn’t disclose the sale price but said it expects to save about $14-million (U.S.) that it had budgeted in 2012 for closure expenditures related to the Rock Creek project.

The Vancouver-based company has been focusing on its Donlin Gold project in Alaska – jointly owned with Toronto-based Barrick Gold Corp. – and has been selling or spinning off its other projects.

NovaGold spun off its Ambler project into a company called NovaCopper earlier this year and announced plans to sell its stake in the Galore Creek project in B.C., that it has been developing with Teck Resources.

Source: globeandmail.com

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Posted by WoodlawnPost on Jul 13 2012. Filed under N. America. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.