Coxcomb, I've never seen someone spew such BS and label it as fact before. You immediately value it down from $15 to $10 based on some alleged provision in that deal? If they were willing to pay $15 for whatever reason, then it was found to yield positive net present value.. plain and simple. Whatever the reason for the $5 difference, it was still worth it to pay and part of the deal nonetheless. As Mark Faber has said, they've added to their reserves since then and also gold seems to be moving up in value. Also, you say NG is dead money because they won't be developing a mine any time soon. Again, this is BS. Dead money is the US dollar and other fiat currencies eventually at this rate. If not dead, then on life support at the very least. Gold will be valuable for a long time to come.. so in the event that NG doesn't get a mine up or a buyout, the downside is limited.
Simplw: Marc Faber is an astute investor, well known in the world. and he said in Barrons ththis weekend "I like NovaGold Resources . Barrick Gold [ABX] tried to buy them for about $15 a share a year ago. There was no deal and NovaGold fell below 2, although it has rebounded to 5.50. NovaGold has enlarged its asset base significantly. Today it is even more valuable than $15."
Like Stephen Leeb, Marc Faber doesn'tunderstand this company at all.
They both talk about NG as if it is trading at 1/3 of the Barrick offer price and is, therefore, a bargain. NG nearly doubled their float to save the company from going bankrupt last fall. Thus, the company trades at the equivalent of nearly $10 compared to the Barrick $15 offer.
NeverGold has not really expanded their assets. They have merely upgraded already known assets from Inferred to Measured and Indicated, and Measured and Indicated to Proven and Probable.
There isn't much likelihood either of their mega projects will be developed in this post financial meltdown world. Thus, NG is likely dead money. Meanwhile, they have no possibility for revenue having so badly botched Rock Creek. How are they going to survive? Barrick knows this - they are just waiting like a circling vulture to pick up Donlin Creek in a bankruptcy auction (Barrick has no interest in Galore Creek - they know that project is not worth developing).
Be very careful with this one. After the Barrons bubble pops NG will resume its inevitable march to $4; then, we shall see if it has a bounce off $4.
Investing in gold miners is a great strategy given the very suspect nature of paper money. NovaGold is not the way to do it, however.
Wow...Mark Faber recommended NG? That is good news. Mark is a very interesting guy to listen to if you can get past that Dr. Evil accent. :) He is a very smart guy and really see's through all the BS that the federal reserve gives the regular people. That makes me happy that he likes nova gold as that is a big deal really for this company.