NovaGold Resources (NG) saw its stock plummet 5% in pre-market trading on Wednesday following the release of its fiscal third-quarter results for 2025. The company reported a net loss of $0.04 per share, wider than the $0.03 loss recorded in the same period last year, although it beat analysts' expectations of a $0.10 per share loss.
The increased loss can be attributed to higher general and administrative expenses, primarily due to increased share-based compensation. However, this was partially offset by lower professional fees, salaries, and benefits. The company also reported no revenue for the quarter, which was in line with analysts' expectations.
In addition to the financial results, NovaGold announced the completion of the Donlin Gold acquisition. The company incurred $9.1 million in costs related to this transaction, mainly for investment banking and legal fees. To support its $200 million obligation under the Membership Interest Purchase Agreement, NovaGold arranged funding commitments of up to $170 million from various investors, including Electrum Strategic Resources L.P., Paulson, and Kopernik Global Investors, LLC.
While the company's losses were less than anticipated, the widening loss compared to the previous year and the significant expenses related to the Donlin Gold acquisition appear to have spooked investors, leading to the pre-market plunge. As the market digests this information, it remains to be seen how NovaGold's stock will perform during regular trading hours.
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