NOVAGOLD Reports $36M Loss and Seeks Full Ownership of Donlin Gold

NOVAGOLD Resources reported a net loss of $36.0 million, or $0.08 per share, for the third quarter of 2026. This result missed analyst expectations of a $0.06 per share loss by 33%. The company is pursuing a consolidation strategy to secure 100% ownership of the Donlin Gold project. This plan is intended to streamline capital access as development costs rise.

"The transaction facilitates and expands access to private and official-sector capital, including governmental agencies and sovereign wealth funds," said Greg Lang, President and CEO of NOVAGOLD, in a statement regarding the strategic shift.

Consolidation and Shareholder Vote

The proposed all-share transaction to acquire full control of the Donlin Gold project is subject to a shareholder vote. According to a report on the fiscal results, the deal requires approval from at least 66.67% of the votes cast by shareholders. The company has scheduled a special meeting for November 3, 2026, to finalize the decision.

Rising Costs and Operational Outlook

Management increased its fiscal 2026 operating expenditure guidance by $11.5 million, bringing the total expected spend to $110.0 million. The company cited legal and professional fees associated with the consolidation transaction as the primary driver for this upward revision.

Consolidating ownership marks a change for the company, which has historically shared the Donlin Gold project. By moving to a 100% ownership structure, NOVAGOLD aims to simplify its corporate profile and improve its ability to leverage external financing. This remains necessary given the capital requirements of large-scale gold mining developments. The success of this strategy depends on the upcoming shareholder approval and the company's ability to manage its rising operational expenses through the remainder of the fiscal year.