NovaGold Raises 2026 Spending Guidance By $11.5 Million To About $110.0 Million On Donlin Gold Deal Fees
The gold developer reported a $36.0 million third-quarter loss and said professional fees tied to the Donlin Gold purchase will stay high into early fiscal 2027.
NovaGold raised its fiscal 2026 operating spending guidance by $11.5 million to about $110.0 million, according to a press release attached to an 8-K filed Thursday. The company, which has no production, also reported a third-quarter loss of $36.0 million, or $0.08 per share.
What the filing says
The 8-K furnishes the earnings release for the quarter ended August 31, 2026. The company attributes the loss to higher spending on the Donlin Gold bankable feasibility study and to higher administrative costs, mainly professional fees on the pending transactions. Higher interest income partly offset those.
Net cash spending for the quarter was $28.1 million: $24.8 million for NovaGold's share of Donlin Gold and $3.3 million in corporate general and administrative costs.
The new 2026 guidance has two parts:
- Corporate general and administrative costs of about $31.2 million, excluding share-based compensation.
- Donlin Gold funding of about $78.8 million, unchanged, which is the company's 60% share of project spending.
The $11.5 million increase includes $7.7 million of added legal and professional fees through the third quarter and $3.8 million expected in the fourth quarter.
What it changes
Costs will not stop at year-end. The company said professional fees should stay elevated through the rest of fiscal 2026 and into the early part of fiscal 2027, and it expects further transaction-related costs in early 2027 when the deal closes.
Donlin Gold spending is also rising. Management expects NovaGold's share to stay above historical levels for the next 12 to 18 months, and to rise further if the deal closes by year-end. Part of 2026 funding will relate to Donlin Gold's 2027 budget because December activities will be pre-funded in November.
Cash and term deposits stood at about $343.4 million at August 31, down from $370,216 thousand at May 31, 2026, but up from $125,169 thousand a year earlier. Management said that is enough to finish the feasibility study, prepay the Barrick promissory note in the fourth calendar quarter of 2026, and cover administrative costs for at least 12 months. It still expects to raise more capital later, including for detailed engineering.
Total liabilities were $186,031 thousand, versus $177,727 thousand at May 31.
The deal and the dates
NovaGold signed agreements on July 21 to buy Paulson's 40% stake in Donlin Gold in an all-share deal, taking its ownership from 60% to 100%. The deal is subject to shareholder, court, regulatory and stock exchange approvals. Shareholders vote at a special meeting on November 3, and the company expects closing by year-end.
The feasibility study remains on schedule for completion in 2027. Donlin Gold also hired Endeavour Financial and Macquarie Capital as financial advisers to help evaluate project funding options. Its team has grown from about 35 to 77 employees since the start of 2026.
On permitting, the Army Corps of Engineers published a Supplemental Environmental Impact Statement on September 23, leaving the federal permits in place. Public comment is open until October 23, and the final version is anticipated in April 2027.
At Wednesday's close, before the report, NovaGold shares were $6.36, down 3.93% for that session.
The next dated events are the October 23 close of public comment on the environmental review and the November 3 shareholder vote on the Donlin Gold purchase.
Sources
- 8-K Filing — NOVAGOLD RESOURCES INC (NG) — SEC EDGAR
- Exhibit exh_991.htm — NOVAGOLD RESOURCES INC 8-K exhibit — SEC EDGAR
- NOVAGOLD Files and Mails Materials for Special Meeting to Approve Proposed Acquisition of 100% of Donlin Gold - The Globe and Mail — theglobeandmail.com
- NOVAGOLD Files and Mails Materials for Special Meeting to — globenewswire.com
