NovaGold (NYSE:NG) reported its latest quarterly earnings figures after hours today, bringing in results that were better than during the year-ago quarter.
The Vancouver, Canada-based precious metals business said that for its first quarter of the fiscal year ended February 28, 2019, it loss from operations came in at $5.7 million, falling from the $6.5 million it brought in losses during the same period in its fiscal 2018. This improvement was aided by a reduction in general and administrative expense, as well as lower costs at Donlin Gold.
Its general administrative expense fell by $300,000 due in part to lower share-based compensation costs. At Donlin Gold, expenses were down by $500,000 due to a reduction in permitting and optimization activities. The company’s net loss from continuing operations fell to $6.3 million, or 2 cents per share, from $8 million during the year-ago quarter, or 3 cents per share.
Novagold is a very well funded company with roughly $162 million in cash and term deposits as of February 28, 2019, as well as an additional $100 million it projects to receive from Newmont in guaranteed payments over the course of five years or less. Its funding also includes a $75 million contingent payment.
“We have enough funds to advance Donlin Gold and meet all of our foreseeable financial obligations with no need to go to capital markets until a construction decision is made,” the company said in its press release
NG stock was up about 2.5% during regular trading hours, but shares fell roughly 0.7% after the bell following the company’s quarterly earnings results.