A pre-revenue gold exploration company whose sole asset is the Donlin Gold project in southwest Alaska, a deposit expected to become the largest single gold mine in the U.S. if developed. The company began in 1984 in Dartmouth, Nova Scotia, as NovaCan Mining Resources, then renamed itself NOVAGOLD by fusing "Nova" for Nova Scotia with "gold." It produces no gold itself—it has spent its years drilling, permitting, and studying this remote deposit near the Kuskokwim River.
NovaGold net loss narrowed to $25.5M as the prior-year $39.6M warrant charge did not repeat, while Donlin Gold costs rose with the Bankable Feasibility Study.
The net loss narrowed sharply from a year ago, but only because a one-time charge disappeared. The loss was $25.5 million, down from $54.3 million, as the absence of a $39.6 million non-cash warrant charge more than offset a $10.4 million increase in the company's share of Donlin Gold spending. The company is now fully funded to complete its feasibility study and pay off its debt, but the underlying cash burn on the project is accelerating.
Key takeaways
The net loss of $25.5 million narrowed by $28.8 million , driven entirely by the absence of a $39.6 million for recorded in the prior-year quarter.
The company's share of Donlin Gold losses rose $10.4 million to $16.3 million, reflecting its increased 60% ownership stake and higher site activity as Fluor and other contractors advanced the Bankable Feasibility Study.
General and administrative expenses increased $3.1 million due to elevated professional fees and higher from two annual award grants falling within the trailing twelve months.
Section summaries
Management's Discussion and Analysis
Net loss narrowed to $25.5M in Q2 2026 from $54.3M a year ago, driven by absence of a $39.6M prior-year warrant charge and higher interest income.
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Net loss decreased by $28.8M to $25.5M, primarily because Q2 2025 included a $39.6M for Backstop Agreement .
The Company's share of Donlin Gold expenses rose $10.4M to $16.3M, reflecting a 10% ownership increase to 60% and higher BFS-related activity by Fluor and other contractors.
Total liquidity stood at $371.4 million in cash, term deposits, and marketable securities as of May 31, 2026, which management states is sufficient to complete the feasibility study, prepay the $100 million Barrick note option, and cover corporate costs.
Full-year 2026 spending is unchanged at $98.5 million, with $78.8 million allocated to Donlin Gold and $19.7 million for corporate G&A, though the company expects to raise additional capital later for detailed engineering.
Interest rate sensitivity on the promissory note to Barrick increased to $1.7 million per 1% change in the U.S. prime rate, up from $1.6 million in the prior quarter, reflecting the growing note balance.
What changed
The prior quarter flagged the pace of cash consumption against $394.2 million in liquidity as BFS spending ramps up: total liquidity fell to $371.4 million, a $22.8 million decline, as the company funded its increased share of Donlin Gold costs and corporate expenses.
The option to prepay the $158.9 million Barrick promissory note for $100 million before December 3, 2026, was previously flagged and remains outstanding; management reiterated it has sufficient liquidity to exercise this option.
The federal agencies' completion of the supplemental tailings analysis, previously targeted for mid-2027, was not updated in this filing, leaving the timeline unchanged.
A new risk factor was added, warning that geopolitical tensions and persistent inflation could drive significant cost overruns on the Donlin Gold project, threatening its economic viability and development timeline.
What to watch
Whether NovaGold exercises its option to prepay the $158.9 million Barrick promissory note for $100 million before the December 3, 2026 deadline, and the impact on its liquidity position.
The pace of cash consumption against the $371.4 million in liquidity as the Bankable Feasibility Study progresses and the company funds 60% of Donlin Gold costs.
Any decision by the Donlin Gold LLC board to approve the completed Bankable Feasibility Study, which would trigger a materially larger phase of spending on detailed engineering.
The federal agencies' completion of the supplemental tailings analysis, targeted for mid-2027, and any resulting permit modifications for Donlin Gold.
General and administrative expenses increased $3.1M due to elevated professional fees and higher from two annual award grants in the trailing twelve months.
Liquidity stood at $371.4M in cash, , and marketable securities as of May 31, 2026, deemed sufficient to complete the BFS, prepay the $100M Barrick note option, and cover corporate costs.
Full-year 2026 is unchanged: $78.8M for Donlin Gold funding and $19.7M for corporate G&A, with the Company expecting to raise additional capital later for detailed engineering.
Quantitative and Qualitative Disclosures About Market Risk
Our financial instruments are exposed to certain financial risks, including credit and interest rate risks. Credit risk Concentration of credit risk exists with respect to our cash and cash equivalents, and term deposit investments. Cash and cash equivalents are primarily held a…
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Our financial instruments are exposed to certain financial risks, including credit and interest rate risks.
Credit risk
Concentration of credit risk exists with respect to our cash and cash equivalents, and term deposit investments. Cash and cash equivalents are primarily held at three Canadian chartered banks with investment grade credit ratings. All term deposits are held at two Canadian chartered banks and one large U.S. bank with investment grade credit ratings and have maturities of less than one year.
Interest rate risk
The interest rate on the promissory note owed to Barrick is variable with the U.S. prime rate. Based on the amount owing on the promissory note as of May 31, 2026, and assuming all other variables remain constant, a 1% change in the U.S. prime rate would result in an increase/decrease of approximately $1.7 million in the interest accrued on the promissory note per annum.
From time to time, the Company may be a party to litigation or legal proceedings that are considered ordinary routine litigation incidental to our business or not material. Notwithstanding the foregoing, please refer to the sections titled Litigation in Item 7 – Management’s Dis…
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From time to time, the Company may be a party to litigation or legal proceedings that are considered ordinary routine litigation incidental to our business or not material. Notwithstanding the foregoing, please refer to the sections titled Litigation in Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K and Upholding current permits and working to secure key state approvals in Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Quarterly Report on Form 10-Q.