Part article. http://seekingalpha.com/article/1046...

NovaGold’s market cap is significantly less than the sum of the book value of its three major projects:

NovaGold Resources Inc.’s (NG) market cap is currently about $317 million, which is only slightly higher than the book value of its Rock Creek gold mine including property, plant, and equipment, plus development costs. This would imply that the market is currently attributing no value for NovaGold’s share of its 50% ownership in its two world-class projects, the partnership with Barrick Gold Corporation (ABX) on the Donlin Creek gold project and with Teck Cominco Ltd. (TCK) on the Galore Creek copper-gold project. NovaGold’s share of the total investment in property, plant, and equipment plus development costs at Donlin Creek is $238 million, with $360 million on the Galore Creek project, for a total of $868 million on these three main assets. NovaGold’s market capitalization is about one third of its share of the capitalized investment in these projects.

We understand that Barrick is working toward completion of a Feasibility Study on Donlin Creek by 1Q09. This would mean that a majority of NovaGold’s 50% ownership of this gold resource of 31.7 million Measured and Indicated ounces should move into the reserve category and allow for the start of the permit process. In addition, Teck Cominco is anticipated to provide an update on a new design plan for the Galore Creek project, which would be the basis for an updated Feasibility Study and initiation of permitting. Continued development by Barrick and Teck Cominco should assure markets, leading to NovaGold’s market cap appreciating toward total book value.

NovaGold is in the process of commissioning its Rock Creek gold mine in Nome, Alaska, and has recently completed its first gold pour. NovaGold is scheduled to produce 100,000 ounces annually, generating an estimated $25-$35 million in 2009, at an average cash cost of $500 per ounce. NovaGold is working to increase the resource to extend the mine life to ten years. Management estimates that production from the Rock Creek mine, plus cash on hand and proceeds of other non-core assets, should provide funds for planned activities for the next twelve months. NovaGold remains a viable company with significantly undervalued and unrecognized assets.