* Q2 loss C$0.03/shr vs yr-ago loss C$0.22/shr
* No plans to restart work on two major mines this year
* Will need external financing to develop properties (Adds
details, analyst comment, updates share movement)
By Ashutosh Joshi
July 15 Canada's NovaGold Resources Inc (NG.TO)
reported a narrower quarterly loss, aided by lower expenses and
a stronger Canadian dollar, and said it does not plan to
restart construction of its two major mines this year.
For the second quarter ended May 31, the company's net loss
was C$4.8 million ($4.23 million), or 3 Canadian cents a share,
compared with C$23.2 million, or 22 Canadian cents, a year ago.
Revenue rose by about C$100,000 to C$400,000.
"Earnings are really irrelevant for this company at this
point given the fact that no cash was being generated outside
of the aggregate sales they have," Salman Partners analyst
Haytham Hodaly told Reuters.
The analyst, who has a "sell" rating on the stock, said the
company's earnings were in line with his expectations and that
he does not expect its performance in the coming quarters to be
different from this quarter.
NovaGold, which has minerals properties in Alaska and
British Columbia, said it does not plan to commence development
at its Donlin Creek and Galore Creek projects this year.
NovaGold said it will need external financing to develop
The company, which suspended work on its Rock Creek project
last year, does not plan to recommence the project now.
In April, NovaGold had said it will consider options for
Rock Creek this year, including restarting the mine, bringing
in an operating partner or selling the mine. [ID:nN15494914]
Net expenses for the quarter fell 65 percent to C$9.1
million, as the company spent C$12.5 million less on
exploration activities than a year ago.
The company recorded a foreign exchange gain of C$16.1
million, mainly due to the impact of the strengthening Canadian
dollar on its U.S. currency denominated liabilities.
Shares of the Vancouver, British Columbia-based company
were up 7 Canadian cents at C$4.83 on the Toronto Stock
($1=1.134 Canadian Dollar)
(Reporting by Ashutosh Joshi in Bangalore; Editing by Pradeep