NOVAGOLD RESOURCES (NG) Surges 6.38% to 2025 High on Analyst Upgrades and Donlin Gold Progress

NOVAGOLD RESOURCES (NG) surged 6.38% in recent trading, reaching its highest level since October 2025, with an intraday gain of 10.32%. The rally reflects renewed investor confidence driven by a confluence of strategic and market factors.

Analyst sentiment has played a pivotal role, with major firms upgrading the stock and raising price targets. Citigroup’s recent 78.57% increase in its target to $12.50 and RBC Capital’s shift to “Outperform” underscore growing institutional validation. These moves have attracted both momentum traders and long-term investors, amplifying NG’s recent performance.

Financial strength further supports the bullish narrative. The company holds $101 million in cash and term deposits, ensuring a three-year runway at current burn rates. This liquidity reduces dilution risks and provides flexibility for the Donlin Gold project, a 50-50 joint venture with Barrick Gold. The 2025 budget of $43 million is allocated to critical activities, including metallurgical testing and permitting, while corporate costs remain tightly controlled.

Progress at Donlin Gold, a high-grade project with 39 million ounces of gold, has been a key catalyst. Recent milestones include metallurgical optimizations and submissions for dam safety certification, which could pave the way for construction. The project’s potential for 27 years of production and its strategic location in Alaska, a favorable jurisdiction, have drawn support from U.S. lawmakers and partners alike.

Gold prices, which hit a record $2,790 per ounce in October 2024, continue to bolster the sector. Donlin Gold’s low cash costs ($635 per ounce) position it to benefit from prolonged bull markets. Meanwhile, NOVAGOLD’s proactive community engagement and environmental initiatives have strengthened its social license, mitigating regulatory risks. Legal challenges to permits have largely been resolved in the company’s favor, with remaining disputes expected to conclude favorably in early 2025.

Institutional ownership at 78% and insider purchases, such as director Ethan Schutt’s acquisition of 3,824 shares, signal alignment with management. The stock’s beta of 1.28 highlights its sensitivity to gold sector trends, while a market cap of $3.95 billion reflects growing appetite for high-potential junior miners. As the company advances toward a feasibility study and dam certification, investors will closely monitor these milestones for further upside potential.