ORLANDO, Fla., Nov. 19, 2009 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., has initiated coverage on NovaGold Resources Inc. (TSX:NG) (NYSE Amex:NG), a company focused on precious metals mining and exploration in North America.
Aditya Khandekar, CFA, RedChip Research Analyst, reported:
"We believe the current macroeconomic environment makes the economics of metal exploration and mining extremely attractive. Gold remains one of the best hedges to inflation, and investment will continue to flow into precious metals stocks as investors seek to protect against a falling dollar and unprecedented monetary easing. Copper prices too are expected to remain firm over the next several years owing to the infrastructure-led growth prospects of emerging economies and stimulus spending in the developed economies of the U.S., EU and Japan.
"NovaGold's valuation will command a premium in the market once the Company is able to demonstrate substantial progress in transitioning from a developer to a mid-tier producer. We believe there is a strong possibility of that happening sooner than the market expects."
Khandekar continued: "We are initiating coverage of NovaGold Resources Inc. with a Buy rating and price target of C$8.00 based on: (1) our bullish long-term outlook for gold as investors flock to the metal in search of a safe haven for their investments following the economic dislocations globally; (2) the market's significantly discounted valuation of NovaGold's world-class copper-gold-silver project, Galore Creek; (3) the Company's projected transition from a developer to a mid-tier producer; and (4) the attractiveness of the Company as a top acquisition target in the next wave of industry consolidation."
To receive a complimentary copy of the RedChip Visibility Initial Research Report for NovaGold, please visit http://www.redchip.com/about/aboutmain.asp?pg=vr&rid=202
To learn more about NovaGold Resources, visit http://www.redchip.com/visibility/investor.asp?symbol=NG.
About NovaGold
NovaGold is a precious metals company engaged in the exploration and development of mineral properties in North America. The Company has a portfolio of mineral properties located in Alaska, USA, and British Columbia, Canada. The Company's largest projects are being advanced with major mining companies. The Donlin Creek project is held by a limited liability company owned equally by NovaGold and Barrick Gold U.S. Inc. The Galore Creek project is held by a partnership owned equally by NovaGold and Teck Resources Limited. NovaGold owns a 100% interest in the Rock Creek, Big Hurrah and Nome Gold deposits in Nome, Alaska. NovaGold has one of the largest reserve/resource bases of any junior or mid-tier level producing gold company, and trades on the TSX and NYSE-AMEX under the symbol NG. More information is available online at www.novagold.net or by email at info@novagold.net.
About RedChip Companies, Inc.
RedChip Companies is an international, small-cap research and financial public relations firm headquartered in Orlando, Florida; with affiliate offices in Paris and Qingdao, China. RedChip delivers concrete, measurable results for its clients through its extensive national and international network of small-cap institutional and retail investors. RedChip has developed the most comprehensive platform of products and services for small-cap companies, including: RedChip Research(TM), Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Small-Cap TV(TM), Social Media Services, and RedChip Radio(TM). To learn more about RedChip's products and services please visit: http://www.redchip.com/visibility/productsandservices.asp.
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Disclosure
The analysts contributing to this report do not hold any shares of NovaGold Resources Inc. ("NG"). RedChip certifies that no part of the analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. The equity research report(s) are not a recommendation of a solicitation to purchase or sell any security, nor do they constitute investment advice. NovaGold Resources Inc. is a client of RedChip Companies, Inc. and of RedChip Visibility, a division of RedChip Companies. NG agreed to pay RedChip Visibility a fee of twenty-five thousand dollars in cash for RedChip Visibility Program services, which includes the preparation of the equity research report(s). The equity research report(s) are prepared for informational purposes only and are paid for by the company portrayed in the report. The equity research report(s) are not a recommendation of a solicitation to purchase or sell any security, nor do they constitute investment advice. RedChip Companies, Inc., is currently engaged by this company to provide investor awareness services. Investor awareness services and programs are designed to help companies communicate their investment characteristics. These services may include investor conferences, digital and print distribution of NovaGold investor-related materials and radio programming. NG agreed to pay RedChip Companies, Inc. a monthly fee of twenty-five thousand dollars in cash and warrants to purchase one hundred thousand shares of the NG common stock (subject to conditions) for twelve months of these services. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein.