NovaGold Resources reported a fiscal 2026 second quarter net loss of CAD 25.5 million, or CAD 0.06 per share, according to the company's latest earnings announcement. The net loss decreased by CAD 28.8 million from the comparable prior year period, primarily due to higher interest income in 2026 and reduced warrants-related charges. The company's treasury comprising cash and term deposits decreased by CAD 22.3 million, with Donlin Gold's funding of CAD 16.3 million and NOVAGOLD's core gain in interest income. Corporate G&A expenditures increased by CAD 2.3 million compared to the prior year period, primarily due to higher professional fees, share-based compensation and employee compensation. Despite the quarterly loss, NOVAGOLD remains well-funded with CAD 2 million in treasury, enabling completion of the Donlin Gold bankable feasibility study in 2027 and covering corporate G&A costs for at least the next 12 months.
Hedge fund billionaire John Paulson believes gold's bull run is in its early stages, as reported by CNBC. The investor who made his fortune shorting subprime mortgages before the 2008 financial crisis argues that fading trust in fiat currencies will continue pushing investors toward gold. According to Paulson, demand is broadening beyond central banks to include private investors as well. Spot gold traded near $4,121 an ounce Wednesday night, up sharply from June's sub-$4,000 dip, though still well below the record $5,600 gold touched in late January. Paulson's conviction in gold dates back to 2009, when he pivoted his investment focus toward gold following the financial crisis, judging that unprecedented fiscal and monetary stimulus would ultimately erode confidence in the U.S. dollar. Since then, international gold prices have risen roughly threefold, even briefly breaching the historic $5,000-per-ounce mark before pulling back, though the secular bull trend remains intact.
The comments came as NovaGold Resources (NG) announced it has entered into definitive agreements to buy out Paulson Advisers' 40% stake in the Donlin Gold project in Alaska. As reported by CNBC, Paulson serves as NovaGold's co-chairman. The deal raises NovaGold's ownership of the project to 100% and creates a new US-domiciled company worth roughly $4.2 billion. In the transaction, existing NovaGold shareholders will hold about 65% while Paulson receives the remaining 35% stake. Speaking on CNBC's "The Exchange," Paulson stated unequivocally: "I do think we're at the beginning or the early stages of a long-term bull market in gold." He characterized the recent pullback in gold prices as a temporary pause within a long-term uptrend, rather than a trend reversal. The interview coincided with NovaGold's announcement that it would acquire the 40% stake in Alaska's Donlin Gold project held by Paulson Advisers.
Paulson expressed preference for early-stage gold miners over bullion itself, as reported by CNBC. He pointed to NovaGold's 40 million ounces of gold resources against its valuation as evidence of significant upside potential. The quintessential example of this strategy is NovaGold Resources, where Paulson is deeply involved as co-chairman. He cited the numbers: "NovaGold has 40 million ounces of indicated and measured gold resources and reserves, yet its current market capitalization is only $4.2 billion." In his view, such stocks — possessing enormous resource bases not yet fully reflected in their market values — offer investors highly leveraged exposure to rising gold prices. Speaking directly about investment strategy, Paulson stated bluntly: "I think the best way to invest is to invest in early-stage gold stocks." The deal still requires shareholder, court, and regulatory approval, with both companies targeting a close in the fourth quarter.
NovaGold reported accelerating momentum in Q2 2026 with meaningful progress across all primary work streams supporting the Donlin Gold bankable feasibility study. The company has engaged Fluor Corporation to coordinate all specialized contracts with a single consolidated execution framework to improve schedule efficiency and cost accuracy. Key updates include infrastructure advancement for the on-site power plant and natural gas pipeline, with targeted completion in 2027. The project team is building out support for the bankable feasibility study, including activities along the planned Upriver Port and access road corridor, as well as along the proposed natural gas pipeline route. Donlin Gold is positioned to become one of the biggest gold producers, averaging over one million ounces annually, with the project hosting approximately four times the industry average in scale, grade, and longevity. The company is also maintaining strong engagement with Calista Corporation, TKC, local communities and government stakeholders as it advances toward the next stage of project development.
Central banks have been expanding their gold reserves for several years, with a recent industry survey finding most plan to keep growing their holdings. According to CNBC reports, central banks logged 41 tonnes of purchases during one of gold's weaker months this year. This continued accumulation supports Paulson's thesis that institutional demand remains strong despite short-term market volatility. Paulson emphasized that gold is becoming the world's most suitable reserve currency, replacing fiat currencies as global central banks systematically increase their gold reserves. He believes this dynamic is closely tied to a broad-based loss of confidence in the fiat currency system, rather than cyclical trading flows. Such high-profile bullish commentary from a top-tier investor undoubtedly bolsters gold bulls and could redirect capital flows to reassess the allocation value of gold mining equities.
