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Citi Assigns Buy Rating to NovaGold (NG)

NovaGold Resources Inc. (NYSEAMERICAN:NG) is one of the 13 Most Promising Gold Stocks According to Wall Street Analysts. On July 15, Citi initiated coverage on NovaGold Resources Inc. (NYSEAMERICAN:NG), giving the stock a Buy rating and setting the price target at $7.00.

Citi pointed out that NovaGold Resources Inc. (NYSEAMERICAN:NG) is still trading well below its 2020 levels of about $10 per share. This was when gold was trading below $2,00 per ounce.

The firm described NovaGold Resources Inc. (NYSEAMERICAN:NG) as “High-Risk” because it is a junior company that has not yet produced gold. While it offers investors significant leverage to gold prices, there is also huge execution risk.

NovaGold Resources Inc. (NYSEAMERICAN:NG) owns 60% of the Donlin Gold project in Alaska, while Paulson Advisers LLC owns the other 40%. Citi noted that this project has the potential to become the second-largest gold mine in the US, with production capacity of about 1.5 million ounces of gold.

However, the project faces major development challenges, including an estimated $10 billion capital expenditure requirement. Citi also pointed out that the recent exit of Barrick Mining Corporation (B) serves as a catalyst to advance the project after over 20 years of inactivity.

The Donlin Gold project timeline remains extended, with a new Technical Report expected in the second half of 2027 and no mine production expected before at least 2030. According to Citi, the project becomes attractive at gold prices above $2,500 per ounce but it might not make economic sense if gold prices are under $2,000 per ounce.

NovaGold Resources Inc. (NYSEAMERICAN:NG) is a precious metals company focused on the development of the Donlin Gold project in Alaska.

While we acknowledge the potential of NG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NG and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Performing AI Stocks So Far in 2025 and 14 Best Aggressive Growth Stocks to Buy According to Analysts.

Disclosure: None. This article is originally published at Insider Monkey.

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 140 Metas
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  • 65 Microsofts
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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