Shares of NovaGold Resources Inc. (NG) retreated in pre-market trading on Thursday, February 12, 2026, giving back a portion of the previous session's substantial gains. The stock declined 1.4% to $11.61, following a significant 12.7% rally that had lifted its price to $11.77. Trading volume during Wednesday's surge was notable, with approximately 6.6 million shares changing hands, positioning the equity near the higher end of its recent trading band.
Project Milestones Drive Valuation
NovaGold's market valuation is intrinsically linked to developmental progress at its key assets, rather than operational production. Market participants are closely monitoring advancements related to the Donlin Gold project in Alaska, particularly the ongoing bankable feasibility study. This comprehensive assessment, a critical document for securing future mine financing, is being managed by engineering firm Fluor Corporation (FLR) with a targeted completion date of 2027. Investors are anticipating more detailed timelines and a full budget breakdown in the near term.
Fluor's Mining & Metals president, Harish Jammula, emphasized the company's commitment to delivering an "integrated, high-quality study." NovaGold CEO Greg Lang characterized the selection of Fluor as a pivotal step forward for Donlin. The sentiment was echoed by notable investor John Paulson, who highlighted Fluor's established track record in managing complex large-scale projects.
Capital Moves and Insider Activity
The company recently bolstered its financial position through a substantial capital raise. NovaGold concluded an upsized bought-deal private placement, issuing 31.02 million shares at $10.00 each. This transaction generated gross proceeds of approximately $310 million, earmarked for advancing the Donlin project, settling a prepayment option connected to a promissory note with partner Barrick Gold (GOLD), and general corporate purposes.
Adding to the narrative, insider buying activity was disclosed in a recent SEC filing. Director Daniel Muniz-Quintanilla purchased 22,470 common shares at an average price of $8.94 per share on February 10, 2026.
Shifting Ownership and Macro Backdrop
NovaGold recently increased its economic interest in the Donlin venture to 60%. This adjustment followed an agreement where Barrick Gold sold its 50% stake in the project to both NovaGold and Paulson for up to $1.1 billion. Paulson & Co. now holds the remaining 40% interest.
The broader commodity environment provided a mixed backdrop. Gold prices edged lower, with the spot metal falling 0.3% to $5,062.83 per ounce. This weakness was attributed to robust U.S. employment data, which tempered market expectations for imminent interest rate cuts by the Federal Reserve.
Inherent Risks and Forward Look
Significant execution and financial risks remain central to the Donlin story. The project represents a massive, capital-intensive undertaking, with reported development costs already exceeding $9 billion. A particular concern cited by analysts is the strategy of seeking financing while key engineering studies are still in progress; any material shift in the study's underlying assumptions could complicate funding efforts.
The market's immediate focus is on forthcoming updates regarding the feasibility study's detailed budget and contracting strategy. Additionally, investors are assessing management's ability to maintain momentum as the project transitions into more advanced accounting and development phases. The company's next earnings report is scheduled for early April, which may provide further clarity on its corporate trajectory and project expenditures.
