NovaGold profit tumbles to $16.8 million but on track with sale of Galore Creek stake

Canadian NovaGold Resources Inc. (TSX:NG) said its net income fell to $16.8 million in the first quarter pushed by the elimination of foreign exchange gains because of a new arrangement with warrant holders.

The company added it still expects to conclude a sale of its 50% stake in the Galore Creek copper project in British Columbia this year, as it moves to focus exclusively on the massive Donlin gold project in Alaska. Donlin’s other owner is Barrick Gold Corp. (TSX, NYSE:ABX).

In November last year NovaGold  announced it would move to sell its stake in Galore Creek, which it owns jointly with Canadian miner Teck Resources Ltd.

As of Feb. 29 when the quarter ended, NovaGold had $342.6 million in cash and equivalents.

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