NOVAGOLD acquires full ownership of Donlin Gold

What happened: On July 20, NovaGold (NG) acquired full ownership of the Donlin Gold project in Alaska from Paulson & Co., increasing its stake from 60% to 100%. The same day, NovaGold's stock surged 10.3% to $6.21, extending its winning streak to three days. John Paulson, who called the 2008 crash and is known for his gold investments, disclosed he bought NovaGold stock and will co-chair the company.

Market impact: This acquisition expands NovaGold's gold portfolio and increases its exposure to the Alaska mining sector. The move could drive further interest in early-stage gold stocks, given Paulson's bullish stance on gold. Barrick Gold (B), a major gold miner, recently reported a 64% year-over-year increase in Q2 revenue, indicating a strong gold market.

What to watch next: NovaGold's next earnings release, scheduled for August 12, will provide insights into the company's financial health post-acquisition. Additionally, investors should monitor gold prices, as they directly impact NovaGold's valuation and profitability. Lastly, regulatory approvals for the Donlin Gold project's development will be crucial for NovaGold's future growth.