Novagold Resources Inc. says the spinoff of its copper assets last year and other factors resulted in a $67.6-million net profit for the 2012 financial year.
That amounted to about nine cents per share after dilution and contrasted with a loss of $57.4-million or 24 cents per share in Novagold’s fiscal 2011.
The Vancouver-based company, which is in the development phase and not producing sales revenue, had $253-million in cash and equivalents when the 2012 financial year ended Nov. 30 – up from $60.6-million a year earlier.
Novagold received $316.4-million in net proceeds from an equity financing in February 2012.
That was partially offset by $88.4-million of cash used in operating activities and $40.4-million used to fund the spinoff of NovaCopper to the company’s shareholders.
Novagold has a market cap of about $1.4-billion while NovaCopper is worth about $100-million.
Novagold said Tuesday plans to significantly reduce spending this year, to a total budget of $41-million, including $15-million (U.S.) for its half of the cost at the Donlin gold project in Alaska, a joint venture with Barrick Gold Corp.
It also plans to spend $8-million (Canadian) for its half of the $16-million budget for Galore Creek copper and gold project in British Columbia, a joint venture with Teck Resources Inc.
In a separate announcement, NovaCopper reported a $31-million loss for the year ended Nov. 30, or 67 cents per diluted common share. That followed a restated loss of $11.3-million or 44 cents per share in the year-earlier period, before it was spun off from Novagold in April 2012.
The year-to-year increase included expanded exploration of the company’s Upper Kobuk Mineral Projects in the Ambler mining district of northwest Alaska.