NovaGold initiated with a Buy at Citi

Citi analyst Alexander Hacking initiated coverage of NovaGold (NG) with a Buy rating and $7 price target The firm points out the shares are well below its 2020 prices of around $10 when gold traded at less than $2,000 per ounce. As a pre-production gold miner, NovaGold provides high leverage to gold prices with significant execution risk, the analyst tells investors in a research note. Citi believes the Donlin Gold project in Alaska, of which the company owns 60%, has potential to be the second largest gold mine in the U.S.