No Profits, No Cash Flow, No Problem

How much would you pay for a company with only one real asset which it does not own outright and no operations?  Currently, the answer is over $2.4 billion and rising.  Right about now, you are probably thinking that I am talking about some new tech company in Silicon Valley, but you would be wrong.  It's actually a mining company named NOVAGOLD RESOURCES (NYSEMKT: NG), and its one asset is a 50% stake in Donlin Gold LLC and the Donlin Gold project.

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The Donlin Gold project is a yet-to-be constructed gold mine in western Alaska.  In an interview on Real Vision, Thomas Kaplan, the chairman of NOVAGOLD, said that it would be "the largest single pure gold producing mine in the world".  The mine is expected to contain 39 million ounces of gold, and Kaplan stated that that gold would be "drawn from only three kilometers of an eight kilometer mineralized belt...moreover, that eight kilometers is only on less than 5% of the total land package." 

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Source Fool.com