Shares of NovaGold Resources (AMEX:NG) plummeted 5.13% in intraday trading following the release of its fiscal second-quarter 2025 financial results, which fell short of analyst expectations. The gold exploration company reported a significant widening of its net loss, disappointing investors and triggering a sell-off.

NovaGold announced a net loss of $54,275 or $0.15 per share for the quarter, compared to a loss of $0.04 per share in the same period last year. This result missed the analyst consensus estimate of a $0.03 per share loss by a wide margin. The company attributed the increased loss primarily to a non-cash, non-recurring charge of $39,607 related to warrants issued under a backstop commitment agreement.

Despite the negative earnings report, NovaGold highlighted some positive developments. The company increased its stake in the Donlin Gold project to 60% and successfully raised approximately $234 million through a public equity offering and private placement. As of May 31, 2025, NovaGold reported a cash and term deposits position of about $319 million. However, these positive notes were overshadowed by the wider-than-expected loss, leading to the sharp decline in stock price as investors reassessed the company's near-term prospects.