Added a little NovaGold (NG)
In my quest to add some exposure to gold as an asset class to my portfolio I’ve opened a tracking position in another stock with interests in gold mining but, like with Aberdeen International, there is a bit of a twist. NovaGold, which is a holding of both Klarman and Paulson, is in the process of spinning off their copper mine holdings at the end of April. The interesting part of this is that Van Niewenhuyse, the CEO of NovaGold through this past January, will be moving over to become CEO of NovaCopper when it is spun off at the end of April, and the new CEO of NovaGold is a veteran of Barrick Gold. The Barrick Gold connection is interesting because they are the other 50% holder in the Donlin Gold project, NG’s largest investment. Inelegant Investor at Stock Spinoffs thinks that this corporate restructuring might presage closer cooperation with Barrick or even a Barrick buyout of NG, and I would tend to agree. In any case, with Tom Kaplan, Paulson and Klarman holding substantial positions in NovaGold, I think shareholders interests are well protected, and we are likely to see some valuing enhancing transaction in the mid to long-term.
As I noted, this is a tracking position, and I hope the bulk of my purchases can be made at lower prices. I’m not yet sure whether I want to purchase a full position before or after the spin. It’s all a matter of price.