Novagold Insider Action: Kaplan’s $12.24 CAD Option Exercise Boosts Long‑Term Confidence

Insider Activity Spotlight: Novagold Resources Inc.

Novagold’s most recent public filing, dated 2 February 2026, documents that owner Thomas K. Kaplan exercised a stock‑option grant for 36 600 shares at the prevailing market price of $12.24 CAD. The exercise required no cash outlay but increased the number of shares subject to option conversion, thereby enhancing Kaplan’s potential upside should the share price recover from its recent 23 % weekly decline. The vesting schedule—one‑third each year from 2027 to 2029—provides a long‑term incentive that aligns Kaplan’s interests with those of the wider shareholder base.

Market Implications of the Option Exercise

The immediate impact on the share count is modest; the exercise does not alter the existing ownership profile. Nevertheless, it signals confidence from a key insider, especially when considered alongside the broader wave of insider buying observed in January 2026. Executives such as Elaine J. Dorward‑King acquired more than 35 000 shares during that month. Such concentration of purchases, even in the face of a weak week‑to‑week price trend, often indicates management’s belief in forthcoming operational milestones. A prime example is the revised cost estimate for the Donlin project released on 25 January, which could enhance the company’s project economics and support a positive outlook.

Kaplan’s Historical Buying Pattern

Kaplan’s transaction history demonstrates a gradual, long‑term accumulation strategy. Purchases of deferred share units in September and December 2025 totaled over 3 300 units, leaving him with approximately 117 000 shares after the latest exercise. Unlike many insiders who liquidate to lock in gains, Kaplan has consistently bought shares and converted deferred units into stock‑option positions. This preference for leveraged exposure underscores a sustained belief in Novagold’s value creation potential, particularly if its gold projects deliver profitable results.

Company‑Wide Insider Activity Snapshot

Other insiders have engaged in both buying and selling common shares. On 27 January, Elaine J. Dorward‑King purchased 35 200 shares while simultaneously selling 33 311 and 11 shares, a pattern that may reflect strategic rebalancing or a response to short‑term price volatility. Executives such as Kyle Hume D. and Richard Alan Williams also displayed a typical mix of portfolio management and performance‑share unit liquidation. Collectively, these actions illustrate a cohort of insiders who actively manage their holdings while maintaining significant exposure to the company’s upside.

Implications for Novagold’s Future

Novagold sits in a transitional phase, characterized by insider buying, option exercises, and a recent swing toward its 52‑week low. With a market cap of roughly $4.8 billion CAD and an ongoing exploration program that spans gold, copper, and silver properties, the company represents a potentially attractive long‑term play for value investors. However, the high volatility of the stock and the recent yearly gain of 164 % highlight the speculative nature of mineral exploration. Investors should view the current insider activity as a signal of confidence, while remaining mindful of the inherent risks. Monitoring the vesting of Kaplan’s options and the performance of Novagold’s flagship projects will be crucial in determining whether insider optimism can translate into sustained shareholder value.