Novo Resources Corp T.NVO

Alternate Symbol(s): NSRPF

Metals & Mining Gold

Novo Resources Corp. is engaged in evaluating, acquiring, exploring, and developing natural resource properties with a focus on gold. The Company explores and develops its prospective land package covering approximately 7,500 square kilometers in the Pilbara region of Western Australia, along with the 22 square kilometer Belltopper project in the Bendigo Tectonic Zone of Victoria, Australia. The Company operates through two segments: care & maintenance operations and exploration operations.

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Novo Resources Corp > OlieBollenBilly and the Wisguy

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Comment by Redflameon Jul 06, 2020 8:33pm

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Post# 31231605

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:OlieBollenBilly and the Wisguy

The following is taken from the MOY 2018 Annual Report:

Site rehabilitation

The Company records the present value of the estimated cost of legal and constructive obligations to rehabilitate and restore the operating location for areas disturbed by mining activities. The nature of rehabilitative activities includes dismantling operating facilities, closure of plant and waste sites and restoration, reclamation and revegetation of affected areas. The provision is the best estimate of the present value of the expenditure required to settle the rehabilitation obligation at the reporting date, based on current legal requirements and technology.

When the liability is initially recorded, the estimated cost is capitalised by increasing the carrying amount of the related mining asset. Over time, the liability is increased for the change in present value based on the discount rates that reflect current market assessments and the risks specific to the liability. This increase in the provision due to the passage of time is recognised as a finance cost in the statement of comprehensive income. Additional disturbances or changes in rehabilitation costs will be recognised as additions or changes to the corresponding asset and rehabilitation provision when incurred prospectively from the date of change.

Lot's of fancy talk for somebody's got to come up with $20 million for rehabilitation of the open pits, drill holes, and underground mine shafts plus leveling the mill. Now for all you invested in Novo, you're hoping that the mill won't be demolished for 50 years. Don't know if you agree Tx but for me, the Notes to financial statements leave a lot to be desired as to explaining to readers how the numbers were derived.

You can bet that the Australian Dept of Mines is very interested in who's going to clean up the mess. You can also bet the clean-up cost was a point of contention during negotiations. Because the negotiations have dragged on for so long, it looks like Novo will pick up the tab because it wants certain tenements that MOY has in addition to the mill. My guess is Novo will wind up paying around $75 for the mill and tenements it wants. Might be a good deal, might not. If you look at Beaton's Creek's resources, then the cost currently is $75 an ounce. Not bad at all, unless Sumitomo get's a 40 percent off the top. That would be almost like usury but nobody here seems to mind