POTENTIAL - DO THE MATH Friday thoughts from a non-geologist. The potential downside is important - our hard-earned investment money. But I like to also consider the UPSIDE.
That conference Novo put on last night was a HUGE winner. QH trotted out a SERIOUS team of individuals who left current jobs to take on this project. This is a REAL COMPANY, not some group of charlatans (I've known a few).
If QH turns out to be right about Novo's holdings being comparable to the Witwatersrand (the Wit), then the numbers are indeed unbelievable (read not sane), yet staggering as far as potential is concerned.
1.5 Billion Ounces
x 800.00 per ounce profit at current prices
/ 200 Million shares (approx)
= 6,000.00 per Share - Huh?
Yes, it has taken 100 years to get the approx. 1.5 Billion ounces out of the Wit, but consider the following:
(1) The Wit deposit is 56 km long and 10 km wide - total area of 560 sq km. In contrast, Novo has 14,000 sq km of prospective land, about 25 times the size of the Wit.
(2) It is estimated that the Wit has yet another 1 Billion ounces to recover, albeit at depth which is more and more expensive to recover.
(3) The average grade at the Wit was 5-6 ounces, much higher than the 2-3 ounces we have sampled. However, the SORTER technology could be the GREAT EQUALIZER (or better in my view) - and will increase head grade exponentially, thereby also decreasing average AISC.
The DILUTION and time saved by the purchase of the Millenium Mill cannot be overstated. It takes a BRAIN to be a geologist AND a CEO - QH who worked for Newmont can obviously domore than one thing at a time. Some can, some can't, but QH can.
On top of all that, QH has found ways to get Novo invested in various other companies and in at least one different discipline (3d printing, are you kidding me?), all of which are turning out to be VERY successful. Our investments are now themselves worth $81 Million, New FOund GOld growing in leaps and bounds. I'm starting to thing QH should be the world president of the Mensa Society.
The train is leaving soon. Yes, there will be ups and downs along the way, but it is happening! Buy your tickets while you can still get them at these prices.
May the bashers "find peace".