Novo Resources Corp T.NVO

Arttf share analysis posted by ZOULOU on HC

[Skytronsma]

1. "I note that there has been considerable commentary on this topic, which at best is innuendo and at worst misleading.
   
   So the first question we need to ask ourselves is what is the context of this nebulous commentary, specifically what event started it on the threads of HC. I note that HH Sheikh Maktoum Hasher was invited to join the Board as announced to the ASX on 26 October 2017. We now should ask ourselves why this might be important. I will not dwell on the Pilbara gold rush with ARV at its very centre, there has been enough said on this already here and elsewhere in the media, instead I will focus on the fact that this particular Board appointment gives ARV considerable credibility with all due respect to David Lenigas (DL), who obviously is the instigator. DL clearly understands that ARV needs to put its past management history behind it and he has seen to it that the Board has been completely renewed for the better.
   
   Next we must ask ourselves who would benefit from spreading rumours that muddy the waters on whether ARV is capable of taking this project forward. An examination of the Top 20 shareholders is required to attempt to identify the main players at the top table, which can be found on page 67 of the Annual Report. We know that Dubai interests increased their holding in ARV to over 50 million shares as advised to the ASX on 24 July through their vehicle Exchange Minerals, which has absolutely nothing to do with FZE Cass and colourful Melburnian figures as suggested by others on HC. The list on page 67 of the Annual Report is dated 14 September and therefore includes all the capital raising and shares issued on the exercise of options maturing on 29 September 2017, the total amount of shares outstanding at that date agree with the last ASX 3B announcement on 13 September. The options outstanding 0n 14 September, see page 68 of theAannual rRport, amounted to around 26 million, almost all of which were exercised, with only 310,000 odd expiring unexercised.
   
   We can note that Fox Resources who had 28 million shares released from escrow on 15 August as per ASX announcement only had 13 million left by 14 September. Fox Resources have probably used the proceeds to pay off their creditors, they sold the Radio Hill plant to ARV at what can only now be described as  a knockdown price to meet obligations they could not otherwise fulfil. Again well done DL, who has secured a key asset in unlocking the potential of the Wits 2.0 story in the Pilbara as it unfolds in the near term.
   
   Coming back to Exchange Minerals it will not have escaped everybody's notice that their holding has fallen from over 50.5 million shares on 24 July to 36.5 million on 14 September, but on 19 September ARV raised it last capital raising amounting to $ 12 million @ $ 0.20, some of which went to unspecified institutions, which could well have included Exchange Minerals. This capital raising also brought Sprott onto the register with 20 million shares and Global Investment Strategy with 15 million shares; the latter having participated in 3 capital raisings by ARV totalling over $ 16.5 million (20 million shares @ $ 0.075 on 17 July, 23.67 million shares @ $ 0.1266 on 4 August and finally 60 million shares @$ 0.20 on 19 September). The intensity and repeated capital raisings, each larger than the previous one, would normally trash the share price of a junior exploration company beyond redemption, yet here we are with ARV setting new all time highs on volume. This speaks volumes of the strong demand for ARV shares rather than weak finishes such as on Friday last.
   
   The most recent ASX 3B announcement puts shares on issue at 534.6 million, this gives Sprott 3.68%, Exchange Minerals 6.72% on the basis of the last published Top 20, Armangael 6.69%, DL with all performance shares allocated 6.25%. It is not possible to see whether Sprott has bought shares on the market, but it would be fair to assume he has in view of his extensive commentary of his intentions; these holdings are likely cloaked behind nominee holdings, which litter the Top 20 list. The largest interest, Pershing Nominees Indian Ocean a/c, holds 8.75%, but has failed to lodge any substantial holding notice to the ASX; as have HSBC Nominees Australia holding 7.17%, BNP Paribas IB Retail holding 6.77% and Citicorp Nominees holding 5.64%. For the sake of completeness FZE Cass hold 1.39%, hardly a key player at this juncture, nor have they been offered a seat on the Board.
   
   I think it is important that holders keep their heads and wits about them whilst it might appear that all around them are losing theirs. Price action in the last 10 days has been disappointing despite important very positive announcements: HH Sheikh Maktoum Hasher, and the fine/coarse gold, not nuggets, throughout the conglomerate horizon, which bodes well for the economic viability going forward. I do not want to rekindle the polemic debate on nuggets with HC posters, all the arguments for and against have already been aired at length. I respect healthy debate and for this reason feel Eshmun has provided constructive comments, even if some consider his contribution to be doggedly academic and persistent, both of which are excellent qualities when undertaking in depth analysis. I have focussed on the bread and butter fine/coarse gold as it is this aspect that backs the Wits 2.0 theory; the nuggets are the rich icing and the cherry on the cake.
   
   I stand by my opinion that vested interests are at play with blatant manipulation of the share price as each of them jockeys for position. In the interest of transparency I wish to declare that I am a holder of ARV and VXR rather than a trader, therefore I seek to protect and defend my stake from spurious innuendo and instead focus on stated facts; each statement that has emanated from ARV/Novo appears to confirm the Wits 2.0 theory. I would not want to swap my current holding, which I consider to be undervalued in comparison with Novo's capitalisation, for a holding in Novo that I consider to be grossly overvalued in the near term as they are not yet able to explore their own 100% tenements let alone process anything they find. Naturally time will tell, but for now the key is Purdy's Reward and the remainder of that tenement, not forgetting Mt Oscar Wits."
   
   
   
   Dispels a lot of misinformation re Artemis in my mind.  SKY

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