RE:Nvo and IVSHi Absoute27,
I understand the attraction in comparing Inventus to Novo since they both have very promising paleo-placer projects in jurisdictions which have both drawn comparisons to Witswatersrand. However, your comparison largely rounds up Inventus and dramatically rounds down Novo in that effort. I'm assuming you're only casually familiar with Novo because anyone who knows all of the developments in that company wouldn't make any comparison to Inventus at these stages of their development.
I hold sizable positions in both companies and follow each very closely. Anyone familiar with Novo knows that it is far more than "a more advanced project similar to [Inventus']”. Without getting into too much detail, from purely a land package standpoint alone, the two are not even close. Pardo is 190 sq km and Sudbury 2.0 is 240 sq km. Meanwhile, Novo holds 14,000 km in Western Australia of both conglomerate and orogenic lode gold mineralization. That is more than 32 times the size of Inventus’ holdings.
But what dramatically separates Novo from Inventus, is that Novo acquired the Nullagine Processing Facility at Beaton’s Creek which has ~900k of indicated and inferred resources that are shovel-ready to process. Novo will begin gold production in February, transforming them from explorer to producer and provide revenues to fund all of the exploration of their massive holdings. Novo’s vast tenements will provide decades of feed to the mill.
Additionally, Novo has a portfolio of investments in other companies, including 15 million shares of New Found Gold, which is approximately worth C$78 million.
And while I love that Inventus has the backing of Rob McEwen, Eric Sprott and Osisko, Novo can boast an equally impressive group of investors in Sprott, Mark Creasy, Newmont Gold and a $30 million joint venture with Sumitomo Metals and Mining.
Inventus’ properties are very promising and the company has a lot of upside…has for a while. Which is why I'm invested here. But it could easily drop to .08 before it sees .50 which makes it a riskier investment than Novo. The company is small, slow to execute, and is perpetually cash-strapped. These factors have stunted Inventus’ growth since McEwen made his first investment. And every time there is a financing, shareholders get further diluted which impacts the company’s upside. It will take a lot more drilling and exploration and cash to prove up the Pardo targets and that weighs on the company’s future despite the promising exploration targets. Meanwhile, Novo’s future is extremely bright with a solid floor starting February as they’ll be able to fund their operations going forward with revenues from gold production.