md&a Options:
There is a stock options plan in accordance with rule 701. This is particularly important because options are booked with the exercise price from the day before the allocation. A maximum of 15% shares may be issued on an undiluted basis. At Novo it's 10%. Approximately every 3 years there is a swings of options which are calculated in a comprehensible way. Addtional 4.6m options are vested with production of 10,000 oz and 6m with 60,000 oz. I would say those who have been around for a long time deserve it. In total there are currently approx. 15m outstanding options ... with the further 10m the boat would then be full (10% achieved)
salary
In 2020 it was about 6m options, fair value about 2.8m Cad. Q.H. earns 400k salary + approximately 250k fair value options per year. I think it's okay. He is listed as an insider in 16 companies. Of course, this leaves the question of possible personal capacities. On the other hand, there are of course a lot of synergies due to his extensive activities and Novo is his baby. It is clearly led by the CEO Humpryson. He works exclusively for Novo. The expenses are shown very transparently in the md & a for me to understand. Hidden costs in loopholes such as consulting costs and travel expenses are kept within limits.
Insider fillings (sedi)
Q.H.
Current common shares: 3,160,000
Current stock options: 2.4m
opening balance: 1m common shares
He bought these shares very cheaply in the early days. The last decent pieces around the 2.5 cad. In total, he only invested around 400k of his own money and he got this back by redeeming the warrants (2013). Except for this 2013 deal, he has not sold any shares, nor has he sold any options on openmarket which are already well in the money. According to Tx from stockhouse, the share of its total portfolio is more than 50%. Of course you have to put this into perspective, as stated above.
Lau
Current common shares: 279,000
opening balance: 350,000
humphryson (since 2017)
Current common shares: 60,000
Current stock options: 2.5m
opening balance: nill
Ontario Ltd. (controlled by sprott)
current common shares: 17.6m
not a single sale
The first 9m shares at approx. 0.80 cad. 1.5m shares were bought between 4 and 8 cad in rush 2017.
About 300k shares were sold in 2020 through the Sprott foundation. Current status approx. 5.3m. But this may well have tax reasons
.
Mark Creasey
current stock common shares: 9.1m to 0.90 cad
no fillings the last few years
Newmont
entry: 17.2m common shares
current common shares 5.9m
no sales late than 2017
CONCLUSION:
Corporate OKAY for me. But I will keep an eye on the options policy. Warrant structure very good, 19m at 4.40 cad. I rate the multiple employment relationships at Q.H. as slightly negative. Still, Novo is his baby. Quinton is the captain, Humphryson is the helmsman. Q.H. believes in Novo, Sprott believes in Novo. I believe in Novo. Something I am still missing is Sumitomo's commitment. Earn In expires in early 2022. So far, about 22m USD have to be invested.
sorry for bad translation per google ;-)
Peter