Novo Resources Corp T.NVO

Why I'm still long

[Mineshack]

It's probably difficult for an interested investor to find Novo information on this board due to all the multiple user names one basher chooses to pollute the conversation with. We can't recognize a good post by the number of likes because that user likes itself. The ignore option is very applicable.

Hope that anyone interested in Novo's potential will find shareholders post and join the discussion.
 
Nullagine Gold Project
From my perspective, there's no certainty that Novo can create sustainable profit at Beaton's Creek. It depends on both the quality of the resources and management's ability to resolve issues. Neither have been proven entirely and I speculate both eventually will be.

Expecting we will soon see one of these three results:

• profit from the mill
• sale of the mill and a portion of the resource
• the mill placed on care and maintenance and a reduction of staff

 

Like most the rest of us, management and the crew need a job. Reputation is most important for high-profile managers and geologist like Quinton Hennigh. Therefore management does have incentive to either make this work or cut the losses.

The sale of New Found Gold leaves the company a lot of working capital. It seems to me that management is very unlikely to let that cash be wasted on a hopeless production operation when there's so much exploration potential within the company's claims.

Foolishness is always a possibility, but seems very unlikely.
 

Sumitomo and Egina.
Bogged-down with issues like Aboriginal agreements, Australian government, Covid and sorter development. With Sumitomo converting its rights to Egina into Novo shares, that seems to indicate Egina is further away from production than I hoped. But it also seems that Sumitomo believes there to be more immediate opportunity in having a general interest in Novo. I'm uncertain whether Novo will succeed or fail. But it does seem likely we will know before Sumitomo's twelve-month contractual hold period expires. Why would Sumitomo bother with this conversion if Novo is going to fail?

I wouldn't be too surprised if Sumitomo soon increases its position in Novo.
 

No doubt, an investment in Novo comes with a great amount of risk. Risk that is beyond my control. But, I try to take a reasonable person's point of view and with that, it seems very likely that management is capable and does intend to make this a success. Success with Novo could be very leveraged. I hold.
 
 

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[BootstrapBucc]

This post has been removed in accordance with Community Policy

[BootstrapBucc]

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[PulpCutter]

Because it's difficult for you to admit a mistake?

[Fabrix72]

Because you have been taken for a ride and you still don't realize it? 

[mortgages101]

Mineshack, correct the best option for BC is to be put on C&M. And Sumi is not buying any novo shares past, present or future. Don't get it twisted they solely took the shares to recoup as much as possible the small amount of funds they  put in at Egina. So no, they will not be buying any shares. They were burnt by Novo, and also 99% sure QH and Novo ask Sumi to finance the mill