What majority of people in the mining space sees:
(I added some of the recent developments, in green text)
If you do lazy analysis you will keep getting surprised by the fact that the actual size of the ice berg has been growing a lot.
Just a few recent examples…
- “Novo Sells Part of Blue Spec Project to Calidus Resources for Cash Consideration of A$19.5 Million“ – Source
- Novo’s equity stake in New Found Gold is currently worth C$40.2 M after the company hit high grade gold in holes 2km from the superb hit in the Keats zone…
- “New Found Intercepts 41.2 g/t Au over 4.75 m and 25.4 g/t Au over 5.15 m in New High-Grade Discovery at the Lotto Zone, Located 2 km North of the High-Grade Keats Discovery”
- … And the 100,000 m drill campaign has just begun in the district scale land package up in Newfoundland.
- Novo owns 12.57% of Elementum 3D (“E3”)which recently got its patent granted for basically 3D printing metals in multiple jurisdictions
- “ELEMENTUM 3D GRANTED PATENTS IN U.S., CANADA, AND AUSTRALIA FOR REACTIVE ADDITIVE MANUFACTURING TECHNOLOGY“
- Prior to the patent being granted E3 got an investment from the circa $40 B entity known as Sumitomo Corporation
- Elementum 3D in the news recently…
We are advancing an additive manufacturing technique to 3D print rocket parts using metal powder and lasers. This innovative method could bring down costs and lead times for producing large, complex engine components.
— NASA Technology (@NASA_Technology) September 11, 2020
Keep in mind that these are just three of many examples, of value being created for Novo, which the majority of market participants are totally unaware of. The next “surprise” might be just how well and how impactful the ore sorting tech really is. Stay tuned…
If you think Novo’s intrinsic value is explicitly contained in the current version of Beaton’s Creek then it is beyond clear that you have no idea what you are talking about and will keep getting surprised by all the “unseen” value being created beneath the surface. Remarkably this seems to be the consensus which in turn opens up an opportunity for the people who have done their home work and knows what one is actually buying when buying a piece of Novo Resources. Don’t be the lazy investor who keeps getting surprised by the fact that Novo has more irons in the fire than any other junior around and be looking at Novo like it is a one trick pony. I am expecting a lot more of these positive developments to come from multiple areas over the coming months and years.
It is impossible to constantly have a all of Novo’s avenues for value creation in mind at any given time. But that is why investing should be based on thorough due diligence and a rational investment case and not on your impulses. Even though market participants with a short attention span just views Novo as a one trick pony doesn’t mean that you should, obviously. Try to look at the big, total picture of any investment case and make up your mind in peace and quiet. Listening to the noise of the “blind” will make sure that you have no edge in this market.
If you can’t spot the fish at the table then YOU are the fish.
(Note: This is not a buy or sell recommendation. This is not investment advice and I am not a geologist. This article is highly speculative, forward looking and I can’t guarantee accuracy. Always do your own due diligence. I own a lot of shares of Novo Resources which I have bought in the open market and am thus biased. Novo is a passive banner sponsor on my site. )
The Hedgeless Horseman
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