Novo Resources – Answering your questions on the current mining at Beatons Creek, recent financing, and upcoming drilling

May 4, 2021

Quinton Hennigh, President and Chairman of Novo Resources (TSX:NVO – OTCQX:NSRPF) joins me to answer a lot of your questions that all came in after our last interview and financing news. We start with a production update from Beatons Creek. This ties into questions on the recent financing and what work will be undertaken at Beatons Creek as well as a couple of the other properties the Company holds.

If you have any follow up questions for Quinton regarding Novo Resources please email me at If we missed any questions that you sent in, I apologize. Please remind me for the next interview.

Click here to visit the Novo website and read over the recent news.

    May 04, 2021 04:06 PM

    Is Inflation Transitory?

    May 4, 2021 by Jay Taylor

    “Peter Boockvar, Chief Investment Officer of Bleakley Advisory Group, visits for the first time and Chris Taylor of Great Bear Resources will update us on the growth of that company’s tier-one gold discovery in Ontario. Quinton Hennigh will also provide an update on the production progress being made by Novo Resources’ Beatons Creek project.”

      May 04, 2021 04:17 PM

      While the Fed claims it will be transitory #inflation….

      Dr #Copper made a new all time high again today $4.56. #Lumber has been ratcheting higher, #Platinum and #Palladium are running higher, #Oil & #Lithium prices are on the move higher again, #Zinc and #Lead have had a nice bump, #Nickel has been surging, #Iron has been strong, and many of the Soft Food #Commodities have been rocketing up….

      When these components start to impact the prices of goods and get paired with rising wages, it will lead to prolonged Cost-Push Inflation.

      There is nothing “transitory” about it central banksters… and once again, they’ll be scrambling to raise rates in due time and will be classically “Behind The Curve.”

    May 04, 2021 04:48 PM

    Novo’s shares of NFGFF are now worth over $100 million !!!

      May 04, 2021 04:36 PM

      Bonzo – don’t say that too loud, or all the haters that wished Novo could have sold their New Found Gold shares (even though they couldn’t have), instead of diluting Novo holders, may have an epiphany at what a wise investment it was for NVO holders. 😉

    May 04, 2021 04:59 PM

    Own Novo and listened to this, and it all came across as information that doesn’t move the needle, one way or the other. Would like updates with definitive information that is actionable.

      May 04, 2021 04:32 PM

      On the contrary, it was valuable to hear Quinton address some of the absurd conspiracy theories and comments from the bashers, so it was more to set things straight in the marketplace. The interview was to clear up market rumors, not come up with some brand new and grand actionable eureka moment. Either people should be comfortable holding and buying more based on the updates from the company, or they should sell and move on to something that they do like.

      1) No they couldn’t have raised in advance or known what was coming until the recommendations came a few weeks back in the PEA from the third party experts, despite so many thinking they could have anticipated it. Check that one off the list.

      2) Dozens of posters here, at, and stockhouse whined and moaned asking why Novo couldn’t have sold their New Found Gold shares (which were up nicely again today), instead of diluting, and now they have their answer – They couldn’t even if they had wanted to, as many are still restricted, and even if they had sold them, Sprott’s debt covenants would have swept that money away towards paying the debt and it would not have funded the work that needs to be done.

      3) Bashers in many chat rooms keep talking about grade control issues and head grade numbers, and speculating about other such data that they have no earthly idea of knowing. As Q.H. stated, they had a few initial hiccups in mining (as it is a new method), but they’ve talk the team to how to visually inspect the geology as they are mining, and this has helped greatly in reducing waste rock. As he also mentioned, they are still in ramp-up phase for goodness sakes, and don’t have all the metrics yet. As he mentioned, by mid-year, they’ll have more metrics after they ramp up to commercial production and have more normal mining conditions achieved.

      4) Yes, they are still working to advance Karratha projects like Comet Well/ Purdy’s reward, and will be working on that in Q2/Q3.

        May 05, 2021 05:34 AM

        Everything said in this interview was not new information. already communicated to the marketplace previously. Expectations were set in interviews on this show that financing would not be required during production ramp up. That was proven to be untrue. Only thing that matters now is the company scaling up production to expected levels and margins soon.

          May 05, 2021 05:04 AM

          Quinton never said they’d never have to raise money again, and as he stated, they didn’t know about the suggestions coming out of the PEA until a few weeks ago, and the work was too urgent to wait for 6-9 months for the money to come from production. Any of the bashing from investors on multiple sites that they should have had a crystal ball and been able to predict the findings of the PEA before it was even completed were rubbish.

          Second, Quinton had not clarified why they could not sell the NFG shares until this interview (so that was new information), and since the comments kept showing up on multiple sites from here to to stockhouse from investors whining about why Novo couldn’t have sold their New Found Gold shares instead of doing the raise, the the question was addressed. That was new information to clear up any misconceptions retail investors have. Basically they couldn’t have sold their NFG shares, and even if they had, it would have gone to Sprott for debt and not funded the work that needed to be done. So we can put a fork in that narrative now.

          There were conspiracy theories for the last 2 weeks about the fresh rock producing too much acid once they got down their past the oxide ore, and many questions/concerns in the marketplace about their permitting for that, so Quinton addressed that, and it was a big nothing burger, even though retail investors were all worked up over concerns that don’t need to be there.

          In addition, there continued to be concerns, questions, and incorrect theories from retail investors about grade control, head grade concerns, or comments that their grade had changed and the company was purposefully holding back some kind of information from the market, which was simply untrue, so that topic was unpacked.

          Yes, the main initiative now is for them to execute on ramping up into commercial production, which they are well on their way of doing.

            May 05, 2021 05:11 AM

            Here’s a comment from over at of an investor that feels the interview cleared up a number of questions for them. I’m sure they weren’t alone:

            @Secretaryofthelowlands – “Great interview with QH from the Kereport. I got a lot of questions answered. Real life ramp up problems being explained clarifies a lot. I am confident things will work out. One suggestion to the lot of apparently jobless Australian Novo-haters roaming this message board. Do something positive for the Pilbara and start an assay-lab. They are needed and must be very profitable. “

            May 05, 2021 05:14 AM

            @lotionboy – “I loved when QH said they don’t have to do reverse circulation at Karratha. Ore sorting will be able to do the same thing. Music to my ears.”

            May 05, 2021 05:22 AM

            Great editorial from @Tradehead from today:

            @Tradeahead – “A look at NOVOs valuation”

            “There are many ways to skin a cat. And depending upon the type of investor you are, there are many ways to assess NVOs value.”

            “1. There is the 5-10 bagger approach, when looking at 14.000 m2 of land, “with gold in them thar swales”, potential for extremely low cost production, ore sorting, mill already paid for, Wits theory, etc. It is not tomorrow by any stretch of the imagination which is really the case with most juniors as building a mine really takes time which we all conveniently like to forget (on the left side of Lassonde curve). In NVOs case it still might be closer than many think, but still it is a long term potential. Let me estimate the potential “blue sky” value of NVO to 10-20 dollars a share.”

            “2. There is the cash cow, or discounted cash flow method, which I presented the other day, in which I estimated that what would seem a reasonable set of Q4 economics, multiplied by a reasonable multiplier due to vast 14.000 m2 potential is really 20x. The BC part of the valuation was estimated at 860 mio., with the other parts more conservatively estimated. In reality it is a range, not a fixed number. In the cash flow apporach, I give no value to blue sky potential, but recognize a base value of these assets nonetheless, so I end up with a 1-2 billion market cap estimate. Lets say a share price of 8,5 dollars a share.”

            “3. There is the “sum of parts” valuation in which we look a NVO as essentially not a going concern as the haters in here would like to see. I presented A “back of napkin” estimate that its parts could be sold for approx. 513 mio., even though the number could be honed further. That would imply a “value in case of failure” of 2,28 CAD per share. Now failure is not likely at this point in my estimate, but knowing one’s downside is always prudent in investing.”

            “4. There is Bob’s valuation, based on his “next book” on mining, centered around the man (Quinton) and his acumen, early boots on the ground, and the presumed cost structure of mining and beliefs about gold in the Pilbara. Quinton made fortunes in the past, for Newmont, for Kirkland, for investors in Crescats PM fund, in NFG, and probably will here too. I do not know Bobs number, but it is a good deal higher than the current share price for sure.”

            “5. There is HH’s assessment of the situation, centered around margin of safety of which there is plenty in NVO, a sum-of-parts analysis in case of success (as opposed to mine above which is a sum-of-parts analysis in case of failure), and phychological insight into his opponents state of mind, combind with a knack for odds. I dont know HH’s number (or range I should say), but it is much higher than the current share price.”

            “A. The joker. Then there is a scenario in which NFG, currently 24% of the market cap of NVO, would ten-bag towards being the next Kirkland Lake. If that were to happen, you could add 1,2 billion or 5 dollars of value to EACH of the various scenarios above.”

            “I could go on with about 14 different ways to assess NVOs real intrinsic value, but there is no need for that. Each will be in excess of the current share price.”

            “You could attach odds to these various scenarios for a future stock price depending upon which scenario you find more or less likely, and no matter how you are going to go about that, you will reach a number much higher than the current share price.”

            “Why?? NVO is extremely mispriced. There is just about no way in which NVOs share price will not be higher in the future, say 6 months from no. ”

            “This does mean that only a fool would short NVO with no real downside, only the shortsighted investor would sell NVO, and while shortsightedness is indeed extremely common amongst most investors, it is in fact quite uncommon amongst wealthy investors. A noteworthy divergence.”

            May 05, 2021 05:02 AM

            Somehow Novo’s share price decreased 25% and yet no one is to blame? No one made a mistake and what happened was not foreseeable at all? Sorry, not buying that story. Will we see $15 million in operating losses for Novo in the first half of this year? I need to be prudent (like many others) and know that the financial bleeding has stopped before I even think about averaging down.

            May 05, 2021 05:05 PM

            The dilution from the raise was only 5% and it was initially a $22 Million raise, and yet the stock dropped at one point by $120Million, which defies logic. That’s because it wasn’t logical, it was all investor emotions and sentiment.

            It’s pretty easy to see why Novo sold off 25% — fickle retail investors that came up with a number of reasons to have fear, uncertainty, and doubt. Yes, the company should have telegraphed the raise better, but they’ve explained it a number of times on a number of interviews, and yet the conspiracy theories and false narratives have persisted. Retail investors are often skittish, and looking for boogeymen that aren’t there, or overly enthusiastic and push valuations to ridiculous levels also divorced from logic. It isn’t the first time we’ll see this, or the last.

    May 04, 2021 04:33 PM

    gold hanging by a thread in here

    May 04, 2021 04:56 PM

    Few comments here. Interest has dried up, which is probably justified. I’m waiting for <$2.00CDN price tag.

    May 05, 2021 05:40 AM

    this morning I could’ve traded ea of my NFGFF shares for 4.4 shares of NSRPF. Now I can get just 3.5 shares of NSRPF for ea NFGFF. But NFGFF has drilled just 20% of its holes for this year and I think I’ll wait for the other 80%

    May 08, 2021 08:10 AM

    Ex you must own a lot of shares of NVO. The price of gold in last 5 weeks is up aprox 150.00. NVO is down 25% and they are digging up dirt.