NSRPF - Novo Resources: A Hefty Price To Pay For Indicated And Inferred Ounces
- Novo Resources completed a transformative acquisition in Q2, acquiring Millennium Minerals and its Nulaggine Facility which sits southeast 15~ kilometers southeast of Beaton's Creek.
- This has allowed Novo to fast-track production from its Beatons Creek deposit in Western Australia, where the company currently holds a 903,000-ounce gold resource.
- While this is great news as it finally gives investors a light at the end of the tunnel in terms of production, Novo is now significantly overvalued relative to peers.
- Based on a market cap of $592 million at US$2.55 and an enterprise value per ounce of over $500.00/oz, I see the stock as high-risk and an Avoid.
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Novo Resources: A Hefty Price To Pay For Indicated And Inferred Ounces