Novo Resources (NVO) AI Stock Analysis

• Market Cap: C$28.37M
• Dividend Yield: N/A
• Average Volume (3M): 67.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 37
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Mining
• EPS (TTM): -0.19
• Shares Outstanding: 354,630,280
• 10 Day Avg. Volume: 59,178
• 30 Day Avg. Volume: 67,572
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -1.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Novo Resources is facing significant financial challenges, primarily due to its inability to generate revenue and negative profitability. While the company benefits from low debt levels, its weak cash flow and negative valuation metrics indicate substantial risks. The technical analysis also reflects a lack of positive momentum, making it a less attractive stock at this time.

Novo Resources Business Overview & Revenue Model

Company Description

Novo Resources Corp. (NVO) is a Canadian-based mineral exploration company primarily focused on the exploration and development of gold properties. The company is engaged in discovering and developing high-quality gold assets in Western Australia and has a significant land package in the Pilbara region. Novo Resources aims to unlock the potential of its vast landholdings through innovative exploration techniques and strategic partnerships, positioning itself as a key player in the gold mining sector.

How the Company Makes Money

Novo Resources makes money primarily through the exploration and potential development of gold resources. The company generates revenue by discovering economically viable gold deposits and advancing these projects towards production, which can eventually lead to revenue from gold sales. Additionally, Novo Resources engages in strategic partnerships and joint ventures with other mining companies to leverage its extensive landholdings and exploration expertise. These partnerships can provide funding and technical support, thereby facilitating project development and exploration activities that may lead to future revenue streams. The company may also generate income through the sale or optioning of its exploration properties to other mining entities.

Novo Resources Financial Statement Overview

Summary

Novo Resources faces significant challenges with no revenue generation in the TTM period and negative profitability metrics. Despite a low debt-to-equity ratio, indicating minimal leverage risk, the company's cash flow situation, while improving, is not yet strong enough to offset the operational difficulties.

Income Statement

Novo Resources has shown a significant decline in revenue over the years, from $112.2 million in 2021 to zero in the TTM period. This has led to negative margins, with a TTM net income of -$108.8 million. The company's revenue growth rate is severely negative, and the EBIT and EBITDA margins are also negative, indicating operational challenges and poor profitability.

Balance Sheet

The company's balance sheet shows a strong equity position with a debt-to-equity ratio decreasing from 0.34 in 2020 to a low 0.006 in the TTM period. Although debt levels are low, the equity ratio has declined, indicating a reduction in asset base. The return on equity remains negative due to consistent net losses.

Cash Flow

Cash flow analysis reveals a turnaround in operating cash flow from -$47.4 million in 2023 to $5.9 million in the TTM. However, free cash flow remains weak, and the free cash flow to net income ratio is negative due to continued net losses. The company has shown improvement in cash flow management, but overall cash generation is still a concern.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Mar 2020
Income Statement		Total Revenue
0.00	0.00	92.04M	112.24M	0.00	0.00
	Gross Profit
-1.62M	-5.96M	-23.64M	1.48M	-2.07M	0.00
	EBIT
-25.05M	-45.38M	-122.20M	-68.17M	-29.32M	-9.84M
	EBITDA
-27.93M	-43.05M	15.52M	39.87M	-22.36M	-9.16M
	Net Income Common Stockholders
-108.82M	-127.81M	-105.42M	-704.00K	-27.80M	-11.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.92M	11.76M	48.08M	32.45M	40.69M	28.79M
	Total Assets
156.66M	106.45M	256.16M	462.68M	371.44M	158.05M
	Total Debt
0.00	1.61M	6.60M	80.49M	75.11M	4.71M
	Net Debt
-42.83M	-10.00M	-41.33M	48.14M	34.62M	-24.00M
	Total Liabilities
10.41M	21.53M	68.19M	148.42M	126.97M	9.65M
	Stockholders Equity
146.25M	84.92M	187.97M	314.26M	244.47M	148.40M
Cash Flow		Free Cash Flow
7.34M	-49.13M	-51.66M	-38.33M	-27.76M	-27.03M
	Operating Cash Flow
5.93M	-47.43M	-46.19M	-19.66M	-10.73M	-7.75M
	Investing Cash Flow
10.67M	-1.47M	119.69M	-7.76M	-77.83M	-21.94M
	Financing Cash Flow
582.00K	12.83M	-57.87M	19.63M	100.41M	15.98M

Novo Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NVO, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.09, and below the 200-day MA of 0.09, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.95 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NVO.

Novo Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUG	80 Outperform	$9.67B	17.84	39.23%	2.00%	34.41%	139.62%
WDO	79 Outperform	C$2.16B	26.50	17.33%	―	56.15%	―
MUX	69 Neutral	$369.94M	3.35	24.18%	―	47.02%	―
OR	56 Neutral	$4.84B	220.07	1.33%	1.02%	1.62%	-232.31%
BTO	54 Neutral	$4.96B	―	-18.54%	5.99%	-4.17%	-318.18%
Sector *	47 Neutral	$2.64B	-4.00	-31.55%	3.33%	2.93%	-29.90%
NVO	36 Underperform	C$28.37M	―	-145.85%	―	―	―

Novo Resources Corporate Events

Novo Resources Shifts to OTCQB Market

Novo Resources has transitioned its trading platform from the OTCQX to the OTCQB market in the U.S., enhancing its engagement with the American investment community. This move aligns with the company’s growth stage and aims to increase visibility and trading efficiency. Novo continues to focus on gold exploration in Western Australia and aims to create long-term value for its stakeholders.

Novo Resources Expands with New Gold Projects

Novo Resources has expanded its exploration portfolio by acquiring significant interests in two high-grade gold projects in New South Wales, Australia. The projects, John Bull and Tibooburra, are poised for substantial gold discovery and align with Novo’s strategy for high-potential exploration. This move complements Novo’s recent landholding consolidation in Western Australia, further strengthening its position in the gold market.

Novo Resources Expands Exploration in Western Australia

Novo Resources has expanded its exploration portfolio by acquiring a significant land position in Western Australia’s Onslow District. The new Toolunga Project, covering 1,524 sq km, is deemed highly prospective for precious and base metal discoveries and aligns with Novo’s growth strategy. This acquisition offers a strategic advantage in an under-explored area with strong potential for new mineral discoveries.

Novo Resources Intensifies Pilbara Exploration Efforts

Novo Resources is ramping up exploration across its Pilbara projects, with a focus on advanced drilling activities at Balla Balla and Sherlock Crossing. The company is well-funded following a recent asset sale, allowing it to intensify exploration efforts and capitalize on the region’s potential as a major gold production hub.

Novo Resources Sells Quartz Hill Stake

Novo Resources Corp. has sold its remaining 20% interest in the Quartz Hill Joint Venture along with its gold and silver rights to Austroid Australia Pty Ltd for A$850,000. This move aligns with Novo’s strategic shift to focus on gold exploration in the Pilbara region, while maintaining exposure to battery metals through the Harding Battery Metals Joint Venture.