Novo Resources (NVO) AI Stock Analysis

• Market Cap: C$35.46M
• Dividend Yield: N/A
• Average Volume (3M): 155.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 75
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 354,630,280
• 10 Day Avg. Volume: 122,315
• 30 Day Avg. Volume: 155,706
• PEG Ratio: -0.02
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.23
• 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

• Rating: 41 Neutral
• Price Target: ―

Novo Resources faces significant financial challenges with no revenue and negative profitability, which heavily impacts its overall score. Although corporate events signal potential growth, weak technical indicators and valuation metrics further highlight the stock's unattractiveness. Strategic initiatives are necessary to improve financial health and investor confidence.

Novo Resources Business Overview & Revenue Model

Company Description

Novo Resources Corp., together with its subsidiaries, engages in evaluating, acquiring, exploring, and developing natural resource properties in Canada, Australia, and the United States. The company primarily explores for gold deposits. Its flagship property is the Beatons Creek property located in the Pilbara region of Western Australia. The company was formerly known as Galliard Resources Corp. and changed its name to Novo Resources Corp. in June 2011. Novo Resources Corp. was incorporated in 2009 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Novo Resources generates revenue through the exploration, development, and eventual production of gold from its mining projects. The company primarily earns money by discovering and developing gold deposits, which can then be sold to refiners or through contracts with other mining companies. Key revenue streams include the sale of gold produced from its mining operations, as well as potential joint ventures or partnerships with other mining firms that may involve sharing exploration and development costs. Additionally, Novo Resources may enter into strategic alliances to leverage technology or expertise that enhances their mining efficiency, contributing to their earnings.

Novo Resources Financial Statement Overview

Summary

Novo Resources struggles with no revenue and negative profitability metrics. Despite a low debt-to-equity ratio indicating minimal leverage risk, cash flow improvements are insufficient to overcome operational challenges. Financial stability requires strategic enhancements.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	92.04M	112.24M	0.00
	Gross Profit
-2.15M	-5.96M	-23.64M	1.48M	-2.07M
	EBIT
-19.20M	-45.38M	-122.20M	-68.17M	-29.32M
	EBITDA
-19.07M	-43.05M	15.52M	39.87M	-22.36M
	Net Income Common Stockholders
-23.23M	-127.81M	-105.42M	-704.00K	-27.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.80M	11.76M	48.08M	32.45M	40.69M
	Total Assets
85.27M	106.45M	256.16M	462.68M	371.44M
	Total Debt
427.00K	1.61M	6.60M	80.49M	75.11M
	Net Debt
-10.26M	-10.00M	-41.33M	48.14M	34.62M
	Total Liabilities
15.78M	21.53M	68.19M	148.42M	126.97M
	Stockholders Equity
69.50M	84.92M	187.97M	314.26M	244.47M
Cash Flow		Free Cash Flow
-16.73M	-49.13M	-51.66M	-38.33M	-27.76M
	Operating Cash Flow
-16.73M	-47.43M	-46.19M	-19.66M	-10.73M
	Investing Cash Flow
19.69M	-1.47M	119.69M	-7.76M	-77.83M
	Financing Cash Flow
-3.81M	12.83M	-57.87M	19.63M	100.41M

Novo Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NVO, the sentiment is Neutral. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:NVO.

Novo Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	50 Neutral	$2.00B	-1.13	-21.16%	3.71%	2.15%	-30.95%
ABI	48 Neutral	C$40.32M	―		―	―	―
VIO	44 Neutral	C$32.85M	68.42	3.33%	―	―	―
JG	42 Neutral	C$30.67M	―	-15.27%	―	―	-15.56%
NVO	41 Neutral	C$35.46M	―	-25.75%	―	―	―
PHNM		C$38.49M	―	-5.04%	―	―	―
GFTRF		$25.05M	―		―	―	―

Novo Resources Corporate Events

Novo Resources Advances Exploration Projects in Australia

Novo Resources Corp. reported significant progress in its exploration activities during the March Quarter of 2025, with drilling commenced at the Balla Balla Gold Project in Western Australia and field campaigns completed at the Tibooburra and John Bull Gold Projects in New South Wales. The company remains financially robust with a cash balance of A$10 million and investments of approximately A$35.6 million. Novo is well-positioned to execute its exploration strategy, with a strong pipeline of news expected in the coming quarter, and is actively engaging with Traditional Owners to ensure heritage protection for its projects.

Spark’s Take on TSE:NVO Stock

According to Spark, TipRanks’ AI Analyst, TSE:NVO is a Underperform.

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.

To see Spark’s full report on TSE:NVO stock, click here.

Novo Resources Unveils New Investor Presentation Highlighting Growth Strategy

Novo Resources Corp. has launched a new corporate presentation to provide investors with an updated overview of its growth strategy and key projects within its Australian gold exploration portfolio. This initiative underscores Novo’s commitment to transparency and highlights the potential of its projects, aiming to deliver long-term value to shareholders. The presentation is accessible on the company’s website, reflecting Novo’s strategic focus on advancing exploration programs and enhancing its market position.

Spark’s Take on TSE:NVO Stock

According to Spark, TipRanks’ AI Analyst, TSE:NVO is a Underperform.

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.

To see Spark’s full report on TSE:NVO stock, click here.

Novo Resources to Launch RC Drilling at Tibooburra Gold Project

Novo Resources Corp. has announced plans to commence a targeted RC drilling program at the Clone prospect within the Tibooburra Gold Project in April 2025. The program aims to explore high-grade gold mineralization trends identified through recent mapping and sampling activities. This initiative is part of Novo’s strategy to capitalize on the exploration potential of the Tibooburra region, which includes historic goldfields and multiple mineralized trends. The project is expected to enhance Novo’s exploration portfolio and deliver significant value to shareholders.

Novo Resources Enhances Shareholder Services with New Registry Provider

Novo Resources Corp. has transitioned its shareholder registry services to Automic Pty Ltd, effective March 31, 2025. This change aims to enhance shareholder management through Automic’s secure online portal, allowing shareholders to efficiently manage their holdings. This strategic move is expected to streamline operations and improve shareholder engagement, reflecting Novo’s commitment to optimizing its corporate governance and stakeholder relations.

Novo Resources Launches Maiden Drilling at Balla Balla Gold Project

Novo Resources Corp. has announced the commencement of its maiden aircore drilling program at the Balla Balla Gold Project, targeting the Sholl Shear Zone’s structural complexities. This initiative aims to explore potential gold mineralization pathways, leveraging the area’s geological features, and could enhance Novo’s positioning in the gold exploration sector by uncovering significant mineral deposits.

Novo Resources Advances Exploration Amid Challenges

Novo Resources Corp. has completed geological and geochemical sampling at its Tibooburra and John Bull Gold Projects in New South Wales, with results expected in mid-March 2025 to guide future drilling. Despite potential delays from Tropical Cyclone Zelia affecting Pilbara Projects, Novo is progressing with exploration activities, including ongoing assessments at the Toolunga Project and advancing applications at the Cane River Project, signaling a strategic expansion of its exploration portfolio.

Novo Resources Enhances Exploration Portfolio and Financial Position

Novo Resources Corp. has strengthened its exploration portfolio through new deals and licenses, particularly in the Onslow District of Western Australia, with a focus on gold and base metal discoveries. The company has executed agreements for projects in New South Wales and continues its work in Victoria, alongside strategic transactions that have bolstered its financial position, indicating a robust outlook for future exploration and development activities.