Novo Resources (NVO) AI Stock Analysis

• Market Cap: C$53.19M
• Dividend Yield: N/A
• Average Volume (3M): 322.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 75
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 354,630,280
• 10 Day Avg. Volume: 496,204
• 30 Day Avg. Volume: 322,941
• PEG Ratio: 0.02
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.69
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: C$0.17 ▲(43.33% Upside)

The score is held down primarily by weak financial performance (no revenue, ongoing losses, and persistent cash burn), partially offset by a strong technical uptrend and low leverage. Valuation is difficult to support due to negative earnings and no indicated dividend yield.

Positive Factors

Low Leverage / Balance Sheet Flexibility

Very low leverage materially reduces refinancing risk and preserves optionality for an exploration company. This balance sheet strength supports continued funding of geological programs, joint-venture negotiations or opportunistic asset transactions without urgent debt pressures over the next several months.

Asset-monetization Business Model

A strategy focused on advancing and monetizing exploration assets provides multiple durable value-realization paths beyond production. This optionality—JV/farm-outs, asset sales, spinouts or development—reduces binary risk and allows value capture through transaction-led milestones over months to years.

Improving Loss Trend and Cash Burn

Progressively narrower losses and reduced cash outflows indicate management is slowing burn and improving operational efficiency. That trend extends the company’s runway, lowers near-term financing pressure, and improves the ability to fund targeted exploration or advance deals over a multi-month horizon.

Negative Factors

No Reported Revenue

Absence of recurring operating revenue is a structural constraint: until production or meaningful transaction receipts occur, the company lacks self-sustaining cash generation. This makes funding exploration and converting resources into value dependent on external capital or asset deals over the medium term.

Persistent Negative Cash Flow

Consistent negative operating and free cash flow signals continued reliance on financing or asset transactions to fund activities. Over 2–6 months this raises dilution and execution risk, constrains the pace of exploration, and can delay or complicate joint-venture or development timelines.

Negative Return on Equity

A sustained negative ROE indicates capital deployed has not generated profitable returns, highlighting structural difficulty converting exploration investment into shareholder value. This persistent value erosion increases risk of future equity dilution or asset sales at unfavorable terms.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	92.04M	112.24M	0.00
Gross Profit	-921.00K	-2.15M	-5.96M	-23.64M	1.48M	-2.07M
EBITDA	-12.27M	-19.07M	-43.05M	15.52M	39.87M	-29.78M
Net Income	-15.67M	-23.23M	-127.81M	-105.42M	-704.00K	-27.80M
Balance Sheet
Total Assets	86.42M	85.27M	106.45M	256.16M	462.68M	371.44M
Cash, Cash Equivalents and Short-Term Investments	2.41M	10.80M	11.76M	48.08M	32.45M	40.69M
Total Debt	343.00K	427.00K	1.61M	6.60M	80.49M	75.11M
Total Liabilities	17.57M	15.78M	21.53M	68.19M	148.42M	126.97M
Stockholders Equity	68.85M	69.50M	84.92M	187.97M	314.26M	244.47M
Cash Flow
Free Cash Flow	-11.58M	-16.73M	-49.13M	-51.66M	-38.33M	-27.76M
Operating Cash Flow	-11.58M	-16.73M	-47.43M	-46.19M	-19.66M	-10.73M
Investing Cash Flow	10.72M	19.69M	-1.47M	119.69M	-7.76M	-77.83M
Financing Cash Flow	-2.79M	-3.81M	12.83M	-57.87M	19.63M	100.41M

Novo Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.13, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.67 is Neutral, neither overbought nor oversold. The STOCH value of 70.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NVO.

Novo Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WHN	55 Neutral	C$58.88M	-32.43	-3.80%	―	―	58.19%
LVG	53 Neutral	C$52.69M	-12.68	-27.62%	―	―	40.00%
NVO	53 Neutral	C$53.19M	-3.39	-21.84%	―	―	―
RDG	52 Neutral	C$40.57M	93.55	2.73%	―	―	―
BTR	50 Neutral	C$41.42M	-4.21	-67.80%	―	―	42.48%
QIM	47 Neutral	C$43.82M	-3.20	-82.25%	―	―	-107.64%

Novo Resources Corporate Events

Novo Resources Unveils 2025 Sustainability Report, Emphasizing Integrity and Environmental Commitment

Novo Resources has released its 2025 Sustainability Report, emphasizing its commitment to sustainable business practices through integrity, community development, and environmental respect. The report outlines the company’s initiatives and progress in ethical governance, employee and community support, and minimizing environmental impact, reinforcing its dedication to long-term value creation for stakeholders.

Novo Resources Unveils Updated Investor Presentation Highlighting 2025 Milestones

Novo Resources has released an updated corporate presentation detailing its exploration and development activities for its key gold projects in Australia. The presentation highlights recent drilling results, strategic priorities, and upcoming milestones for 2025, underscoring Novo’s commitment to delivering shareholder value through focused exploration and responsible resource development.

Novo Resources Unveils Promising Gold and Antimony Exploration Results in Pilbara

Novo Resources Corp. has reported promising exploration results from its Teichman area in the Egina Gold Camp, revealing high-grade gold and antimony findings. The company is advancing its exploration efforts with significant rock chip assay results, indicating potential for further development and drilling, particularly at the Sherlock Crossing prospect, which remains open at depth. These findings underscore Novo’s strategic focus on unlocking the gold and antimony potential in the region, enhancing its industry positioning and offering promising implications for stakeholders.

Novo Resources Advances Exploration at Tibooburra Gold Project

Novo Resources Corp. has announced significant advancements in its exploration activities at the Tibooburra Gold Project in New South Wales. The company has identified new high-grade gold targets through rock chip sampling, with notable results from Pioneer North and South. The exploration has enhanced geological understanding, supporting further drilling assessments. Additionally, Novo has secured an exploration license covering 350 sq km, consolidating its position in the region. The company is also progressing regulatory approvals for drilling at the John Bull Gold Project, indicating a strategic expansion of its exploration efforts.

Novo Resources Advances Exploration at Tibooburra Gold Project

Novo Resources has announced significant progress in its exploration activities at the Tibooburra Gold Project in New South Wales. The company has identified new high-grade gold targets through rock chip sampling, with notable results from Pioneer North and South. The exploration has improved geological understanding, supporting further drilling plans to assess high-grade shoots. Additionally, Novo has secured regulatory approvals for drilling at the John Bull project, with ongoing negotiations for landholder access, indicating a strategic expansion in its exploration efforts.