Novo: Latest Comments From the ex De Beers (CDM) Manager

I reached out to the ex De Beers manager, aka “Mr De Beers”,(One of few people in the world who actually can say they have hands on experience with a deposit such as Egina), in order to hopefully get some comments on his current view of Novo Resources…

His Response:

On to answering your letter: My thoughts remain the same.  Like most investors, I am patiently waiting for production start-up.  I am expecting them to have a few teething problems, which will test their ingenuity and tenacity.  It must be getting very hot in the Pilbara, which will also be a severe test for personnel there.  But I remain confident that they will overcome any obstacles with panache.  That is their style.   I can’t wait to hear about their initial results, as I know they have had to be conservative, so hopefully any surprises will be to the upside.  If I am excited, one can imagine how excited the Pilbara team must be.  I am also looking forward to the commissioning of the ore-sorter.

From a technical analysis view point, I remain very bullish.  I don’t think CAD5 per share is too far away.   Then once production gets underway with this rising gold price, it will be “Up, up and away” as Superman used to say.  One aspect I cannot fathom is the large number of shorts outstanding.  I cannot see anyone in his right mind shorting Novo; and when it starts moving up we may be onto a hallelujah short squeeze.

I think Quinton has played an amazing hand.  To have this deposit with all its potential and Sumitomo’s support and seemingly ring-fenced against any take-over, is masterly.  Then there is all the innovation he has introduced to keep costs down.  As an investor this is a once-in-a-lifetime opportunity.   Or as my son says, a no-brainer.  I continue to see this as a CDM (HH: CDM was De Beers flagship operation which mined diamonds hosted in Egina type gravels) investment on steroids.

Best regards,

The Hedgeless Horseman