Dave Kranzler | Novo Resources...Bonanza or Bust?

Dave Kranzler of Investment Research Dynamics returns to the show to discuss Novo Resources and their highly controversial Karratha region project. Novo has been the gold exploration story of the year with its market cap reaching over a billion dollars. In the US, over the last 6 months it went from US $.50/share to over $7/share. At publication of this podcast episode, it is trading around US $5.50/share. Novo is a gold explorer and developer in Western Australia. Based on trenching and ground samples which found gold at surface along with Novo’s ambitious geological theory, the market has gotten excited over the potential that the company may have discovered a gold deposit on the magnitude of the Witwatersrand basin in South Africa. The Witwatersrand basin has produced over 1.5 billion ounces of gold, which represents about 50% of all the gold ever mined on earth. The market usually gets excited over a 2 million ounce gold discovery but estimates for Novo’s potential discovery are much higher. Just this month (November 2017), newsletter writer and analyst John Kaiser said at the Metals Investor Forum that if the operating hypothesis is correct, Novo may have initiated a discovery of possibly 20 BILLION ounces of gold over 100,000 square km. Novo has about 7,000 square km of this area staked. In this show, Dave offers his opinion regarding Novo Resources and compares the market capitalization and assets of Novo to other gold mining companies both in Australia and elsewhere to asses if Novo is really a good value at its current share price. Dave also shares his thoughts regarding tax-loss selling, where he sees the price of gold headed based on the recent commitment of traders reports, and opportunities in the junior resource sector over the next months. Dave is offering MiningStockEducation.com listeners a free sample report of his Mining Stock Journal. To take advantage of this offer email Dave directly at [email protected] and mentioned you listened to him via the Mining Stock Education podcast and you would like to try a sample copy of the Mining Stock Journal. 0:05 Introduction of Topic and Guest 2:26 John Kaiser clip re: Novo’s possible 20B oz Au discovery 3:22 Dave’s analysis of Novo Resources 4:53 Comparing Novo Resources to other Gold Companies 11:27 Would you invest in any $1B market cap pre-revenue company? 14:01 Thoughts on the tax-loss selling season 17:13 Where is gold headed based on recent COT reports? 24:47 Can gold break out above $1,500 in 2018? 26:03 Opportunities in the junior gold sector in next 6 months 32:04 Info regarding a free sample Mining Stock Journal report