Novo Resources Sees Losses Widen In Q3 Amid Beatons Creek Impairment Charges

There’s nothing quite like a Friday night earnings release.

Novo Resources (TSX: NVO) on Friday evening reported its third quarter financial results, posting revenue of $28.0 million for the last quarter of production at its Beatons Creek Project.

Revenue for the quarter came via the sale of 12,426 ounces of gold, an improvement over the 12,378 ounces sold in the second quarter, although revenues fell from $29.7 million to $28.0 million on a quarter over quarter basis. Gold was sold at an average price of US$1,728 per ounce during the period.

A total of 405,071 tonnes of material was processed at the Golden Eagle Plant during the quarter, which had an average head grade of 1.03 g/t gold, while recovery rates fell to 90.74%. A total of 13,137 ounces of gold were produced in the quarter as a result.

Cash costs for the quarter amounted to US$1,704 per ounce, while all in sustaining costs came in at US$2,292 per ounce.

READ: Novo Resources Places Beatons Creek Into Care And Maintenance After Revised Resource Estimate Released

Cost of goods sold meanwhile came in at $32.3 million, resulting in negative gross margins. Further adding to the losses were general and exploration expenses of $11.4 million, along with an impairment of $48.3 million related to the uncertainty of the Beaton’s Creek project.

All told, the company posted a net loss for the quarter of $59.1 million, along with Adjusted EBITDA of negative $7.9 million.

In terms of the balance sheet, Novo’s cash position fell from $74.7 million to $65.2 million on a quarter over quarter basis, while working capital fell to $46.4 million.

Novo Resources last traded at $0.45 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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