A leadership change is currently underway at Novo Resources (TSX: NVO). The firm this morning indicated that chief executive Rob Humphryson has resigned from his role with the company, including his role as a director.
Humphyrson had served in the role since June 2017, with his appointment at the time resulting in Dr Quinton Hennigh moving to the role of Chairman. In the time since, Humphyrson lead the transition of the company from the exploration stage to the production stage.
While he lead the company from exploration to production, investors haven’t exactly been rewarded in the time since. The company hasn’t made new highs since touching $4.16 in July 2020, and the firm hasn’t exactly operated as it expected to at its Beaton Creek operation in Australia.
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2021 saw the company record total cash costs of US$1,488 per ounce sold during the year, while all-in sustaining costs came in at US$2,494 per ounce – which doesn’t exactly equate to a money making venture. Nor does it resemble the cash cost estimates included in the preliminary economic assessment completed at the time, which called for year one cash costs of $1,048 per ounce.
Figures were likely off as a result of production estimates versus actual production, with the first year expected to produce 83,000 ounces versus the 49,364 produced in reality. This can be blamed on head grades, which were estimated to be 2.06 g/t gold, which instead came in at just 1.25 g/t gold.
A reason for Humphyrson’s departure was not provided.
Serving in the CEO role on an acting basis as a result of the departure is that of Mike Spreadborough, whom is currently also executive co-chairman of the company. It is presently unclear if an executive search is underway.
The development follows yesterdays news that the company would be selling its entire stake in New Found Gold Corp (TSXV: NFG) to that of Eric Sprott for gross proceeds of $125.9 million. That sale is to occur in two tranches, and enables the company to be able to pay off certain debts.
Novo Resources last traded at $0.91 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.
