Morning GS,Thanks for your post, and for challenging the balance...

Morning GS,

Thanks for your post, and for challenging the balance of my post. I am always cautious of falling in love with a single Company, and so it's good to hear an opposing view, and to review my own post with a critical lense. I have also respected your posts over time.

I don't feel as though I have 'pumped' the stock, I like to think my posting history has been fairly balanced and as things have disappointed us here (sunday cap raise, delayed timelines, MRE miss), I have been as frustrated as anyone. I believe in the fundamentals of the deposit, and the SS2 confirmed the high level economics, so I am not looking for the first bounce to exit. I can see the potential here for a significant re-rate, but as you say, in a bear market this could take a long time. I absolutely appreciate those investors looking for the exit, considering the SP decline we've seen.

I agree with most of your other points, and I can tell that you've had enough of the upsets and surprises, and that's completely reasonable (management need to do much better). However, I have a different view of the Gold price (we'll have to check back in 5 years..), and once/if it breaks above $2,000 it could see a strong run for a long time (+5 yrs) &, more importantly, a new price floor. This is my thesis, of course every analyst has a different view. On this basis, I believe the economics have a reasonable likelihood of remaining whole at the time of Production. This doesn't take away from management misses, particularly in terms of interviews vs. announced results, but after the MRE miss & market reaction, I feel as though we've reached a turning point and it is much less likely that we will see a similar upset. From an economic perspective, I'm buoyed by the fact that my own DCF modelling delivered similar results, and so on the basis that the technical approach is sound (and the cost estimates are solid) I think the SS2 results are strong.

I believe we are seeing a significant value gap for small caps in general, as we all know the big money is made through investing in the right projects/stocks at the right time (SP lows), holding with convinction, and biding your time. I believe Nova to fall into this basket, of course I am also looking elsewhere & investing in other opportunities, but my view of the value gap here only increases as we see the MC decline.

Perhaps we won't see eye to eye on this, and that's okay. At the very least, I hope you can see my views as relatively objective (acknowledging my confirmation bias) and we can retain a reasonable discourse.