Overview of Novo Resources Corp. financial performance and operations

Novo Resources Corp. (ASX: $NVO) has released its condensed interim consolidated financial statements for the three months ended March 31, 2024 and 2023. The company reported a net loss before tax of $5,064,000 for the period, an improvement from the $16,079,000 loss reported for the same period in 2023. Operating cash inflows for the three months ended March 31, 2024, were $3,847,000, compared to outflows of $16,048,000 for the same period in 2023. Novo Resources Corp. had cash on hand and short-term investments of $13,460,000 at May 8, 2024, and $14,769,000 at March 31, 2024.

Executive commentary on financial performance and outlook

The Directors of Novo Resources Corp. are confident in the company's ability to continue as a going concern. They have prepared a cash flow forecast demonstrating that the company will have access to sufficient cash flows to meet its commitments and working capital requirements for the 12-month period from the date of signing the consolidated interim financial statements. The Directors are satisfied that the company will have sufficient cash to continue as a going concern, based on the cash flow forecast, operating cost assumptions, exploration costs, and capital expenditures, along with foreign exchange rates, and the ability to further realize marketable securities. The company's ability to manage forecast capital expenditure, determine forecast discretionary exploration expenditure, and realize additional liquidity from the potential disposal of certain assets at favorable prices are critical elements to managing cash flows and achieving the forecast cash flows and positive cash balance.

Summary of Novo Resources Corp.'s financial position and future prospects

Novo Resources Corp. has reported an improved financial performance for the three months ended March 31, 2024, with a reduced net loss before tax compared to the same period in 2023. The company's Directors are confident in its ability to continue as a going concern, supported by a cash flow forecast demonstrating access to sufficient cash flows to meet commitments and working capital requirements for the next 12 months. Novo Resources Corp. aims to manage forecast capital expenditure, determine discretionary exploration expenditure, and realize additional liquidity from potential asset disposals to maintain a positive cash balance. The company's cash on hand and short-term investments at May 8, 2024, provide a solid foundation for its operations and strategic initiatives going forward.