On Wednesday, Novo Resources Corp (OTCMKTS:NSRPF) came into focus among investors in a big way after it addressed a letter to its shareholders. The letter seemed to have come as a reassuring trigger for investors as investors piled on to the Nuvo stock and sent it soaring by as much as 14% for the day.
Market Reaction
On Wednesday, NSRPF stock moved up 14.37% to $0.2170 with 294.95K shares, compared to volume of 118.23K shares. The stock moved within a range of $0.1826 – 0.2215 after opening trade at $0.1826.
Novo Resources Shareholder Address
The company started the letter off by noting that 2022 had proven to be a challenging year. The continued impact of the COVID-19 pandemic, a rapidly growing Australian mining sector and the supply chain issues had all gone towards escalating the costs of doing business for Nuvo.
On the other hand, it was pointed out that the rising interest rates and the inflationary pressures had caused volatility for almost all industries across the world. That may have resulted in investors hedging their bets with investments in gold and that may have been a positive for Nuvo.
However, that did not happen in 2022. The company added that the precious metals sector in which it is involved had proven to be a difficult one to navigate. The dearth of investor interest and diminishing trading volumes had both contributed to the state of affairs.
Technical Data
NSRPF stock is trading below the 20-Day and 50-Day Moving averages of $0.25 and $0.30 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.49. The company has a total market capitalization of $54 million.
