Executive Summary / Key Takeaways

• Strategic De-Risking Through Defense Funding: Nova Minerals' wholly-owned U.S. subsidiary secured $43.4 million in Defense Production Act Title III funding in October 2025, representing non-dilutive capital that validates the antimony project's strategic importance while eliminating near-term funding risk for this critical mineral development.

• Extreme Valuation Disconnect: The company trades at approximately $40 per resource ounce of gold, a staggering 85% discount to the North American peer average of $278/oz, implying the market assigns virtually zero value to its 4.41 million attributable gold ounces and its unique U.S. antimony optionality.

• Imminent Production Timeline: With procurement underway for mining equipment and a land use permit secured for an antimony refinery, Nova targets first military-grade antimony trisulfide production in 2026/27 and first gold pour in 2027, placing it 12-24 months from generating inaugural revenue after nearly four decades as an exploration company.

• Balance Sheet Transformation: Following a July 2025 $12.1 million equity raise and the conversion of $5.42 million in convertible debt, Nova is debt-free with sufficient cash to fund operations for over 12 months, fundamentally altering its historical pattern of dilutive financing.

• Execution Risk Remains the Critical Variable: While funding and permits have de-risked the path to production, the company has yet to complete a feasibility study, faces Alaska's challenging operating environment, and remains exposed to volatile commodity prices—making execution on its ambitious timeline the ultimate arbiter of value realization.

Setting the Scene: A 38-Year Journey to Strategic Relevance

Nova Minerals Limited, incorporated in Australia in January 1987 and operating for 38 years as an exploration-stage company, has finally arrived at an inflection point where its geopolitical positioning may matter more than its geological assets. The company spent decades as Quantum Resources Limited before rebranding in December 2017, the same year it entered the Alaskan market through a joint venture that secured 85% of the Estelle Gold Project. This timing proved prescient—Estelle now sits at the nexus of two converging macro trends: record central bank gold demand and America's urgent need for domestic critical mineral supply chains.

The Estelle Project spans 803 Alaska State mining claims across 127,102 acres (514 km²) within the Tintina Gold Belt , a region with documented gold endowment exceeding 220 million ounces. What distinguishes Nova from the hundreds of junior explorers that populate North America is the coincident discovery of high-grade antimony across six prospects within the same property. This dual-commodity footprint transforms Nova from a pure-play gold developer into a strategic asset for U.S. national security—a positioning that unlocked $43.4 million in Defense Production Act funding and fundamentally alters its investment proposition.

Strategic Differentiation: The Antimony Advantage

Why Antimony Changes Everything

Antimony is not merely a by-product credit; it represents a standalone strategic value proposition. The United States currently maintains zero domestic primary production of antimony, a critical mineral essential for military applications, flame retardants, and advanced batteries. China controls approximately 54% of global supply and recently imposed a complete export ban to the U.S., while global strategic stockpiles rapidly deplete. This supply crisis has driven antimony prices up over 250% in the past 12 months, creating an unprecedented economic incentive for domestic production.

Nova's Stibium prospect delivers grades that would be exceptional in any jurisdiction: 12 rock samples grading greater than 30% antimony, with a high of 60.5%, coincident with seven gold samples exceeding 20 g/t. Independent expert RFC Ambrian identified Estelle as one of only nine projects globally—and one of only two in the U.S.—with potential for near-term antimony production. This scarcity premium explains why the Department of Defense awarded $43.4 million specifically for antimony trisulfide production, effectively making Nova a quasi-strategic national asset.

What This Implies for Margins and Funding

The antimony angle creates a dual-pathway to cash flow that pure gold developers lack. While gold production requires extensive feasibility studies, permitting, and capital-intensive processing facilities, antimony's strategic status unlocks non-dilutive government funding and potentially expedited permitting. The $43.4 million grant covers a significant portion of initial capital requirements without equity dilution, preserving shareholder value while de-risking the project timeline. Moreover, antimony co-product credits could substantially lower the effective all-in sustaining cost per gold ounce, improving project economics by an estimated 15-20% compared to a gold-only operation—a margin advantage that pure-play peers like Dakota Gold or New Found Gold cannot replicate.

Technology and Infrastructure: More Than Just Rocks

Ore Sorting and Metallurgical Advantages

Nova has invested in advanced ore sorting technology using Dual Energy X-Ray Transmission (DEXRT) , achieving a 2.3x upgrade factor at the Styx Antimony Prospect—concentrating 60.3% antimony from 26.1% of mass. This reduction in processing volumes, lower capital intensity, and accelerated payback periods are significant. Preliminary metallurgy shows gold recoveries averaging 88.3% using conventional technology, with optimization potential remaining. These technical de-risking milestones transform Estelle from a speculative resource into a potentially financeable project.

Infrastructure and Location: The Alaska Challenge and Opportunity

Operating in Alaska presents undeniable logistical challenges that increase operating costs by an estimated 20-30% compared to contiguous U.S. projects. However, Nova has methodically mitigated this disadvantage through strategic infrastructure investments: a fully winterized 80-person camp, on-site sample processing facility, 4,000-foot airstrip, and established year-round operations. The proposed West Susitna Access Road, for which Alaska's governor has requested priority status under Executive Order 14241, would further reduce transport costs and improve project economics.

The location's remoteness is simultaneously its strategic moat. While competitors in South Dakota or Newfoundland face crowded jurisdictions and community opposition, Alaska actively welcomes resource development to diversify its economy. The state government and federal agencies have demonstrated support through expedited permitting for critical minerals, creating a regulatory advantage that more accessible jurisdictions cannot match.

Financial Performance: From Perpetual Dilution to Strategic Funding

The Capital Raising Evolution

Nova's financial history reflects the typical junior explorer narrative—persistent losses and reliance on equity dilution. The company reported a net loss of A$11.1 million for fiscal 2025, a 32% improvement from the prior year, but still burned A$7.64 million in operating cash flow. However, the funding strategy has evolved dramatically. After raising $3.3 million in its July 2024 Nasdaq IPO, Nova completed a $12.1 million underwritten offering in July 2025, then secured $43.4 million in non-dilutive DoD funding—effectively replacing expensive equity capital with strategic government investment.

Balance Sheet Transformation

The January 2025 conversion of Nebari's $5.42 million convertible loan into 35.01 million ordinary shares eliminated all debt, leaving Nova with $9.37 million in cash at June 30, 2025, and working capital of $6.69 million.

Post-period events—including the $12.1 million July raise and $43.4 million grant—have created a pro forma cash position of approximately $65 million, sufficient to fund operations for over 12 months while advancing both antimony and gold development. This breaks the historical pattern of continuous dilutive financings that plague junior explorers, giving management runway to deliver on milestones before returning to capital markets.

What the Numbers Imply for Future Funding Needs

While the balance sheet is stronger than at any point in the company's 38-year history, the $100.14 million in capitalized exploration costs demonstrates the substantial investment required to advance Estelle. Management's guidance suggests first revenue in 2026/27, meaning Nova must carefully manage its $65 million war chest to cover two years of exploration, permitting, and initial development.

The burn rate of approximately $5-7 million annually appears manageable, but any delays in production timeline or cost overruns could force dilutive equity raises at inopportune times—precisely when the valuation discount suggests management should be buying assets, not selling shares.

Outlook and Execution: The Race to Production

The 2025 Drill Program and Resource Growth

Nova commenced a 15,000-meter drill program in June 2025, allocating 10,000 meters to RPM for resource expansion, 3,000 meters to Stibium for maiden antimony-gold resource estimation, and 2,000 meters to Korbel for higher-grade starter pit evaluation. This addresses the key valuation gap: converting inferred resources to measured and indicated categories while establishing antimony resources that could support early cash flow. The program targets the 7,400 meters of drilling from 2023-2024 not yet included in resource estimates, offering potential resource upside without additional discovery risk.

Timeline Credibility and Risk Factors

Management targets first antimony production in 2026/27 and first gold pour in 2027—an aggressive timeline for a project still awaiting a formal feasibility study expected in 2026. The lack of proven and probable reserves means these timelines carry execution risk typical of pre-feasibility projects. However, the antimony pathway may prove more flexible, as Defense Production Act funding could accelerate development independent of traditional mining finance requirements. The critical variable is whether Nova can complete the Stibium maiden resource estimate by year-end 2025 and advance permitting fast enough to meet the 2026/27 production target.

Management's Strategic Signaling

CEO comments emphasize "transformative progress" and "national significance," positioning Nova as a strategic supplier rather than a commodity producer. This messaging aligns with the DoD funding and suggests management is cultivating relationships that could yield additional government contracts or offtake agreements. The decision to secure a 42.81-acre refinery site at Port MacKenzie before establishing reserves signals confidence in the antimony resource and a commitment to vertical integration that could capture full value chain margins.

Risks: What Could Break the Thesis

Execution Risk in a Capital-Intensive Sector

The most material risk is Nova's ability to deliver on production timelines in Alaska's challenging environment. The company has never operated a mine, and the jump from exploration to production represents a quantum leap in technical complexity and capital requirements. If the 2026/27 antimony target slips, the company would face another 12-18 months of cash burn without revenue, potentially requiring dilutive financing at a time when the valuation discount suggests equity should be preserved.

Commodity Price Volatility and Margin Compression

While antimony prices have surged 250%, they remain historically volatile. A price correction to historical levels of $8,000-10,000/tonne (vs. current ~$20,000/tonne) could render the Stibium prospect marginal despite high grades. Similarly, gold price declines below $1,800/oz would stress the economics of the RPM starter mine. The company's profitability and cash flows are highly susceptible to these fluctuations, with no hedging strategy disclosed to date.

Regulatory and Environmental Hurdles

Alaska's support for mining does not eliminate regulatory risk. The West Susitna Access Road remains in permitting, and any delays would increase operating costs by 15-20% through reliance on air transport. Environmental opposition to mining in salmon-bearing watersheds could emerge, particularly for the antimony refinery at Port MacKenzie. While the DoD funding suggests federal support, state-level permitting for the refinery and mine infrastructure remains a critical path item with uncertain timeline.

Single-Project Concentration

With 100% of capitalized exploration value tied to Estelle, any geological disappointment or permitting failure would represent a catastrophic loss of shareholder value. Unlike peers with multiple projects across jurisdictions, Nova's fortunes rest entirely on one Alaskan land package—a risk amplified by the remote location and limited operational diversification.

Valuation Context: The $40/Oz Question

Trading at $8.14 per share, Nova carries a market capitalization of $278.67 million and an enterprise value of approximately $213.67 million after accounting for its pro forma cash position. The most telling metric is the EV per resource ounce: at approximately $40/oz based on 4.41 million attributable gold ounces, Nova trades at an 85% discount to the North American developer peer average of $278/oz. This valuation anomaly exists despite Nova's gold resources being open-pittable, near-surface, and amenable to bulk mining with low strip ratios—characteristics that typically command premium valuations.

What This Implies for Risk/Reward

The extreme discount suggests the market assigns zero value to the antimony project and treats Nova's gold resources as low-probability development candidates. If Nova executes on its 2027 gold production target, re-rating to even half the peer average would imply 250-300% upside from current levels. The antimony optionality—backed by $43.4 million in DoD funding and representing one of only two U.S. near-term production sources—presents additional asymmetric upside that pure gold peers cannot offer.

Peer Comparison and Relative Value

Comparing Nova to direct peers reveals the valuation gap's significance:

• Contango Ore (CTGO): Producing gold in Alaska with $107M cash, trades at positive operating margins but lacks critical mineral diversification and trades at higher EV/oz multiples.
• Dakota Gold (DC): Pre-revenue explorer in South Dakota with $652M market cap, trading at higher multiples despite no strategic mineral angle or government backing.
• New Found Gold (NFGC): Newfoundland explorer with $973M market cap, trading at 13x book value vs. Nova's 58x, but lacking the U.S. strategic positioning and grant funding.

Nova's balance sheet strength (3.49 current ratio, zero debt) matches or exceeds most peers, while its burn rate of ~$5-7 million annually appears manageable with $65+ million in pro forma cash. The key differentiator remains the DoD funding, which effectively provides a $43.4 million non-dilutive equity injection that peers must raise through dilutive equity markets.

Conclusion: The Asymmetric Bet on U.S. Strategic Minerals

Nova Minerals has evolved from a 38-year-old perpetual explorer into a strategically positioned critical minerals developer at the precise moment when U.S. supply chain security has become paramount. The $43.4 million Defense Production Act funding serves as both validation and capital, de-risking the antimony pathway while preserving equity value. Trading at $40 per resource ounce—an 85% discount to peers—the market has effectively priced Nova as a high-risk exploration play while ignoring its transformation into a near-term producer with government backing.

The investment thesis hinges on execution within a 12-24 month window. If Nova delivers maiden antimony resources by year-end 2025, advances the feasibility study in 2026, and achieves first production in 2026/27, the valuation re-rating could be substantial. The antimony optionality provides upside asymmetry: success in establishing a U.S. domestic supply chain could attract additional government contracts, strategic partnerships, or premium offtake pricing.

Conversely, failure to meet production timelines, commodity price collapse, or permitting delays would likely result in further dilutive financing at depressed valuations, given the single-project concentration. The remote Alaskan location, while strategically advantageous for permitting, remains a persistent cost and logistical challenge that could compress margins.

For investors, the critical variables to monitor are the Stibium maiden resource estimate release, the formal feasibility study completion date, and any updates on the West Susitna Access Road permitting. These milestones will determine whether Nova's valuation anomaly represents a generational buying opportunity or a value trap disguised by strategic rhetoric. The company has never been better capitalized or more strategically relevant, but it has also never faced greater pressure to deliver on promises after 38 years of exploration.