11-Oct-2020:  I recently sold out of HAV.  They have disappointed their long-suffering shareholders for years.  Their latest angle is promoting their REE assets - Rare Earth Elements.  See here:  https://www.havilah-resources-projects.com/rareearthelements

They have REE, copper, gold, cobalt, iron ore and other assets, all in S.A. - and so far none of these assets have been brought into production.  They are still burning through cash with no revenues.

An email I received from Dr Chris Giles, their Technical Director this morning said the following:

HAVILAH'S CRITICAL MINERALS 

In an unprecedented move, President Trump recently issued an Executive Order on Addressing the Threat to the Domestic Supply Chain from Reliance on Critical Minerals from Foreign Adversaries aimed at building the United States' domestic supply chain for 35 critical minerals.

The Executive Order sets out a compelling case for Western nations to develop self-sufficiency in critical minerals. This has positive implications for mining investment in Australia.

Havilah is well positioned to benefit from the growing global demand for responsibly sourced critical minerals, with several cobalt, rare earth element (REE), tin, tungsten and uranium projects in the Curnamona Craton region of northeastern South Australia.

Click Here to watch Havilah's REE Project Overview Video

Click Here to View President Trump's Executive Order

Click Here to View Havilah's Critical Minerals Presentation

[HAV are still on one of my watchlists, but I do not currently hold HAV shares.]

29-7-2020:  Kalkaroo Project Planning Update

HIGHLIGHTS

• Havilah plans to focus on the feasibility of developing the gold-only start up open pit at West Kalkaroo, that will initially target shallower oxidised gold resources.
• Infill drilling at 25 metre x 25 metre spacing over the last 4 months within the planned open pit shell has delivered a high degree of confidence in the gold resource.
• Directors consider this gold-only strategy is more likely to attract financing for West Kalkaroo and will in turn enhance the future development prospects of the much larger Kalkaroo copper-gold sulphide mining project.
• Havilah technical personnel are currently focused on advancing the final Kalkaroo environmental approvals along with obtaining capex and opex estimates for the gold-only start up open pit.
• The value of Kalkaroo on a NPV7.5% basis has risen considerably in AUD terms over the last 12 months, largely due to the increased long-term forecast USD gold price.
• Kalkaroo is considered to be at the lower risk end from a COVID-19 pandemic and sovereign risk perspective, which should assist its future development prospects.

--- click on link above for the full announcement ---

[I hold HAV shares]

28-7-2020:  Havilah's Critical Minerals Presentation

6th July 2020:  Matt Bohlsen of Seeking Alpha Trend Investing poses a series of questions to Dr Chris Giles, Havilah's Technical Director, whose frank answers will be of interest to shareholders and potential investors

For recent ASX announcements by Havilah (HAV), see here.

[I have a small HAV position, which I'm underwater on currently.  Will not be tipping any fresh money into this one until they start making some proper positive progress - rather than just positive spin.  I note that HAV have recovered to the 12-month high (~14 cps) that they were at almost one year ago, but they're WELL below the 70 cps to 80 cps levels they reached back in August and September 2016.  It would be nice if the SP recovery seen over the past month continues.  My average price paid for my small HAV shareholding is 20 cps.]

Further Reading:  https://www.proactiveinvestors.com.au/companies/news/923433/havilah-resources-achieves-west-kalkaroo-open-pit-objectives-and-looks-for-more-gold-923433.html

27-May-2020:  Quarterly Activities Report

I've got a small position in Havilah Resources (HAV), and they've performed dismally so far.  They have a number of "prospective" projects, mostly in the north-east of South Australia, and those encompass Copper, Gold, Cobalt, Rare Earths and Iron Ore.  They had a deal lined up last year that would have been a game changer for them (in a positive way) in that a MUCH larger company - Sanjeev Gupta's SIMEC Group, part of the Indian-based GFG Alliance - was taking a large stake in them and providing around $100m in financing plus experience and expertise to hopefully take them through to production with some of these projects, however the largest shareholder in the company, Dr Chris Giles, their current Technical Director and a co-founder of the company, having supported the transaction up until the day of the General Meeting, changed his mind on the day and voted against the proposal.  GFG/SIMEC understandably walked away - a little upset.  So did HAV's CEO and the entire board, except for Dr Giles.  It's been all downhill since then unfortunately.

They are not burning much cash, so they can wait this situation out, and they may come good again one day.  I could NOT recommend them though.  Usually I would have cut my losses immediately because of what Dr. Giles did, but I'm not sure I fully understood why he did it at the time, and my position was very small (comensurate with the high risk of holding an explorer and wanna-be-developer with no revenue), so I ended up just letting it ride.  I haven't topped up however.  If they ever have a decent bounce, I'll probably sell into whatever strength there is at that time.  They certainly have a lot of projects.  I just don't know which ones, if any, they are going to be able to convert into some revenue, and how long that process might take.

18 June 2019:  HAV: Copper to the World 2019 Conference Information Pack Presentation

21 June 2019:  http://www.stateone.com.au/Download/Download?file=HAV_20180621.pdf&downloadType=PUBLICATIONS

That's the latest update to clients from State One Stockbroking on Havilah Resources (ASX:HAV) regarding their Kalkaroo Project PFS (pre-feasibility study).  

HAV is certainly a high risk speculative "investment" (read: gamble).  State One have a 21 cent price target for them and a "Speculative Buy" call.  HAV closed at 13.5c yesterday, so the upside implied in State One's PT for HAV is 55%, but you need that sort of upside potential from a company that could easily go to $0.

Disclosure:  I have a small HAV holding.

01-May-19:  The latest addition to my Strawman.Com Scorecard, HAV, rose 45% today (from their 15c close yesterday, to close at 22.5c today) on this announcement.  SIMEC have agreed to invest up to $100 million in HAV, but the downside is that they are buying shares with that money and could end up with 51% of HAV, so SIMEC could effectively control Havilah in three years time.  HAV have also announced that a discounted pro-rata rights issue will be offered to existing shareholders, after shareholder approval, but prior to any placement to GFG (SIMEC).    

The big news however is that OneSteel Manufacturing Pty Ltd (trading as “SIMEC Mining”) (SIMEC), a member of the GFG Alliance (GFG), will fully fund Havilah’s work programs for its iron ore assets and its copper prospects in the Mutooroo Copper-Cobalt District, including the Mutooroo deposit, and provide a clear pathway to potential commercialisation.   GFG is a successful international group which owns the Whyalla Steelworks and iron ore export facilities, and which can provide access to global capital markets and extensive technical and commercial support

Disclosure:  I hold HAV shares, and today's 45% rise takes them back up to the price I paid for them back on July 31st 2018, so I'm back to breakeven on HAV now.  On my Strawman.Com scorecard however, my HAV is up 50%!  Now, if only CLQ could have a positive move like that, I might get my scorecard back into positive territory...

Update - 30-Oct-2019:  Like a lead balloon, they came back down - closed at 10c today, and they're raising money again, after the resignation of Mark Stewart and Martin Janes as independent non-executive directors earlier this month following the resolution for the approval of the proposed investment in Havilah of up to $100 million by OneSteel Manufacturing Pty Ltd (SIMEC) not being passed by shareholders at the EGM held on 12 September 2019.

It's all a bit of a mess.  I'm still holding.  Don't know why sometimes.  They might come good - eventually...  hopefully...  it's a very small "investment" and I don't spend much time worrying about it...   Which is probably for the best.  

27-Apr-2019:  State One Stockbroking released this report on April 17th (this month) which is titled, Havilah Resources (ASX:HAV), Iron ore could be the new "gold".

They have a "Speculative Buy" call on HAV and a target price (TP) of 30c.  HAV closed at 15c yesterday, so State One think HAV can double from here.

Here's a couple of interesting excerpts from their report (which was distributed yesterday via the ASX's free broker report service that I have discussed in other straws previously):

State One comment: end-April could see a deal with SIMEC

In May 2018, SIMEC Mining (part of the Gupta Family Group (GFG)) commenced due diligence - including metallurgical testing and RC drilling - on HAV’s iron ore projects. Note: the Maldorky and Grants/GIOB Projects are favourably located in relation to GFG’s existing steelmaking and iron ore export operations at Whyalla. In December 2018, the exclusivity period to complete the due diligence was extended from the end of 2018 to the end of January 2019, and then on payment of A$1m was extended further to 31 March 2019. Subsequently, a 30-day extension was granted (to the end of April 2019). Importantly, HAV stated that the extension was to allow for both parties to “continue negotiations on the terms of a deal structure and commercial arrangement”. While there is no certainty that a deal will be announced by the end of April, or indeed at all, we suggest that the payment of A$1m by SIMEC to allow due diligence extensions was a positive sign. 

SOTP Valuation: 30cps  

HAV’s current combined iron ore Resource is estimated at 451Mt @ 26% Fe for 117Mt of contained Fe. At an assumed Resource value of US$0.15 per t of contained metal (based on peer average Resource valuations), we calculate HAV’s iron ore Resource could be worth ~A$24m (equivalent to A$0.10 per diluted share). Importantly, HAV disclosed on 3 April 2019 an exploration target for the GIOB of at least 3.5Bt @ 24% for 840Mt of contained Fe. Converting this to a Resource, could increase the iron ore valuation by multiples. Allied to our (risk-adjusted) valuation of A$38m for Kalkaroo, we calculate HAV’s SOTP valuation at A$71m (A$0.30ps). Recommendation: Speculative Buy (Higher Risk).  Risks to our target price and forecast earnings profile include but are not limited to: commodity price (Cu, Au, Co, Fe) and exchange rate volatility, near-term cash flow, development outcomes at the Mutooroo and Kalkaroo Projects, and a successful outcome with SIMEC re HAV’s iron ore assets. 

Disclosure:  I hold some HAV shares.  Highly speculative.  Such companies should only ever form a small part of a diversified portfolio.  Only "invest" in such companies what you can comfortably afford to lose 100% of, would be my advice here.