good results on all fronts

It is so nice to have great management with a great suite of assets.

Fundamentals are still good with HAV.

However, in the short term there is a disconnect between the HAV share price and its underlying fundamental value.

IMHO, as far as the HAV July 2007 ASX Quarterly report was concerned what the market missed or ignored (because it is longer term) were the following points noted in the report:

Portia Gold Project
“PTDD207 drilled on the same easting and approximately 30 metres north of PTDD206 also returned a wide total interval of 35 metres of 4.7 g/t Au, mostly in bedrock. This drillhole returned a spectacular 2100 g /t Au (or 70 oz / tonne) over 0.7 metres in the base of Tertiary layer, but was cut to 100 g/t for the purpose of the average quoted above.”

Did people miss the “spectacular 2100 g /t Au (or 70 oz / tonne) over 0.7 metres”? Gold mining does not get much better than that!

On top of that, the spot and forward gold price is currently above US$700. Longer term, it is likely Portia production will be produced and sold in a much higher gold price environment.

Mutoroo Cooper-Cobalt Project
“Preliminary tests on RC chip samples have shown that the silicate gangue material can be separated comparatively readily by gravity means, resulting in an estimated 30% upgrade of the sulphide ore head grade.”

A 30% upgrade of the sulphide ore head grade!!

“A primary objective of the feasibility study drilling is to prove up sufficient ore to JORC measured resource status to support an annual production schedule of around 20,000 tonnes of copper and 2,000 tonnes of cobalt. It is expected that with the current round of closely spaced RC drilling and metallurgical test work underway, this goal will be achieved before the end of the year.”

It is expected that this goal (20,000 t of CU and 2,000 t of CO) will be achieved by 31 December 2007!!

Once achieved, this should more than double the (previously reported) NPV of the project.

Kalkaroo Cooper-Gold-Molybdenum Project
“The resource extension drilling will aim to test the depth extensions of the Kalkaroo mineralisation beyond the 150 – 180 metre depth previously drilled by Havilah.”

If deeper depth is oxidised ore, the Kalkaroo project would therefore be expected to have more favourable mining economics.

On top of that, the spot and forward gold price is currently above US$700. Longer term, it is likely Kalkaroo production will be produced and sold in a much higher gold price environment.


Like anything else, the current HAV share price is a function of supply and demand. Too much supply and no real demand for the shares (daily volumes have been sub-50,000 on average over the last week; less than 5,000 shares on average per trade).

In the short term, the only current catalysts for the share price appear to be higher gold prices, drill bit success at the Kalkaroo (feasibility study to take now about 16 months) and Mutoroo projects, and the decision to proceed with a trial open pit at Portia (production possibly by 31 March 2008).

Uncle Bob has certainly looked after my investment in HAV and I expect him to continue to do so into the future.

In due course, I would appreciate a contrarian view(s) on the above.

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.