The Australian: Criterion, page-3

Nice pickup.

Might be behind a paywall for some, so here's the part relevant to HAV for those unable to access the site.

"Havilah chief Chris Giles notes the $40m market worth of the country’s next producing goldminer equates with the gross cashflow the company expects to earn in 2016 alone. Giles is referring to the Portia open-pit mine in outback South Australia, a 67,000 ounce resource that is well into overburden removal stage.

The output is shared with Broken Hill-based contractor Steve Radford — a hitherto unconventional profit-splitting arrangement that has become more popular with the sector’s otherwise idle handmaidens.

Portia is merely a stepping stone to potential greater riches at North Portia (a copper-gold sulphide resource) and the even bigger Kalkaroo (copper-gold).

To avoid land issues, Havilah acquitted the Kalkaroo sheep station on which the site is based, although Giles quips it’s now populated by 10,000 roos rather than woolly beasts. Havilah is also eyeing copper gold at a side project called Mutooroo.

Giles has especially kind words about cobalt, a key ingredient of lithium-ion batteries along with lithium and graphite. Cobalt is mainly derived as a byproduct of copper smelting, lithium and graphite are as common as air.

“As a geologist I can tell you that both of those commodities are not rare,’’ he says. “Anyone who tells you lithium is in short supply is pulling your leg.’’

To satisfy the terms of a $6m debt funding deal with Investec, Havilah in October hedged 10,000 ounces of gold — 40 per cent of Havilah’s share of Portia output — at $1618 an ounce. The spot price is at $1540 an ounce.

Given Havilah is sitting either on a goldmine or the country’s biggest source of pet food, we maintain a spec buy call."