HAV, HAVILAH RESOURCES NL

[clark888]

HAVILAH RESOURCES NL

SWOT ANALYSIS (updated from my previous version of June 2012)

Havilah has three business segments:

• Ironore development;

• Copper-gold development; and

• Exploration(100% owned tenements, numerous targets, MMG JV).

Havilah is a work in progress, so shareholders need patience.

STRENGTHS

LARGE TENEMENT POSITION: Havilah has a strong tenement position, covering a large part (~8,000square kilometres) of the Curnamona Craton, with significant strategic and prospective value.

MULTIPLE MINERALS: On Havilah's tenements have been found copper, gold, cobalt, moly,zinc, lead, tin, magnetite (Fe), uranium (sands and hard rock) and sulphur (couldbe used for production of sulphuric acid).

STRONG DEVELOPMENT PORTFOLIO: Kalkaroo (Cu, Au, Mo, Co), Portia (Au), North Portia (Cu, Au, Mo), Mutooroo (Cu, Co, S, Fe), Maldorky (Fe) and Lilydale (Fe).

SIGNIFICANT RESOURCE BASE: JORC resource estimates include 915,500 tonnes of Cu, 2.4 million oz of Au, 17.5 kg of Co and 8.45 kg of Mo. Mostly amenable to open pit mining and conventional processing. A magnetite resource has been calculated for Maldorky and Lilydale of 159,000,000 tonnes of premium grade iron ore product.

PROMISING EXPLORATION RESULTS: Significant results have been received from the EurinillaDome where a broad Cu and Au anomaly is apparent over several square kilometres in fresh to weakly weathered basement rocks, the significance of which is still under investigation. (Source: MMG ASX quarterly report, 31 January 2013). Theregional extent of mineralisation does hold promise for a large copper/ gold discovery.

MANAGEMENT:The Adelaide based Management team is well regarded for its exploration skills,a strong record of exploration success and is considered to be of high integrity. (Source: CanaccordBGF) They are skilled explorers who keep on finding new and exciting prospects to drill. (Source: Peter Strachan, June 2012Resource Stocks article).



The management team is looking to increase its skills base as it gears up for several developments in the next few years. The recent appointment of Peter Reeve as an Executive Director, who was previously CEO at Ivanhoe Australia, was well received by the market. Peter will focus on corporate and strategic development.



EXCELLENT TECHNICAL PARTNER: The current relationship with MMG provides funding (up to $12million for exploration, over 5 years starting from September 2011. MMG is required to spend a minimum of $3 million on exploration prior to withdrawal), provides access to innovative and new technologies, and helps reduce exploration risk north of the Barrier Highway (excluding Kalkaroo EL, Portia and North Portia). MMG has one of the largest geoscience exploration teams in Australia, with expertise in iron oxide copper gold (IOCG of Olympic Dam/Prominent Hill style) and sediment hosted lead zinc (Century/ Dugald Riverstyle).



ACCESS TO INFRASTRUCTURE: The region is well serviced by road and rail, with access to power. Broken Hill is in close proximity (potential workforce).

STRONG EXPLORATION POTENTIAL: Havilah's discovery culture has yielded 8 discoveries in 8 years, with only a small portion of its tenements and data utilised. (Source:slide 3 of HAV Investor Presentation dated 31 January 2013)

Havilah still has plenty of exploration potential both around known deposits and elsewhere on its tenements. Major new mineral deposits on Havilah's ground are highly probable.

There is also longer term upside for Havilah in applying the knowledge gained by mining at Portia in the search for additional bedrock gold mineralisation in similar geological settings elsewhere on the Benagerie Dome where there is known high grade bedrock gold mineralisation from earlier drilling

For example, at Shylock[Pasminco-Werrie Gold Joint Venture: drilling at the Shylock prospect outlineda gold mineralised zone over a 2,500 m strike length. Significant gold and copper mineralisation in 36 of the 125 holes, including the spectacular gold intersection reported in drill hole BEN 677 of 23 m at 79.25 g/t Au from 90-113m (MESA Journal 11, October 1998 p.14)].

For example at Lorenzo [Pasminco-Werrie Gold Joint Venture: at the Lorenzo prospect,follow-up drilling identified further high-grade copper and gold intersections; the best included drill holes BEN 1322 with 12 mat 2.6% Cu from 98 m and BEN 1543 with 3 m at 9.05 g/t Au from 116 m (MESA Journal 14, July 1999 p.16)].

The MMG exploration agreement also has the potential to discover a major orebody over the next 3-4 years.

Finally, it is important to remember that within HAV's continuous blocks in the Curnamona Craton there are 7 domes: Kalkaroo Dome, Benagerie Dome, Eurinilla Dome, Lake Charles Dome, Mulyungaire Dome, Birthday Dome and St John Dome.

PROMOTION: Havilah Directors have undertaken several promotional activities during the half year, including presentations to a number of institutional investors in Sydney and Melbourne.

Havilah also participated in an ASX sponsored "ASX Small to Mid Caps Investor Conference" held in Singapore and Hong Kong. This conference provided an opportunity for one-on-onemeetings with representatives of Asian based institutions, corporations and private investors and apparently identified many opportunities for Havilah to follow up. (Source: HAV ASX quarterly report 30 November 2012)

WEAKNESSES

LOW GRADE DEPOSITS: While Havilah's deposits are large, they are relatively low grade.

NO MINES IN PRODUCTION: While Havilah has a history of being a consummate explorer over its10 year history on ASX, it is always just off the pace when it comes to developing a mine. (Source: Peter Strachan, June 2012 Resource Stocks article)

DEPENDENCE ON KEY EMPLOYEES: If either Bob and/or Chris leave the Company, Havilah loses vital knowledge and relationship contacts. In addition, Bob will be 66 years of age this year. While no succession plan has been communicated to shareholders, the recent appointment of Peter Reeve as an Executive Director means it is likely he will be appointed CEO if and when Bob retires.

BOARD: Small number of Directors (1 independent and 3 executive directors). Havilah does nothave a majority of independent Directors re corporate governance (it would need to add 3 further independent Directors to achieve this). No succession plan has been communicated to shareholders.

ATTENTION TO DETAIL: Dotting the i's and crossing the t's is sometimes lacking.

GOVERNMENT RELATIONS: The Company appears to have a love-hate relationship with DMITRE, particularly when it comes to getting Program for Environment Protection and Rehabilitation ('PEPR') approval. The provision for a PEPR replaced the regulation under theMining Act relating to the requirement for a Mining and Rehabilitation Program ('MARP').

GEOGRAPHIC CONCENTRATION: Apart from a small investment in Monax Mining Limited, the Pernatty joint venture with Red Metals Limited in the Gawler Craton and a Cooper Pedy tenement (EL 4416), all Havilah's other tenements are currently concentrated in theCurnamona Craton.



OPPORTUNITIES

FUNDING: The Company is in a position to fund project development and exploration by joint venturing or sale of 100% held projects: Kalkaroo, Mutooroo, Portia, NorthPortia, Maldorky, Lilydale. In addition, Management/ Board have the ability to issue up to 20 million ordinary shares (for which they already have shareholder approval); and/or encourage shareholders/ employees to exercise their listed and unlisted options.

STRATEGIC ALLIANCES: It is possible that HAV will do another deal with MMG on exploration over the Curnamona Energy tenements that are now in the Havilah fold.

Havilah may form a strategic alliance with Exco Resources Limited and/or Polymetals MiningLimited (who previously mined the White Dam gold mine in the Curnamona Craton) to help it develop and mine at Portia.

BROKER COVERAGE (AND RESEARCH REPORTS) AND RESOURCE INDEX: Currently, Havilah is not in an ASX Resources Index, so it does not attract a institutional index buying/re-weighting. In addition, only Canaccord Genuity and Peter Strachan cover Havilah and issue research reports. Canaccord Genuity, in its 6 August 2012 research report, has a preferred company valuation of $344 million or $2.88 per share (with a price target of $2.30).

It should benoted that no value for exploration upside was included in the above valuation.Canaccord Genuity considered this a conservative treatment because the intention of MMG to spend $12 million on exploration over 5 years on the search of large mineral deposits clearly demonstrates the exploration potential. In addition, no value was assigned to the uranium and/or geothermal assets.

MARKETING: Once Havilah starts to develop a mine, it could market the minerals in-house rather than put in place a metals off-take agreement. This would save it between 1-4% commission/ marketing fee on each sale.

LONDON METAL EXCHANGE: The LME launched the world's first cobalt and moly futures contracts,to be traded on an exchange, during February 2010. This regulates exchange pricing, transparency, risk management and clearing to these two metals. Historically cobalt and moly have traded without the benefit of regulated exchange security and transparency.



THREATS

COMMODITY EXPOSURE: A significant fall in copper and/or gold prices reduces Havilah's appeal.

TAKEOVER TARGET:Havilah is still vulnerable, particularly given it did not accept a bid for theKalkaroo Project. My biggest fear is still a takeover (hostile or friendly) at less than $6 per HAV share (on a fully diluted basis).

NATIVE TITLE: Is a source of continuing frustration for Management because of ambiguous legislation, legal challenges and lack of government support. For Kalkaroo and other projects, native title remains unresolved.

Cheers

These are only my random 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 parties

[macduffy]

In Reply To: macduffy's post @ Dec 5 2012, 06:07 AM

Confirmation of Grants as major iron ore discovery.

http://www.asx.com.au/asxpdf/20121205/pdf/42bqznjy47lpjp.pdf


Yesterday's 17% SP rise just a lucky coincidence!

[macduffy]

So what's going on?

SP up 17% yesterday on lowish turnover. No announcement from the company but surely a "please explain" from the ASX today?

[macduffy]

In Reply To: clark888's post @ Nov 19 2012, 09:34 AM

Yes, I saw that earlier today. Given that Cannacord have been involved in a previous HAV capital raising - perhaps still have an underwriting shortfall on their books? - I'd be inclined not to put too much weight on their recommendation. Although perhaps a bit surprising that it wasn't a Buy rather than a Hold?

[clark888]

A LITTLE MORE PATIENCE?

http://www.thebull.com.au/premium/a/33181-...ember-2012.html

Warwick Grigor, Canaccord BGF (have a hold on HAV according to the above article):

"In my view, Havilah continues to be undervalued amid a rich block of ground in South Australia, covering copper, gold and iron ore. The management team is looking to increase its skills base as it gears up for several developments in the next few years that may make it a very profitable producer. Havilah is a work in progress, so shareholders need a little more patience."

Cheers
These are only my random 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 parties.

[clark888]

In Reply To: macduffy's post @ Oct 22 2012, 10:22 AM

MacDuffy, Nifty, Ferdie,

Did anyone else watch all 33 minutes of the BRR video below?

The most interesting part for me had to be the last 5 minutes, where Chris was quite candid with the questions from the floor, particularly on the potential funding for Portia!!

Having said that, someone needs to "tell" Chris never, never, never touch your face when presenting!!!!

Cheers
These are only my random 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 parties.

[clark888]

For those that are interested, a new "sample" from Peter Strachan.

While it is old news, it would seem he was also "gutted" on the lack of sale progress at Kalkaroo.

http://www.pex.com.au/samples/sa_sample1.pdf

Cheers
These are only my random 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 parties.

[macduffy]

Company announcement re media article.

http://asx.com.au/asxpdf/20121022/pdf/429jxt0g742l97.pdf