Ann: Quarterly Activities Report - Period Ending 31 January 2019, page-4

Not trying to be too negative, in looking back over my list of what I expected in the quarterly, I think they did an ok job at saying where North Portia, Kalkaroo and Iron ore projects are up to.

They tried to look at cashflow - but as above disappointing that they either didn't get the problems with their own cashflow or tried to fool the shareholders.  Not sure which is worse, but neither is a good was to restore shareholder trust in current management.

They commented on the changes to the board, but nothing about any other management changes that I thought past comments were implying would happen.

From a communication perspective, but for the cashflow issue, I will give it a pass.

But from a strategy perspective, my concern is this.  Their highest priority appears to be Mutooroo.  It is the first project mentioned in the quarterly and at the top of the scorecard.  Why?  I didn't think we had the cash to drill.  They plan to drill along strike in the September Quarter and Drill at depth in the fourth quarter as well as drill district targets.  I thought drilling costs money and money we don't have.  The cost of drilling does not appear to be in the cashflow budget from what I can tell (someone with a better understanding of the cost of drilling can let me know if I'm wrong).

Further, drilling Mutooroo is not going to change the share price.  The market know's what is likely to be there and it won't excite the market or bring anticipation.  Perhaps drilling Jupiter might bring anticipation and excitement.

If HAV is going to get some cash, it is going to come from Kalkaroo or the iron ore projects.  If I was on the board, I would forget about Mutooroo for a while and put all my energy and attention into Kalkaroo and getting ready for the alternatives for the iron ore projects (consider who else would be interested in Grants and be ready to make contact at the end of March if SIMEC not willing to purchase or pay further to extend).

In respect of Kalkaroo, they do say they "are actively engaged with several potential development partners in order to ascertain their level of interest and their investment expectations for Kalkaroo.   But these discussion are at an early stage..... In the meantime, Havilah expects to complete the updated Kalkaroo PFS in the second half of 2019."  

But the scrorecard says "Kalkaroo complete PFS" in the quarter ended 30 September 2019, which is later than the second half of 2019.  So it is not clear when it will be completed.

HAV management have been reluctant to sell Kalkaroo without improving the economics of Kalkaroo, so completing the Kalkaroo PFS really needs to be priority in my opinion.  Or management needs to be prepared to let it go for what they can get (because what they can sell it for is all that it is worth and let others take on the risk of development and mining).