Latest news with #HavilahResources
The Australian
6 days ago
- Business
- The Australian
Break it Down: Heavy Rare Earths primed for Prospect Hill tin perforation
Stockhead's Break it Down brings you today's leading market news in under 90 seconds. In this episode, host Tylah Tully looks at news from Heavy Rare Earths (ASX:HRE), who have entered a new deal with major shareholder Havilah Resources (ASX:HAV) and secured the rights to all minerals at Prospect Hill - South Australia's most advanced and largest known tin project. Watch the video to learn more. While Heavy Rare Earths is a Stockhead advertiser, it did not sponsor this content. Sponsored Nova Minerals has released a conceptual processing flowsheet for its 1.24Moz RPM deposit in Alaska. Sponsored Rhythm Biosciences has announced that its second-generation ColoSTAT blood test detects colorectal cancer consistently across all stages of the disease.
News.com.au
06-07-2025
- Business
- News.com.au
Heavy Rare Earths out to turn SA uranium projects into next big prize
HRE doubles down on uranium with South Australian trio Exploration manager Joseph Ogierman highlights the quality of the projects as a key attraction The company believes it is well positioned to draw serious interest from companies such as Heathgate and Boss Energy if a discovery is made Since pivoting towards uranium last year with the acquisition of three uranium projects in South Australia near established mining operators, Heavy Rare Earths has been positioning for potential acquisition interest if a major find emerges. Until that point, the company was focused on its Cowalinya rare earths project near Esperance, WA, a deposit comparable in style to the massive ion-adsorption clay types found in southern China and Myanmar, where most of the world's heavy rare earths are sourced. Despite strong progress at the project, which contains an inferred resource of 159Mt at 870ppm total rare earth oxides (TREO) and an exploration target ranging from 280 to 1390Mt at 330-1330ppm TREO, the board was finding it increasingly difficult to secure sufficient funding to move forward with the next phase of exploration and development. With an eye on the long-term value of critical minerals, Heavy Rare Earths (ASX:HRE) viewed the opportunity to acquire three assets from Havilah Resources (ASX:HAV) – in one of the world's premier uranium producing jurisdictions – as highly compelling. HRE exploration manager Joseph Ogierman told Stockhead a major selling point was the opportunity to explore quality projects, in a region with significant resource endowment and host to several active low-cost, long-life uranium operations. SA's uranium heritage powers next exploration phase Australia leads globally in uranium reserves and ranks fourth in production, with South Australia standing out as the core of the nation's uranium sector, housing 80% of its economic demonstrated resources and close to a quarter of the world's uranium supply. 'South Australia's rich history in uranium mining not only highlights its potential for future exploration but also underscores the strategic advantages it offers to companies like HRE,' Ogierman said. All three projects – Radium Hill, Lake Namba-Billeroo and Prospect Hill – sit in prospective geological settings within the Proterozoic Curnamona Province in northern South Australia. Proterozoic basement provinces in the state have been the focus of major milestones in Australia's uranium industry. Among the milestones are the initial uranium production at Radium Hill –the nation's first major uranium-only operation in the 1950s – and the subsequent development of Olympic Dam, the world's largest uranium deposit. It is also the location of two of Australia's uranium producing mines including Beverly/Four Mile, owned and operated by Heathgate Resources, and Boss Energy (ASX:BOE)'s Honeymoon project, which recently met its FY25 production target having produced 328,102 pounds of yellowcake in the June quarter. 'Lake Namba-Billeroo and Prospect Hill are sediment-hosted uranium targets within known paleochannels and about 30km of the Billeroo palaeochannel – only 13km downstream from Boss Energy's Gould's Dam uranium resource – which has not been tested by a single drill hole,' Ogierman added. HRE has rights to about 50km of strike length of the paleochannel, both upstream and downstream of Gould's Dam. Brownfield and greenfield opportunities The pipeline of projects spans brownfields at Radium Hill and greenfields at Lake Namba-Billeroo and Prospect Hill, with the latter featuring a geological analogue to the Beverley Group and in particular Four Mile-style sedimentary hosted uranium deposits with no historical drill testing. Over at Radium Hill, Ogierman believes there is considerable potential to discover high-grade extensions along the main lode system northeast of the Radium Hill Mine, which produced 2.6Mlbs of U308 at 1200ppm during 1954-1961. 'Radium Hill has the additional bonus of significant upside as a greenfield target for scandium and rare earths,' he said. 'Although these elements were identified in the early 1900s, they were largely ignored during uranium mining in the 1950s. 'There hasn't been any systematic sampling for either scandium or rare earths since the identification of both these minerals.' Recent reconnaissance sampling by HRE at the site returned high-grade values for scandium and rare earths in March up to 16,273ppm US08, 1,081ppm Sc203 and 36,371ppm TREO, potentially expanding the search profile for the project. Plans for remainder of the year While there is no clear prospect priority at this early stage of development, due to the paucity of drilling data along HRE's portion of the Billeroo palaeochannel and lack of any drilling data at Prospect Hill, Ogierman said the company aimed to gain a better understanding of the prospectivity of potential host sequences. 'At Radium Hill the focus is on understanding possible structural controls of mineralisation at the historical Radium Hill Mine and whether these controls can be identified along strike,' he said. 'Coincidently, it is important to understand the distribution of scandium and rare earths and their relationship with uranium mineralisation. 'We have undertaken first-pass geophysical surveys since acquiring the projects including passive seismic surveys at Billeroo and Prospect Hill and an airborne geophysical (magnetic and radiometric) survey at Radium Hill,' he added. 'Data for each project has been processed and is currently being integrated with all available geological and open file geophysical information to construct mineral system models. 'The immediate goal is for this process to deliver a pipeline of targets at Billeroo, Prospect Hill and Radium Hill in the next couple of months which will be ranked for drill testing in the second half of this year.' In preparation, HRE has begun engaging with local landowners and is in the process of preparing drilling approval applications for submission to the state government. HRE is also working closely with the relevant Native Title groups to undertake Aboriginal cultural heritage clearances in accordance with established protocols. 'We anticipate this to be a straightforward process as Havilah Resources, the tenement holder for all HRE projects, has developed relationships with landowners and traditional custodians over nearly three decades of successful exploration work,' Ogierman said. A likely target for M&A activity With its projects in the same uranium-rich province and targeting the same deposit style as major ISR operations like Beverly/Four Mile and Honeymoon, HRE reckons it is well positioned to draw serious interest from companies such as Heathgate and Boss Energy should a discovery be made. 'We anticipate intense interest by at least those companies, perhaps others, in any uranium discoveries made by HRE,' he said. 'Our Prospect Hill asset is surrounded on three sides by US-based Heathgate Resources, with other uranium focused explorers in the area including Orpheus Uranium, Koba Resources and another US-based company Tristar. 'We believe HRE represents a potential low-cost entry into the uranium supply chain should we be fortunate enough that discovery success comes our way,' he added.
Yahoo
18-04-2025
- Business
- Yahoo
Havilah Resources' (ASX:HAV) Profits May Be Overstating Its True Earnings Potential
Shareholders didn't seem to be thrilled with Havilah Resources Limited's (ASX:HAV) recent earnings report, despite healthy profit numbers. We think that they might be concerned about some underlying details that our analysis found. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To understand the value of a company's earnings growth, it is imperative to consider any dilution of shareholders' interests. Havilah Resources expanded the number of shares on issue by 7.1% over the last year. As a result, its net income is now split between a greater number of shares. To talk about net income, without noticing earnings per share, is to be distracted by the big numbers while ignoring the smaller numbers that talk to per share value. Check out Havilah Resources' historical EPS growth by clicking on this link. Three years ago, Havilah Resources lost money. The good news is that profit was up 8.1% in the last twelve months. But EPS was less impressive, up only 5.7% in that time. And so, you can see quite clearly that dilution is influencing shareholder earnings. Changes in the share price do tend to reflect changes in earnings per share, in the long run. So it will certainly be a positive for shareholders if Havilah Resources can grow EPS persistently. However, if its profit increases while its earnings per share stay flat (or even fall) then shareholders might not see much benefit. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Havilah Resources. Finally, we should also consider the fact that unusual items boosted Havilah Resources' net profit by AU$2.3m over the last year. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. And, after all, that's exactly what the accounting terminology implies. We can see that Havilah Resources' positive unusual items were quite significant relative to its profit in the year to January 2025. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power. To sum it all up, Havilah Resources got a nice boost to profit from unusual items; without that, its statutory results would have looked worse. And furthermore, it went and issued plenty of new shares, ensuring that each shareholder (who did not tip more money in) now owns a smaller proportion of the company. For the reasons mentioned above, we think that a perfunctory glance at Havilah Resources' statutory profits might make it look better than it really is on an underlying level. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. To help with this, we've discovered 3 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Havilah Resources. Our examination of Havilah Resources has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
