HVY: Annual Report to shareholders

Original announcement by asx on

Company
Heavy Minerals Limited
Ticker
HVY
Exchange
ASX
Region
Unavailable
Primary commodity
Garnet
Secondary commodities
Ilmenite
Document categories
Other, Resource update, Capital raise
Extracted
2026-10-02 06:10:20 UTC

Analysis by Minestarters Atlas

Atlas analysis published:

Minestarters Atlas analysis

Summary

Heavy Minerals Limited reported a significant loss for the year ended June 30, 2026, and faces a material uncertainty regarding its ability to continue as a going concern due to a net working capital deficit. Despite financial challenges, the company made substantial progress on its projects, including completing a Pre-Feasibility Study for the Port Gregory Garnet Project, which returned a post-tax NPV of A$322.8 million and a 47.6% IRR, along with a maiden Probable Ore Reserve of 85.5 Mt at 4.43% THM. Additionally, the company secured a binding Tailings Processing Agreement for the Kanmantoo Garnet Project, targeting initial production in H1 2027.

Reasoning: Despite positive operational advancements including a strong Port Gregory PFS and a Kanmantoo production agreement, the company reported a substantial financial loss and received an auditor's warning regarding its ability to continue as a going concern, indicating significant financial risk.

Positive factors

  • Strong Pre-Feasibility Study results for Port Gregory
  • Maiden Probable Ore Reserve for Port Gregory
  • Binding Tailings Processing Agreement for Kanmantoo
  • Targeting near-term production at Kanmantoo

Negative factors

  • Significant net loss for the year
  • Material uncertainty regarding continuation as a going concern
  • Net working capital deficit
  • Preliminary nature of project funding discussions

Low confidence — this extraction should be reviewed alongside the original source.

Facts used in scoring: 17

Classification and evidence

Going Concern Warningnegative · Story-specific tag

No canonical definition is currently available.

Why it applies: The auditor's report highlights a material uncertainty regarding the company's ability to continue as a going concern due to net loss and working capital deficit.

Evidence · text

“Material Uncertainty Regarding Continuation as a Going Concern”

Extracted facts

Stored fact records: 5. Some facts used in scoring do not have a stored record.

Resource Estimates (5)

measuredPort Gregory Garnet Project · garnetTonnes: 126000000Grade: 3.8Grade Unit: % THMContained Metal: 5.9Contained Unit: mtHistorical resultNeeds review: historical_restatementView all details
Link to this fact

Identity

Project
Port Gregory Garnet Project
Commodity
garnet
Region
australia_wa
Reported Region
Western Australia
Ticker
HVY

Resource scope

Estimate type
resource
Reporting standards
jorc
QP Signed
Yes
Qualified person names
Greg Jones
Resource group id
resource:dd62070cfe1b93c05bd3

Resource Data

Category
measured
Tonnes
126000000
Grade
3.8
Grade Unit
% THM
Contained Metal
5.9
Contained Unit
mt
Cutoff Grade
2
Cutoff Unit
% THM

Prior Estimate

Resource Date
2023-07-10

Review

Needs Review
Yes
Review Reason
historical_restatement
Historical
Yes
Historical Source Date
2023-07-10T00:00:00.000Z

Dates

Event date
2026-10-02T00:00:00.000Z

Reasoning: This mineral resource estimate is a restatement of a previously reported estimate and remains unchanged, indicating low novelty.

Negative factors

  • Stale Data Re-release

Evidence · text

“Measured Mineral Resource of 126 Mt @ 3.8% THM, an Indicated Mineral Resource of 20 Mt @ 6.5% THM and an Inferred Mineral Resource of 20 Mt @ 2.9% THM, and containing 5.9 million tonnes of garnet.”

Tags used in scoring

Measured Resourcepositive

Highest confidence category — tonnage, grade, shape well-established from closely-spaced drilling. Basis for Proven Reserves.

Why it applies: category is "measured"

Cut-off Disclosedpositive

Cut-off grade used for resource reporting is clearly stated, enabling like-for-like comparison.

Why it applies: cutoff_grade is stated

QP/CP Signedpositive

Qualified Person (QP) or Competent Person (CP) named and signed off — a member of a recognized professional association (e.g., AusIMM, SME, AIG, P.Geo) with relevant experience.

Why it applies: qp_signed is true

JORC Compliantpositive

Resource estimate prepared in compliance with JORC Code (Australia) — high reporting standard.

Why it applies: reporting_standards includes jorc

Stale Estimatenegative

Effective date is >2 years old — data currency concern, may not reflect current geological understanding.

Why it applies: effective date is 3.2 years before this release

indicatedPort Gregory Garnet Project · garnetTonnes: 20000000Grade: 6.5Grade Unit: % THMContained Metal: 5.9Contained Unit: mtHistorical resultNeeds review: historical_restatementView all details
Link to this fact

Identity

Project
Port Gregory Garnet Project
Commodity
garnet
Region
australia_wa
Reported Region
Western Australia
Ticker
HVY

Resource scope

Estimate type
resource
Reporting standards
jorc
QP Signed
Yes
Qualified person names
Greg Jones
Resource group id
resource:0aae078f8755350b9eaf

Resource Data

Category
indicated
Tonnes
20000000
Grade
6.5
Grade Unit
% THM
Contained Metal
5.9
Contained Unit
mt
Cutoff Grade
2
Cutoff Unit
% THM

Prior Estimate

Resource Date
2023-07-10

Review

Needs Review
Yes
Review Reason
historical_restatement
Historical
Yes
Historical Source Date
2023-07-10T00:00:00.000Z

Dates

Event date
2026-10-02T00:00:00.000Z

Reasoning: This mineral resource estimate is a restatement of a previously reported estimate and remains unchanged, indicating low novelty.

Negative factors

  • Stale Data Re-release

Evidence · text

“Measured Mineral Resource of 126 Mt @ 3.8% THM, an Indicated Mineral Resource of 20 Mt @ 6.5% THM and an Inferred Mineral Resource of 20 Mt @ 2.9% THM, and containing 5.9 million tonnes of garnet.”

Tags used in scoring

Indicated Resourcepositive

Reasonable geological confidence based on adequate drilling; continuity can be assumed. Basis for Probable Reserves.

Why it applies: category is "indicated"

Cut-off Disclosedpositive

Cut-off grade used for resource reporting is clearly stated, enabling like-for-like comparison.

Why it applies: cutoff_grade is stated

QP/CP Signedpositive

Qualified Person (QP) or Competent Person (CP) named and signed off — a member of a recognized professional association (e.g., AusIMM, SME, AIG, P.Geo) with relevant experience.

Why it applies: qp_signed is true

JORC Compliantpositive

Resource estimate prepared in compliance with JORC Code (Australia) — high reporting standard.

Why it applies: reporting_standards includes jorc

Stale Estimatenegative

Effective date is >2 years old — data currency concern, may not reflect current geological understanding.

Why it applies: effective date is 3.2 years before this release

inferredPort Gregory Garnet Project · garnetTonnes: 20000000Grade: 2.9Grade Unit: % THMContained Metal: 5.9Contained Unit: mtHistorical resultNeeds review: historical_restatementView all details
Link to this fact

Identity

Project
Port Gregory Garnet Project
Commodity
garnet
Region
australia_wa
Reported Region
Western Australia
Ticker
HVY

Resource scope

Estimate type
resource
Reporting standards
jorc
QP Signed
Yes
Qualified person names
Greg Jones
Resource group id
resource:16c9ffe42e70d6fe53c3

Resource Data

Category
inferred
Tonnes
20000000
Grade
2.9
Grade Unit
% THM
Contained Metal
5.9
Contained Unit
mt
Cutoff Grade
2
Cutoff Unit
% THM

Prior Estimate

Resource Date
2023-07-10

Review

Needs Review
Yes
Review Reason
historical_restatement
Historical
Yes
Historical Source Date
2023-07-10T00:00:00.000Z

Dates

Event date
2026-10-02T00:00:00.000Z

Reasoning: This mineral resource estimate is a restatement of a previously reported estimate and remains unchanged, indicating low novelty.

Negative factors

  • Stale Data Re-release

Evidence · text

“Measured Mineral Resource of 126 Mt @ 3.8% THM, an Indicated Mineral Resource of 20 Mt @ 6.5% THM and an Inferred Mineral Resource of 20 Mt @ 2.9% THM, and containing 5.9 million tonnes of garnet.”

Tags used in scoring

Inferred Resourcenegative

Speculative category — limited drilling, geological continuity assumed but not confirmed. Cannot support economic studies alone.

Why it applies: category is "inferred"

Cut-off Disclosedpositive

Cut-off grade used for resource reporting is clearly stated, enabling like-for-like comparison.

Why it applies: cutoff_grade is stated

QP/CP Signedpositive

Qualified Person (QP) or Competent Person (CP) named and signed off — a member of a recognized professional association (e.g., AusIMM, SME, AIG, P.Geo) with relevant experience.

Why it applies: qp_signed is true

JORC Compliantpositive

Resource estimate prepared in compliance with JORC Code (Australia) — high reporting standard.

Why it applies: reporting_standards includes jorc

Stale Estimatenegative

Effective date is >2 years old — data currency concern, may not reflect current geological understanding.

Why it applies: effective date is 3.2 years before this release

probablePort Gregory Garnet Project · garnetTonnes: 85500000Grade: 4.43Grade Unit: % THMContained Metal: 3.3Contained Unit: mtView all details
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Identity

Project
Port Gregory Garnet Project
Commodity
garnet
Region
australia_wa
Reported Region
Western Australia
Ticker
HVY

Resource scope

Estimate type
reserve
Reporting standards
jorc
QP Signed
Yes
Qualified person names
Adrian Jones
Resource group id
resource:3c8e889d43a51f2fa7b5

Resource Data

Category
probable
Tonnes
85500000
Grade
4.43
Grade Unit
% THM
Contained Metal
3.3
Contained Unit
mt

Prior Estimate

Resource Date
2026-07-08

Review

Needs Review
No
Historical
No

Dates

Event date
2026-10-02T00:00:00.000Z

Reasoning: The announcement of a maiden Probable Ore Reserve for the Port Gregory project is a significant de-risking event, indicating economic viability and advancing the project towards development.

Positive factors

  • Maiden Probable Ore Reserve
  • JORC Compliant

Evidence · text

“maiden Probable Ore Reserve of 85.5 Mt at 4.43% THM for 3.3 Mt of contained garnet (effective 8 July 2026)”

Tags used in scoring

Cut-off Undisclosednegative

High-grade interval reported without stating the cut-off grade used for compositing.

Why it applies: no cutoff_grade was stated

QP/CP Signedpositive

Qualified Person (QP) or Competent Person (CP) named and signed off — a member of a recognized professional association (e.g., AusIMM, SME, AIG, P.Geo) with relevant experience.

Why it applies: qp_signed is true

inferredInhambane Heavy Mineral Project · ilmeniteTonnes: 90000000Grade: 3Grade Unit: % THMHistorical resultNeeds review: historical_restatementView all details
Link to this fact

Identity

Project
Inhambane Heavy Mineral Project
Commodity
ilmenite
Region
mozambique
Reported Region
Mozambique
Ticker
HVY

Resource scope

Estimate type
resource
Reporting standards
jorc
QP Signed
Yes
Qualified person names
Greg Jones
Resource group id
resource:99dea0e073e94bc6ee24

Resource Data

Category
inferred
Tonnes
90000000
Grade
3
Grade Unit
% THM

Prior Estimate

Resource Date
2021-12-06

Review

Needs Review
Yes
Review Reason
historical_restatement
Historical
Yes
Historical Source Date
2021-12-06T00:00:00.000Z

Dates

Event date
2026-10-02T00:00:00.000Z

Reasoning: This is a restatement of a previously reported Inferred Mineral Resource, indicating low novelty and early stage of confidence.

Negative factors

  • Stale Data Re-release
  • All Inferred

Evidence · text

“ilmenite-dominated JORC (2012) Inferred Mineral Resource of 90 million tonnes @ 3.0% THM.”

Tags used in scoring

Cut-off Undisclosednegative

High-grade interval reported without stating the cut-off grade used for compositing.

Why it applies: no cutoff_grade was stated

QP/CP Signedpositive

Qualified Person (QP) or Competent Person (CP) named and signed off — a member of a recognized professional association (e.g., AusIMM, SME, AIG, P.Geo) with relevant experience.

Why it applies: qp_signed is true

No Contained Metalnegative

Tonnage and grade reported but contained metal not calculated or disclosed — incomplete reporting.

Why it applies: contained_metal was not reported

Stale Estimatenegative

Effective date is >2 years old — data currency concern, may not reflect current geological understanding.

Why it applies: effective date is 4.8 years before this release

How Atlas produces this analysis

Minestarters Atlas uses automated extraction to summarize mining announcements, identify reported measurements, and classify supporting evidence. Sentiment reflects the extracted narrative and classification rules; it is an interpretation, not a reported measurement. Evidence quotes and context are provided where available. Missing data, low-confidence results, and review flags indicate limitations. Check the original publisher announcement before relying on an interpretation.