Why Has Construction Begun at Havieron for Greatland Resources (ASX:GGP)?

Sonal Goyal

10 November 2026 05:04 PM AEDT

Why Has Construction Begun at Havieron for Greatland Resources (ASX:GGP)?

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Key Highlights

• According to the quarterly report, Capital spent on Havieron in the quarter was A$45.2 million, Lycopodium has been appointed as delivery partner, and early work includes evaporation ponds and a drill pad for a blind bore.

• The blind bore contractor, Abergeldie, was targeting site establishment in October 2026.

• The company has said GR Engineering Services has been awarded early contractor engagement for the Telfer Train 1 upgrade.

• In the September 2026 quarter, the company sold 71,901 ounces of gold at a realised price of A$5,980 per ounce, generating A$485 million of net revenue.

Why has construction begun at Havieron, and what does it mean for Greatland Resources (ASX:GGP)? In its September 2026 quarterly report, released on 26 October 2026, the company said construction at Havieron formally commenced in September after all secondary approvals were received. For a Business built around the Telfer gold-copper operation in Western Australia's Paterson Province, it marks a shift from planning to physical delivery of its next growth phase.

The central development: Havieron moves into construction

Havieron is a gold-copper deposit near Telfer, and the plan is to access it by underground development and process its ore through Telfer's existing plant. According to the quarterly report, capital spent on Havieron in the quarter was A$45.2 million, Lycopodium has been appointed as delivery partner, and early work includes evaporation ponds and a drill pad for a blind bore. The blind bore contractor, Abergeldie, was targeting site establishment in October 2026.

Why does this matter? Gold producers with a single main operation depend heavily on that site. A second source of ore, if delivered, can lift throughput and reduce concentration risk, although it also demands capital and brings construction risk. The company has said GR Engineering Services has been awarded early contractor engagement for the Telfer Train 1 upgrade.

What the company does and how it earns revenue

Greatland owns Telfer and Havieron. Telfer is an established open pit and underground operation producing gold and copper. Revenue is driven mainly by gold sales, with copper as a by-product. In the September 2026 quarter, the company sold 71,901 ounces of gold at a realised price of A$5,980 per ounce, generating A$485 million of net revenue.

Production was 70,131 ounces of gold and 2,927 tonnes of copper, down from 79,100 ounces of gold in the June quarter. The All-In Sustaining Cost (AISC) was A$2,925 per ounce, up from A$2,312 per ounce in the June quarter. Gold recovery was 85.1%.

Financial results and balance sheet

Closing cash at 30 September 2026 was A$1,314 million, compared with A$1,289 million at 30 June 2026. The A$25 million increase came after A$100 million of tax instalments. The company has no Debt drawn and reported total Liquidity of A$1,789 million, including A$475 million of undrawn revolving Credit facilities. It expects a catch-up tax payment of about A$155 million in December 2026.

A headline from a financial news site stated that Greatland beat its FY26 guidance, with 328,987 ounces of gold produced and cash of A$1.29 billion.

For FY27, Greatland reiterated guidance of 260,000 to 300,000 ounces of gold at an AISC of A$2,900 to A$3,330 per ounce, with production modestly weighted to the second half.

Hedging and growth spending

Greatland holds gold put options covering 149,998 ounces over four quarters through September 2027, with a weighted average Strike Price of A$4,850 per ounce. Put options set a price floor for the covered ounces while leaving upside open, though they involve an upfront premium and do not protect the uncovered portion of production.

Growth spending continues at Telfer. Capital of A$37.2 million went on tailings storage, open pit fleet renewal, pre-stripping and underground development. The West Dome Underground development broke through in early October. The company drilled 51 kilometres of growth drilling and 22 kilometres of conversion drilling in the quarter, and approved a second surface diamond rig for the Pinnacles Prospect.

Sector conditions and competitive position

Gold producers have operated in a favourable price environment, and Greatland's realised price of A$5,980 per ounce is well above its AISC. That wide Margin explains the encouraging cash balance, but costs are rising: AISC rose by about A$600 per ounce quarter on quarter, and the FY27 AISC guidance range is wide.

Remote Western Australian operations compete for labour, contractors and equipment with the broader resources sector, which can put pressure on costs and schedules. Greatland's advantage is a large processing plant and infrastructure already in place at Telfer, with Havieron intended to feed it. The company's weaker point is concentration, since all production comes from one district.

Reading the quarter

Two points stand out. First, the fall in production from 79,100 ounces to 70,131 ounces coincided with a planned shutdown, so it may not signal a change in underlying performance, although the company's own guidance for a modestly second-half-weighted year suggests management expects output to rise. Second, the jump in AISC reflects lower ounces spreading fixed costs and higher growth spending, which is the author's interpretation rather than a company statement.

Material risks and what to watch

The first risk is the gold price and the Australian dollar. A fall in either would reduce margins, particularly with AISC rising. Put options cover only part of expected output.

The second is construction and delivery risk at Havieron. Underground developments, blind bore drilling and plant upgrades are complex, and delays or overruns could affect timing and returns. Operational risk at Telfer, including grades, recoveries and maintenance shutdowns, also matters, as the September quarter showed.

A third consideration is capital allocation. With substantial cash and no drawn debt, the company has flexibility, but Investment in two sites and tax payments, including the expected A$155 million catch-up in December 2026, will absorb funds.

Upcoming developments include blind bore site establishment, early works at Havieron, the Telfer Train 1 upgrade, progress at West Dome Underground, the December 2026 tax payment and the next quarterly report.

In short, Greatland's latest report shows a producer with a encouraging cash position and margins, now committing to its second ore source. Delivery and costs will determine how that investment performs.

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