Hawsons Iron share price slumps 9% then rebounds following project update

The iron ore explorer is another step closer to bringing its flagship project to life.

| More on:
Two smiling men in high visibility vests and yellow hardhats stand side by side with a large mound of earth and mining equipment behind them smiling as the Carnaby Resources share price rises today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Hawsons Iron share price is recovering its early morning losses after management announced further progress on the flagship Broken Hill project
  • Management has appointed Australian Mine Design and Development (AMDAD) to produce a complete mine plan  
  • Hawsons Iron shares have recovered from early morning losses during the broader market sell-off 

A new progress report looks like it may have saved the Hawsons Iron Ltd (ASX: HIO) share price from the big market sell-off today.

Hawsons Iron shares dipped to an intraday low of 56 cents in early trading — a 9.7% drop on yesterday's close of 62 cents. Then just after noon, the iron ore explorer announced it's another step closer to bringing its flagship project to life.

Management has appointed Australian Mine Design and Development (AMDAD) as the mining consultant. This follows the awarding of other key Bankable Feasibility Study (BFS) contracts earlier this year.

AMDAD will be responsible for preparing a complete mine plan. This will include final pit design, mining sequence, implementing schedules, fleet composition, mine power requirements, and costings and pathways to net-zero emissions.

Hawsons Iron trying to reach net zero

Just prior to AMDAD's appointment, management received a report from the consulting arm of Worley Ltd (ASX: WOR), Advisian. The report detailed the ideal energy balance to optimise the project's ESG and sustainability outcomes.

Hawsons Iron's executive chairman Bryan Granzien said:

Advisian has also developed a sustainability framework to enable us to embed material sustainability considerations within the project's decision making and value improvement processes.

The aim of this framework will be to minimise any exposure to risks from material sustainability issues and maximise any opportunities for beneficial outcomes.

Hawsons Iron outshines other ASX resources shares

Many ASX resources shares are on the nose on Thursday. The large crash in US equities last night and lower commodity prices are to blame.

Sector leaders like Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG), and BHP Group Ltd (ASX: BHP) are down 1.5% to 2%.

At the time of writing, the Hawsons Iron share price has recovered almost all of this morning's losses. It is now down just 0.81%.

Rain presents a challenge

Hawsons Iron is developing the Hawsons Iron Project, which is 60km southwest of Broken Hill in New South Wales.

That region is experiencing very wet weather that is hampering the miner's operations. It is trying to mitigate this and expedite analysis on a large number of drill samples it has dug up.

Granzien added:

The Bureau Veritas laboratory in Adelaide has been working 24/7 on the analysis of 500 samples a week to generate the assay results required to update the project's Mineral Resource estimates as scheduled before the end of this quarter.

Everyone's been working around the clock to ensure we can deliver on time and meet our schedules despite ongoing weather disruptions.

Longer-term Hawsons Iron shareholders are unlikely to worry about today's share price volatility. The shares have gained more than 400% in value over the past 12 months.

Motley Fool contributor Brendon Lau has positions in BHP Billiton Limited, Fortescue Metals Group Limited, Rio Tinto Ltd., and WorleyParsons Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Female miner in hard hat and safety vest on laptop with mining drill in background.
Resources Shares

Why this expert says it's time to sell Lynas shares

Lynas shares have come under heavy selling pressure in recent weeks.

Read more »

Business people standing at a mine site smiling.
Resources Shares

Forget Fortescue shares and buy this miner

A leading broker expects these two mining shares to trade in opposite directions.

Read more »

A mining worker wearing a white hardhat and a high vis vest stands on a platform overlooking a huge mine, thinking about what comes next.
Dividend Investing

BHP shares have fallen out of the global top 20 dividend payers. Here's why

Global dividends continue to climb.

Read more »

Miner standing in front of a vehicle at a mine site.
Resources Shares

Is the worst now over for Mineral Resources shares?

What's next for the miner?

Read more »

A miner holding a hard hat stands in the foreground of an open cut mine
Resources Shares

A close look at BHP shares. What is the mining giant's next move?

Let's take stock of what the experts think.

Read more »

Miner looking at a tablet.
Resources Shares

Short bets on Pilbara Minerals shares are declining. Is now the time to buy?

Could the trade be unwinding?

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

'I hate what I have done': Mineral Resources share price down as Ellison laments actions

Managing Director Chris Ellison says he deeply regrets the impact of his 'error of judgement'.

Read more »

A man in shirt and tie uses his mobile phone under water.
Resources Shares

The Lake Resources share price is sinking yet again. Here's why

The longer-term downtrend continues.

Read more »