The Hawsons Iron Ltd (ASX: HIO) share price is off to the races today, up 25%.
Shares of the ASX iron ore developer and producer closed yesterday at 39 cents and are currently trading for 48 cents.
So, what's piquing investor interest today?
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Larger project output embraced
The Hawsons Iron share price is rocketing after the company updated the market on its plans for the Hawsons Iron Project in New South Wales.
The company's Board said the Bankable Feasibility Study (BFS) for the project will now be solely on developing a 20 million tonne per annum (Mtpa) project.
The larger scope is expected to deliver better Environmental, Social and Governance (ESG) outcomes and project economics than the alternate 10 Mtpa project. Capital costs will be higher.
The Board made its decision in light of the project's Mineral Resource upgrade to 400 million tonnes, announced on 19 October.
Commenting on the decision, Hawsons Iron chair Dave Woodall said:
The team of leading global partners and specialists we've engaged to complete the BFS now have the additional information required to undertake detailed engineering design and update the project's estimated delivery timetable which we will release once completed.
Woodall added that the company still aims to complete the BFD by December 2022, with the first production from the project expected in the second half of 2024.
Also likely helping lift the Hawsons Iron share price today was its report that it had reached a non-binding Memorandum of Understanding (MOU) with Flinders Ports to co-operate on the potential development and operation of the Myponie Point Port.
Hawsons managing director Bryan Granzien said the MOU would see Flinders Ports "finance, construct, own and operate the Myponie Point Port". This would significantly cut back the company's own CapEx for the project.
According to Granzien:
Our decision to focus the BFS solely on development of a 20 Mtpa project and this milestone MOU with an operator of Flinders Ports' calibre have advanced Hawsons closer toward achieving our goal of meeting demand for high-grade products so essential for decarbonising steel making…
Myponie Port is expected to be ready to start exporting Hawsons' unique 70% Fe Hawsons Supergrade magnetite concentrate by the second half of 2024.
Hawsons Iron share price snapshot
The Hawsons Iron share price has been a stellar performer, gaining 267% over the past 12 months. To put that into some context, the All Ordinaries Index (ASX: XAO) is down 11% over that same time.
