Here's why the Hawsons Iron share price is rocketing 25% today

The ASX iron ore miner expects its flagship project to commence production in 2024.

| More on:
A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price 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

  • Hawsons Iron share price leaps 25% 
  • The miner is going with the larger annual production plans at its iron ore project in New South Wales 
  • The company’s high-grade iron ore can help decarbonise steel making 

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?

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.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. 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 Share Gainers

Man standing on rock next to turquoise salt lagoon.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a great start to the trading week today.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Austal, Breville, Telix, and Westgold shares are pushing higher today

These shares are starting the week positively. But why?

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Pointsbet, Qantas, Serko, and Yandal shares are pushing higher today

These shares are avoiding the market selloff today. But why?

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best performing ASX 200 shares in October

Did you own the best performers on the index last month? Here they are.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors copped another rough session this Thursday.

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

Mineral Resources share price rockets 16% on $1.1 billion news!

ASX 200 investors appear thrilled with Mineral Resources' latest news.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing Wednesday session for ASX investors today...

Read more »