Why is the Hawsons Iron share price hiking 6% higher today?

We take a look at the Hawsons Iron resource upgrade.

| 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 shares are soaring more than 6% today 
  • The company advised of a mineral resource upgrade 
  • The iron ore price has also jumped by nearly 1% 

The Hawsons Iron Ltd (ASX: HIO) share price is rising today on the back of a mineral resource upgrade.

The iron ore producer's shares are rising 6% at the time of writing, trading at 43.5 cents. For perspective, the S&P/ASX 200 Materials Index is jumping 1% today.

Let's take a look at what Hawsons Iron reported to the market.

Resource upgrade

Hawsons advised that its mineral resource estimate has jumped by 21% from 400 to 484 million tonnes. This is at the Hawsons Iron Project near Broken Hill in New South Wales.

The measured and indicated resources leapt 87% from 132 to 247 million tonnes. This includes a measured resource of 54 million tonnes and an indicated resource of 193 million tonnes.

Given the strength of this resource, Hawsons predicts it can meet its target of producing 20 million tonnes of concentrate per year.

Commenting on the news, managing director Bryan Granzien said:

This upgrade is significant because having these Mineral Resources in the higher confidence
measured and indicated categories is necessary for the BFS and finalising our project financing package.

We are absolutely delighted with the outcome which now sets the scene for getting on with the next
stage of the BFS, including completion of our detailed mine design and engineering.

Granzien highlighted the new mineral resources estimate will assist in discussions with potential project financiers.

The iron ore price is up 0.97% and trading at US$104 per tonne, trading economics data shows.

Hawsons Iron share price snapshot

The Hawsons Iron share price has surged 156% in a year and 190% in the year to date.

For perspective, the Materials Index has shed nearly 16% in a year.

Hawsons has a market capitalisation of about $322 million based on the current share price.

Motley Fool contributor Monica O'Shea 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 Materials Shares

Miner looking at a tablet.
Materials Shares

Are ASX lithium shares prime real estate for value hunters?

Can these stocks recharge returns for investors?

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Are Rio Tinto shares a buy for its lithium plans?

Let's see what one leading broker is saying about the mining giant.

Read more »

Man with rocket wings which have flames coming out of them.
Materials Shares

Guess which ASX 300 lithium stock is rocketing 20% on huge Volkswagen news

Not all shares are being dragged lower by the market today.

Read more »

Dollar sign in yellow with a red falling arrow in front of a graph, symbolising a falling share price.
Materials Shares

Ouch: The Pilbara Minerals share price just hit a multi-year low

It's been a tough day for lithium investors.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Materials Shares

Big ASX news: CEO buys 2.5 million Sayona Mining shares

This CEO has finally made a big share purchase.

Read more »

Three miners looking at a tablet.
Materials Shares

Own BHP, BlueScope, Rio Tinto, and Woodside shares? Here's why they are teaming up

These companies are teaming up on an important project. What is it?

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Materials Shares

Will 2025 be a better year for the Core Lithium share price?

Will this lithium miner return to form next year? Let's find out.

Read more »

a group of enthusiastic people dash out of open doors as though in a hurry to purchase something. The picture features the legs of some people, faces of others and people in the background trying to get through the crowd.
Materials Shares

3 directors are buying this beaten-up ASX mining stock

This ASX mining stock has fallen by 23% in 2024. But Goldman Sachs is tipping huge upside over the next…

Read more »