NEWS. RESOURCES. DADVICE. THE HOME OF MEN-TERTAINMENT

Guess which ASX iron ore share has surged more than 260% in a month. Hint: it’s not Fortescue

SHARE

The S&P/ASX 200 Index (ASX: XJO) may be in the red in the past month, but one ASX iron ore share is bucking the trend.

The Hawsons Iron Ltd (ASX: HIO) share price has surged 263%, from 29 cents at market open on 4 April to its current price of $1.055. In contrast, the benchmark ASX 200 Index has fallen about 2% over the same time frame.

Let’s take a look at why the Hawsons Iron share price is surging.

The Hawsons Iron share price has been steadily increasing for most of the month. In today’s trade, the company’s share price is up 19.21% despite no news from the company.

This ASX iron ore company is exploring the Hawsons Iron Project, 60km southwest of Broken Hill in New South Wales. Hawsons secured 100% control of the project in late March. The company bought out Starlight Investment Company’s 6% interest in the venture.

On 12 April, Hawsons announced the federal government has renewed major project status on the project for another three years. In the letter of approval, federal energy minister Angus Taylor said:

The decision to grant major project status is based on the opportunity your project offers through supply of its high-quality magnetite product being a preferred input to the making of low emissions steel.

Hawsons reported a cash balance of $18.377 million in the third quarter of 2022. During the quarter, the Bankable Feasibility Study (BFS) scope and budget was expanded to assess a 20 million tonne per annum (MTpa) option for the mine. Commenting on this news, executive chairman Bryan Granzien said:

We owe it to our shareholders and stakeholders to investigate a 20 Mtpa operation to unlock the full potential of this large-scale iron ore resource.

The company reported iron ore prices jumped during the quarter in response to increasing demand from China. Hawsons noted this increase provided “further support for a pleasing lift in the company’s share price”.

The Hawsons Iron share price has surged a whopping 2,397% in the past year, while it has rocketed 603% year to date.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 4% over the past year.

Hawsons has a market capitalisation of roughly $754 million based on today’s share price.

Source: Read More

We’ve Already Come Too Far To End This Now.

Subscribe To Our Weekly Newsletter

Get notified about new articles