The Hawsons Iron Ltd (ASX: HIO) share price has been on a rollercoaster ride today.
The company’s shares have closed down 18.64% to 72 cents. However, in earlier trade, the Hawsons Iron share price surged 21% above yesterday’s closing price of $1.07 before retreating.
For perspective, the S&P/ASX 200 Resources Index (ASX: XJR) closed 0.84% lower today. The shares of iron ore giant Fortescue Metals Group Ltd (ASX: FMG) shed 4.69%.
So what caused this ASX iron ore’s share price to fluctuate today?
Share price fluctuates
The Hawsons Iron share price went up and down like a yo-yo today despite no news from the company.
It’s exploring the Hawsons Iron Project, 60km southwest of Broken Hill in New South Wales.
In today’s news, the Reserve Bank of Australia (RBA) has lifted the cash rate by 25 basis points to 35 basis points. As my Foolish colleague James reported, this sent the S&P/ASX 200 Index (ASX: XJO) down within minutes. The RBA board is preparing to increase interest rates further in the future. Interest rate rises can increase costs for many ASX shares, including mining companies.
The iron ore price is flat today, however, it has fallen nearly 7.79% in a month, Trading Economics data shows.
The Hawsons Iron Project has recently been granted a three-year extension of its major project status from the federal government.
The company reported an $18.377 million cash balance in quarterly results, up to 31 March 2022.
Share price snapshot
The Hawsons Iron share price has surged about 1,675% in the past year while it has rocketed 168% in the past month.
For perspective, the benchmark ASX index has gained about 4% over the past year.
Hawsons Iron has a market capitalisation of about $536 million based on the current share price.