Is the party over for the Hawsons Iron share price?

It's been a tough month for Hawsons shares.

Key points
  • Hawsons shares have fallen around 55% from their record high of $1.08 achieved in early May
  • Currently, the iron ore miner's shares are trading at 49 cents apiece
  • A severe pullback on the ASX has dragged down investor sentiment which has, in turn, impacted Hawsons shares

The Hawsons Iron Ltd (ASX: HIO) share price has been at the forefront of investor attention since the start of April.

The company's shares accelerated from 28 cents on 1 April to reach an all-time high of $1.08 during intraday trading on 3 May, before ending the day at 72 cents. At its intraday high, this represented an astonishing gain of around 285% in a little over a month.

However, since then, the resource developer's shares have continued to trend lower.

At Friday's market close, the Hawsons Iron share price finished 2.08% higher at 49 cents.

A sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile.

Image source: Getty Images

What's happened to Hawsons shares?

A couple of company announcements during April helped drive up the Hawsons share price.

However, the general market downturn on the All Ordinaries Index (ASX: XAO) has since created strong selling pressure.

For context, as at Friday's close, the All Ords had lost more than 8% since 1 April. Fears about rising interest rates and the risk of recession in the first half of next year have weighed on investor sentiment.

While Hawsons shares have dipped to mid-April levels, they are still up by around 190% so far this year.

The company is focused on developing the Hawsons Iron Project in Broken Hill, New South Wales. Discovered in 2009, it is considered to be the world's biggest, undeveloped, high-quality iron ore project.

Following a successful pre-feasibility study in 2017, management is now focused on progressing the project. This includes progressing a bankable feasibility study, obtaining a mining lease and beginning production by mid-2024.

Is the Hawsons Iron share price set to fall further?

Previously known as Carpentaria Resources, Hawsons Iron shares have surged by around 280% over the past 12 months.

While it's anyone's guess what will happen over the long term, for now, the company's shares appear destined to fall further. This is due to Wall Street entering bear market territory last night Aussie time, which is set to cause widespread sell-off on the ASX today.

Based on the last closing price, Hawsons commands a market capitalisation of roughly $347 million.

Motley Fool contributor Aaron Teboneras 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.

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