Guess which little ASX iron ore stock is surging 68% on big news

Investors are bidding up the iron ore miner following a promising project update.

| More on:
Man pointing at a blue rising share price graph.

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

A little-known ASX iron ore stock is bucking the broader market sell-down today.

Big time.

In afternoon trade on Tuesday, the All Ordinaries Index (ASX: XAO) is down a painful 2.0% amid global concerns over escalating tensions in the Middle East.

But that's not holding back this tiny mining stock, with investors heating up the buy button following a promising update on its iron ore project.

Shares in the ASX iron ore miner closed yesterday trading for 3.4 cents.

In earlier trade today, shares were changing hands for 5.7 cents apiece, up a whopping 67.6%. After some likely profit-taking, shares are trading for 4.8 cents at the time of writing, up 41.2%.

Any guesses?

If you said Hawsons Iron Ltd (ASX: HIO), give yourself a virtual gold star.

Here's what's piquing ASX investor interest.

What's sending the ASX iron ore stock surging?

The Hawsons Iron share price is flying higher after the company released an update on its Hawsons Iron Project.

This comes following a review of the results from work undertaken in response to the action plan recommended by the Strategic Review in February 2023.

Likely lifting the ASX iron ore stock today is the company's revelation that it has confidentially provided a detailed Information Memorandum (IM) with these results to seven potential strategic investors. This is aimed at helping fund the iron ore project's Bankable Feasibility Study (BFS).

The strategic investors, which include miners, trading houses and steel mills, were selected to undertake detailed due diligence appraisal for the BFS funding.

The miner also announced it has completed the Phase 2A Stantec testwork program and has confirmed and defined the base Phase 1 comminution flowsheet as well as the selection of major equipment for the project.

The high-grade magnetite concentrate will be transported to the Port of Adelaide by rail using existing transport infrastructure, which management said will significantly reduce upfront capital costs and project risk.

What did management say?

Commenting on the project update sending the ASX iron ore stock soaring today, Hawsons Bryan Granzien said:

We've completed the first stage of our strategic investor process and provided a copy of the IM, financial model and other associated documents to these parties who have qualified following initial presentations and discussions.

We aim to complete this strategic investor process within the next few months and commence work on the BFS immediately if successful.

Hawsons chair Jeremy Kirkwood said he was pleased by the potential partnerships for the project.

"This follows extensive work done by the Company that has set a solid foundation for such engagement after halting the previous BFS in October 2022," Kirkwood said.

Despite today's big lift, shares in the ASX iron ore stock remain down 20% over 12 months.

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

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a sobering end to the week's trading this Friday.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Share Gainers

How a $9k investment in this ASX All Ords stock ballooned to $35,234 in just 3 years!

Shares in the ASX All Ords stock have rocketed even as it’s paid out market-beating dividends.

Read more »

Two colleagues at work looking at a tablet and smiling at a rising share price.
Share Gainers

Why AIC Mines, Bendigo and Adelaide Bank, Patriot Battery Metals, and Vulcan Energy are racing higher today

These shares are ending the week in a positive fashion.

Read more »

Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.
Share Gainers

Guess which ASX lithium share just leapt 13% on major financing news!

Investors are bidding up the ASX lithium share on the back of major financing news.

Read more »

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 was on fire today, with almost every sector surging.

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Share Gainers

Why Aristocrat Leisure, Graincorp, Incitec Pivot, and Patriot Battery Metals shares are rising today

These shares are having stronger-than-average sessions on Thursday. But why? 

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Share Gainers

Guess which ASX healthcare stock just exploded 63% on Federal budget funding news!

Investors are bidding up the ASX healthcare stock amid extra funding in the Federal budget.

Read more »

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

Here are the top 10 ASX 200 shares today

It was back to the races for ASX shares this Wednesday.

Read more »