- Hawsons Iron (HIO) presses the brakes on a planned bankable feasibility study (BFS) for its namesake project near Broken Hill in New South Wales
- The company has been assessing options to upscale the project’s production profile to 20 megatons per year, using a direct-to-port slurry pipeline
- However, Hawsons Iron says due to rising global costs and deteriorating economic conditions, it has made the call to slow the pace of work at the project
- Managing Director Bryan Granzien says HIO will analyse and review project costs and options, and as such, the BFS will not be completed by the end of this year as scheduled
- Hawsons Iron shares are down 59.5 per cent to 15 cents at 11:56 am AEDT
Hawsons Iron (HIO) has pressed the brakes on a planned bankable feasibility study (BFS) for its namesake project near Broken Hill in New South Wales.
After posting a 400-million-tonne (Mt) mineral resource estimate last year, the company has been assessing options to upscale the project’s production profile to 20 megatons per year, using a direct-to-port slurry pipeline.
However, citing rising global costs and deteriorating economic conditions, the Hawsons board has now decided to slow the pace of work on the BFS to examine escalating capital expenditure costs and all options to progress the project.
Managing Director Mr Bryan Granzien said the analysis and review process would take some time, and as such, the BFS would not be completed by the end of this year as scheduled.
Mr Granzien said there was “no other choice” given the current state of global capital markets and the world economy.
Hawsons Chairman Dave Woodall said despite strong market headwinds, the company “absolutely” believed in the value of the project as a source of high-grade magnetite concentrate and was “fully committed to examining all options available”.
“A project slow-down is the most sensible and prudent response to preserve capital, given global cost pressures, and will allow a focus on optimising pathways in the best interests of shareholders which are reflective of deteriorating world conditions.”
Mr Woodall said the capacity to raise additional capital during the next 12 months would be contingent on the passage of resolutions put to shareholders at the forthcoming AGM on November 15.
Hawsons Iron shares were down 59.5 per cent to 15 cents at 11:56 am AEDT.