Updated Coverage of Hawsons Iron Limited (ASX: HIO)

April 21, 2022

We have updated our coverage of Hawsons Iron to accommodate some errors in Table 7 of our original note, which related to capital and operating costs for Hawsons Iron and its peers, including Magnetite Mines (ASX: MGT). This updated version of our note replaces our prior note, which has been fully retracted.

With steelmaking responsible for an estimated 6.7% of global CO2 emissions, steelmakers and investors are looking at ways to reduce these emissions, in the drive for “green steel” and to meet increasing Environmental, Social and Governance (ESG) obligations.

Hawsons Iron Limited is in an ideal position to take advantage of the changing market dynamics, with its 100%-owned Hawsons Iron Project located near Broken Hill in Western New South Wales. Following project consolidation (after a less than ideal JV situation) the market has re-rated Hawsons Iron, with the consolidation removing a road block to effective progress. After raising A$35.6 million in a late 2021 underwritten placement and rights issue, it is now full steam ahead on a Bankable Feasibility Study (BFS), which is looking at options for a 10 Mtpa to 20 Mtpa concentrate operation.

A potential 20 year/20 Mtpa option is supported by the large resource, with 400 Mt of high
grade DTR concentrate identified in 3.06 Bt of mineralisation. In addition there is an exploration
target with the potential to add an additional 150 Mt to 250 Mt of high grade concentrate to the
inventory as well as a significant strike length of untested prospective stratigraphy.