Why did the Hawsons Iron share price plunge more than 23% today?

Young man in shirt and tie staring at his laptop screen watching the Paladin Energy share price tank todayYoung man in shirt and tie staring at his laptop screen watching the Paladin Energy share price tank today

The Hawsons Iron Ltd (ASX: HIO) share price had a horror day on the market today.

The explorer’s shares opened at 65 cents and fell a whopping 23.08% through the day to close at 50 cents. For perspective, the S&P/ASX 200 Index descended 1.18%.

Let’s take a look at what might have impacted the Hawsons Iron share price today.

Iron ore prices plunge

The Hawsons Iron share price has been volatile in recent days. In today’s trade, it dropped massively despite no price-sensitive news from the company.

It’s likely that sinking iron ore prices could be impacting the company’s share price. Singapore iron ore futures dropped 6.7% in global markets to US$128.75. Iron ore on China’s Dalian Commodity Exchange also gravitated more than 5% on Friday after traders reacted to China’s COVID-19 zero policy.

Shares of iron ore producers Fortescue Metals (ASX: FMG) and BHP Group Ltd (ASX: BHP) also dropped 5.76% and 1.26% respectively today. Meanwhile, the S&P/ASX 200 Resources Index (ASX: XJR) fell 1.89%.

Hawsons is exploring the Hawsons Iron Project near Broken Hill in New South Wales. This project received a three-year major project status renewal in March.

The company’s share price soared nearly 59% between market close on 27 April and 2 May. Investors appeared to react positively to the quarterly report released on 29 April. The company reported a cash balance of $18.377 million. However, since the market close on 2 May, the company’s share price has slipped 43%.

Hawsons Iron share price snapshot

The Hawsons Iron share price has exploded more than 1000% in a year and is up 233% this year-to-date.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned less than 1% in the past year.

Hawsons has a market capitalisation of about $357.5 million based on today’s share price.

The post Why did the Hawsons Iron share price plunge more than 23% today? appeared first on The Motley Fool Australia.

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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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