Why did the Hawsons Iron share price shoot 24% higher today?

The Hawsons Iron Ltd (ASX: HIO) share price had a day to remember on Wednesday, closing up almost 24%.

Shares of the iron ore producer finished the day at 42 cents each after opening the day at 32.5 cents a share.

The Hawsons Iron share price outstripped its sector peers by a wide margin with the S&P/ASX 200 Materials Index (ASX: XMJ) recording a 1.4% loss today.

Hawsons outperformed BHP Group Limited (ASX: BHP), which finished down 2.75% at $40.60 a share, and Fortescue Metals Group (ASX: FMG). Fortescue closed 2.06% lower at $18.42 per share.

Meanwhile, the spot price for iron ore is also down considerably today, trading 4.71% lower at $US104.92 per dry metric tonne, according to MarketsInsider.

There was also no news posted by the company today to justify the steep climb in its shares. So what’s going on? Let’s investigate by recapping some recent coverage about the company.

What’s going on with Hawsons Iron lately

Most recently, on 17 August, the Hawsons Iron share price slumped 7% amid lower iron ore prices and the company rejecting court claims against it from Pure Metals.

Hawsons acquired Pure Metals’ 24.15% interest in the Hawsons Iron project, completing its acquisition in May 2021.

On 5 August, there was more bullish news about the company. It was announced US investment firm LDA Holdings would finance Hawsons Iron to the tune of $200 million. The company’s shares lifted from 30 cents to 31 cents per share on the day.

In light of these events and the price action of the broader market today, it seems the Hawsons Iron share price has decoupled from fears surrounding iron ore. These include pessimism surrounding the economic slowdown in China, the major customer for Australian iron ore.

It seems the emerging iron ore producer was writing its own script today.

Hawsons Iron share price snapshot

The Hawsons Iron share price is up 180% year to date. At the same time, the S&P/ASX 200 Index (ASX: XJO) is down 8% over the same period.

The company’s current market capitalisation is approximately $311 million.

The post Why did the Hawsons Iron share price shoot 24% higher today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Matthew Farley 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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