Hawsons Faces Funding and Payback Challenges Despite PFS Success

A Major Milestone for Hawsons Iron

Hawsons Iron Limited has marked a significant step forward in its development journey with the completion of a Preliminary Feasibility Study (PFS) for its Hawsons Iron Project. This milestone follows over 15 months of detailed work by respected consultants and culminates in the declaration of a JORC-compliant Probable Ore Reserve of 2.3 billion tonnes at an average grade of 11.7% DTR and 16.7% total iron.

The PFS outlines a robust development strategy centred on producing up to 12 million tonnes per annum of premium magnetite concentrate grading over 68% iron, sustaining operations for 26 years based solely on the declared Ore Reserves. This long mine life and high-grade output position the project favourably within the iron ore sector, especially given current market conditions.

Economic Outlook and Project Viability

Financially, the PFS paints a promising picture with a pre-tax net present value (NPV) of AU$1.36 billion, calculated at an iron ore price of US$140 per tonne and an exchange rate of AU$0.65 to US$1. The internal rate of return (IRR) stands at 10.93%, with an estimated payback period of approximately 13.5 years from the start of construction activities.

The project’s capital expenditure is estimated at nearly AU$5 billion, split across two phases, with the initial phase accounting for AU$3.91 billion and a deferred AU$1.05 billion for expansion four years post-production commencement. Operating costs are competitive, with a C1 cash cost of US$49.34 per dry metric tonne and CFR costs at US$89.94 per tonne, underscoring the project's potential profitability.

Governance and Strategic Progress

Alongside technical progress, Hawsons has strengthened its leadership with the appointment of Meredith Campion as a Non-Executive Director, bringing extensive legal and commercial expertise, and the elevation of Tom Revy to Managing Director, recognising his pivotal role in advancing the project. The retirement of Tony McGrady from the board, while continuing in an advisory capacity, marks a transition phase for governance.

Community and stakeholder engagement remains active, with ongoing dialogues involving state governments, local councils, industry groups, and pastoralists, reflecting the company’s commitment to responsible development and social licence.

Funding and Next Steps

Financially, Hawsons reported cash reserves of AU$0.54 million at the end of December 2025, with operating and investing cash outflows reflecting ongoing project development activities. The company is in the final stages of a capital raising expected to be announced shortly, which is critical to advancing the project into the full Feasibility Study phase and subsequent development stages.

Looking ahead, the company plans to undertake further drilling to upgrade resource categories, optimise processing techniques, and progress environmental permitting aligned with development timelines. These efforts aim to enhance project metrics and reduce risks identified in the PFS.