Price and Chart HIO, page-1617

Here is my story.

I saw HIO (CAP) sp increased significantly sometimes last year. I think it was from 3.4c to 5.8c or somewhere around but I didn't read into it.

Then the following day it increased again and I still didn't bother to look into it.

Then the next day or 2 days later it jumped again and that was when I decided to look at it and found out that it was to issue shares to Pure Metals to take back the 30s% of Hawsons project to increase its ownership of the project to 94%.

Then I quickly did some calculations on its projected NPV and found it was unbelievable amazing number. Remember the spot Iron price at that time was around USD $200/ton. I found it was ridiculously undervalued. In fact, "Ridiculously under-valued" was actually an understatement. So, I decided to off-load 1/2 of my GLN holdings and put all the proceeds into HIO.

I bought GLN from 22c and sold 1/2 my holdings at average of around 75c. At that time I had absolute confidence that GLN has much further gains to be made and I mean big gains to be made. But the HIO (CAP) sp had even far more multiple gains than GLN according to calculation. GLN has since increased from 75c to $2.20 last week. I did my research and calculations on GLN and LKE at that time and found that if GLN decided to go with DLE technology for its extraction method instead of evaporation pond method, it's HMW project must be worth more than twice LKE's main project. If GLN is to drop an announcent to switch to DLE extract method I strongly believe it's sp will easily breach $6 sp within weeks. Let's see if it eventuate.

Back to HIO.

So, I bought heavily into HIO starting from 9.8c and continued to top up at around 14c-14.5c. It went to 18c few days later. Regal Fund sold down its shares which it was lucky to buy from the administrator of Pure Metals at 4.3c and reaped 300%-400% gains within days. Lucky bastard!. And sp crashed down to 10c.

But I kept digging into more and more past info and PFS figures and did my maths and still believed the market was so wrong. The stock was so under-valued. And along the research for my maths I came to understand more about background fundamentals of Hawsons project and its surrounding infrastructures (roads, rails, ports, water, power, community,...). Hawsons project were blessed with so many favourable ready access infrastructures and the quality of its products. My belief in Hawsons didn't diminished by the savage sp but actually became stronger.

Then sp started to increase again towards 21.5c before the announcent of the CR of $35.6mil to pay for and to accelerate the BFS which, to me, was a fantastic and monumental event for HIO (CAP). Unfortunately, the iron ore price crashed spectacularly from $200 to $90 within weeks and so HIO's sp. It fell from that high of 21.5c to 7.5c. Very stressful time for every single holder.

But my maths clearly shows the unbelievable potential if iron ore price recovers to above USD $120/ton. And so it did. Currently at USD $150/ton range.

4-5 months ago I did post my maths on this platform and showed my target sp of $3.93-$5.40 based 300mil-400mil tons resource utilization on expected MC/NPV ratio of 20%-30% which many mining projects usually easily reach before construction begins. In fact many mining projects even reach 20%-25% MC/NPV even before they started their BFS/DFS and 40% MC/NPV before construction.

Since then, we have been updated with 20mil tons annual production target and the direct slurry pipeline. That is doubling annual target production and I bet it must based on at least doubling of resource utilization from 201mil tons in the previous PFS to the upcoming BFS. And that confirms my assumption of 350mil resource utilization is very achievable.

Will the resource upgrade in the next few weeks blow us away with more than 450mil-500mil tons? I think it has real possibility. But 300mil will be absolutely beautiful number already. Forget about 500mil tons.