(YOU MUST FIRST READ THE 1ST POST IN THIS THREAD TO UNDERSTAND WHAT THIS IS ABOUT)
So it is a challenge for HIO to go with 20mtpa plan right now.
But for BHP, RIO, POSCO, TATA STEEL,....money is not a problem. And they don't plan for 1 year or 2 years or 5 years. They do plan for the next 20 years, 30 years. And they clearly have discussed, stated, planned for the need to have access to magnetite iron ore to satisfy the massive increase in demand for DRI feedstock (high grade iron ore of >Fe68%). Hio's product is Fe69%-Fe70%.
The Exploration Target Resource is currently at average of around 2.3bil tons of concentrate with 21 historical drillholes OUTSIDE THE CURRENT RESOURCE AREA OF 481mil tons already hit iron ore at amazing length and grade. It is not hard and I absolutely believe the ultimate resource with further drilling is mind-boggling. BHP, RIO have ample resource to drill out the whole area to take it to 1.5bil - 2bil tons resource.
Follow up my previous post in this thread, at 1.2bil tons resource, the project valuation is roughly AUD $40bil.
And at 1.6bil tons resource the project valuation is roughly AUD $54bil.
There is now no question how stragetic Hawsons project is to BHP and RIO and other big iron ore producers as these big major players have clearly stated their need to get into high grade ore to position themselves for the decarbonization revolution in steel in decades ahead.
The questions are:
1. If a take-over launched by FMG or RIO or POSCO, how much they will offer?
2. Will another major launch a counter-offer?
HIO Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
