Whilst there was nothing really new in the annual report (which...

Whilst there was nothing really new in the annual report (which is generally expected), it was good to get confirmation that Stage 2 of the Strategic Investor Process is continuing - so that appears to be on track for a targeted outcome later this year (meaning within the next four months).

If the Strategic Investor Process is completed successfully with one or two strategic investors, it will have a significant impact on the share price. If not completed successfully, the impact will depend on what plan B the company has as a contingency. Given the need for high grade magnetite for steal decarbonisation and that demand is forecast to exceed supply, I am expecting Hawsons to be successful in their strategic review process (otherwise I would not be holding). Whilst there certainly is risk, there is certainly significant reward if a successful outcome is achieved and should be known in the coming months.

As an example of steel manufacturers acknowledging the need for magnetite, the following is from an announcement from Liberty Steel / GFG Alliance on 15 May 2024 "Magnetite Validation With increasing demand for low-carbon technologies like DRI, the need for high-quality magnetite iron ore is headed to unprecedented levels...." https://www.gfgalliance.com/blog/liberty-successfully-completes-magnetite-testing-for-hydrogen-dri-eaf-production-in-whyalla/

I acknowledge that Liberty Steel have their own magnetite resource, but many steel manufacturers do not and it would be prudent to secure a supply of magnetite if they are considering green steel production with DRI/EAF technology - being the only current commercially proven method of making green steel at scale.


From page 6 of the annual report.