"Hawsons" a green steel devolper in making

Thought i would start a subject which is more appropriate at this stage.

At the moment Hawsons is in free fall and no one seems to know what the bottom is.

With china curbing the steel production they are still operating at 70% steel production cappacity except for those that meet the most stringent emissions standards. industry experts said that raw steel output is expected to be slashed by some 60 million tons in the second half of 2021, which would weigh on the demand for imported iron ore and iron ore prices. In the first five months, China's crude steel output reached 473 million tons, up 13.9 percent year-on-year. That growth was in contrast with the stated Chinese government goal of not seeing an annual rise in crude steel production for 2021.

So the falling iron ore price can directly be linked with china tryng to control steel production,

Good thing is Hawsons has a line of offtake partner and they are not from china they are from countries like Formosa Plastics in Taiwan, Shagang Steel (China), Mitsubishi Corporation RtM (Japan), Bahrain Steel, Emirates Steel and Kuwait Steel (all from the Middle East) and trading house Gunvor Group. Not to forget that bryan have had worked with tata steel too.

while there is no doubt that this project would be flyng soon but another good things is their PFS has a price from 2017 which is $85 a tonne which is still 46% lower than current price of $160 a tonne. so even if it keep falling for another month Hawsons is still in good figures.

Only obstacle hawsons has on their way is to secure CAPEX of $1.4 billion which i think should not be a problem as if 8 offtake worth $200 million (Mitsui offered $200 million ) are announced they would cover it up.

Lastly we are sitting at highest grade iron in the world and demand for that would be increasing because of green steel demand.

Cheers!!!