Price and Chart HIO, page-4301

Sp has not fully recovered from recent sell down from 70c-72c due to global recession fear, China lockdowns, inflation and interest rate tightening and iron ore prices falling.

Today it recovered to 59c, still down around 15% from recent 70c-72c. So, what are all the fuzzies about?

During the last few weeks there have been 3 important news:

1. Management decided to go ahead with the 20mtpa option BFS and completely drop the 10mtpa option due to the compelling economics and the great attractiveness of the 20mtpa to financiers. A big tick of confidence!

2. MOU signed with Flinders Ports Pty Ltd to finance-build-operate the Myponie Point port for HIO. A big major milestone ticked off.

3. Management took a decisive and stragetic move to lock in option to purchase 3 parcels of land surrounding the Myponie port. On this note alone I take my hat off to Bryan team for such a smart move. Another major milestone in preparation to bring the project to construction and production.

Add in 2 major and highly anticipated imminent updates:

4. Resource upgrade, and

5. The pilot plant/sampling/metallurgical result update.

Those 5 events/developments clearly have great potential to take sp far beyond $1 and never look back. After all we all know HIO is ridiculously undervalued and it should already be at 20% MC/NPV at current stage. In other words, sp should already be more than $3 today.

59c? Ridiculously under-valued. IIR research report will likely update short term sp target at $3.05 (based on 20mtpa, 400mil tons resource, selling price of Fe70% = USD $171/ton) and long term sp target of $10.15.

KPS report estimated NPV8% of $9.3bil based on only 10mtpa and 200mil tons resource at selling price of Fe70% = USD $130/ton. Equivalent to roughly NPV8% of around $29bil, based on 20mtpa, 400mil tons resource and selling price Fe70% of USD $170/ton. If based on KPS report, short term and long term sp targets would be around double what they are from the IIR report. I will update all these figures once the resource upgrade is released. They are mind-boggling.

Numbers don't lie.