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HAWSONS IRON LTD
Symbol	HWSNF
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Hawsons Iron Ltd (HWSNF) Strong PFS Update Delivers 37% Increase in Project NPV to AU $1.87B

2026-05-25 21:13 ET - News Release

Brisbane, Australia, May 26, 2026 - (ABN Newswire) - Hawsons Iron Ltd (ASX:HIO) (OTCMKTS:HWSNF) (FRA:78A0) announced the results of one of the two optimisation studies the Company undertook following release of the Pre-Feasibility Study in December 2025 (December 2025 PFS). The process waste handling optimisation study was undertaken by TAKRAF Group (TAKRAF). The outcomes of the TAKRAF study have been incorporated into an updated Pre Feasibility Study (PFS Update May 2026), details of which are set out in this announcement.

Highlights

Process Waste Handling Optimisation Study

- The independently prepared study prepared by TAKRAF, confirmed the positive value outcome of substituting haulage trucks with a conveying & stacking system;

- The study demonstrated material savings for the Project's operating costs relating to process waste handling, including labour, accommodation and fuel;

- The study shows lower reliance on diesel through increased electrification of operations, lowering the Project's carbon footprint.
Updated PFS Completed

- The results of the TAKRAF Study have been incorporated into the December 2025 PFS to create the PFS Update May 2026.

- The independently prepared PFS Update May 2026 remains based on producing up to 12Mtpa of +68% Fe magnetite concentrate with a Life of Mine of 26 years, based only on the Project's 2,300Mt Probable Ore Reserve;

- The outcomes of the TAKRAF Study, as reflected in the PFS Update May 2026, demonstrate material improvements in both technical and financial outcomes and further support the development potential of the Project in the current iron price environment.

Project Physicals (Unchanged from December 2005 PFS)

- Production target of 257 million tonnes (Mt) of magnetite concentrate over 26 year mine life;

- Average magnetite concentrate grade of 68.6%;

- Production target limited to Probable Ore Reserves only.

Project Economics

- Pre-tax NPV8 of $AU 1.87B at a product price of $US140/t and an AU/US exchange rate of $0.65/$1.00, an increase of 37% over the December 2025 PFS. Product price and exchange rate assumptions remain unchanged from the December 2025 PFS.

- Pre-tax IRR of 11.9% compared with 10.9%;

- Approximate payback period of 13 years from commencement of Engineering, Procurement, and Construction Management (EPCM) and 10 years from first concentrate production;

- Undiscounted Life of Mine revenue of $AU 55.2B and cumulative pre-tax cashflows of $AU 14.9B;

- Total initial capital of $AU 4.94B for mine development, processing, and infrastructure over 2 construction stages:

-- $AU 3.88B Phase 1 production; and
-- $AU 1.06B deferred for 4 years post-production (Phase 2).

- C1 cost of $US 44.20 and CFR cost of $US 85.12 per dry metric tonne (dmt).

- Total Project funding requirement of $AU 4.34B

Process Waste Handling Optimisation Study

In March 2026, Hawsons Iron Limited engaged German headquartered TAKRAF Group (TAKRAF) to undertake an option study assessing the replacement of the planned trucking of the Project's 90Mtpa process waste stream with an integrated conveying and stacking system.

Based on agreed design criteria for the process waste stream, including annual throughput capacity, bulk density, moisture content, particle size distribution, belt speed, lift height, pile height, angle of repose and conveyor inclinations, TAKRAF's scope of work included:

- Development of a waste stacking concept, including dump evolution schematics and bench operating methodology;

- Assessment of expected system availability and utilisation rates;

- Selection and sizing of suitable major equipment, including indicative power demand requirements; and

- Preparation of indicative capital and operating cost estimate inputs for the proposed conveying and stacking system

The key outcomes of the study were:

- Significant operating cost savings of $AU 7.42 per dmt concentrate compared to the December 2025 PFS;

- Capital cost savings of approximately $AU 26M compared to the December 2025 PFS;

- Material reduction in ongoing maintenance requirements compared with truck haulage (trucks, roads etc);

- Reduced workforce and associated accommodation requirements;

- Lower reliance on imported diesel through increased electrification of operations, resulting in reduced energy costs and a lower carbon footprint; and

- A simplified and potentially safer waste management system with high operational availability.

Updated Pre-Feasibility Study

On the back of the results Process Waste Handling Optimisation Study, the Company commissioned an update to the December 2025 PFS.

The PFS Update May 2026 reflects the TAKRAF study outcomes. Accordingly, no changes were made to 26 year mine plan used in the December 2025 PFS, which was based only on the Project's 2,300Mt Ore Reserve.

The PFS Update May 2026 improves the economic viability of the Project with material increases in both the pre-tax NPV ($AU 1.87B vs $AU1.36B) and the pre-tax IRR (11.9% vs 10.9%).

Hawsons Managing Director, Tom Revy, commented:

"The results of the updated Pre-Feasibility Study represent a significant advancement for the Hawsons Iron Project and further reinforce the strength of the Project in the current iron ore market environment. The optimisation work completed by TAKRAF has delivered material improvements across both operating and capital costs, while also enhancing the Project's sustainability profile through reduced diesel consumption and increased electrification.

These outcomes have translated into meaningful improvements in the Project's financial metrics, including increases in both the Project NPV and IRR, and further demonstrate the potential of Hawsons to become a globally significant producer of high-grade magnetite concentrate. Importantly, the updated study continues to be based solely on the Project's existing Ore Reserve, highlighting the scale and long-term development opportunity that remains within the broader Hawsons Mineral Resource."

To view tables and figures, please visit:
https://wcsecure.weblink.com.au/pdf/HIO/03093588.pdf

Hawsons Iron Ltd announcements;
https://hawsons.com.au/announcements/

About Hawsons Iron Ltd:

Hawsons Iron Ltd (ASX:HIO) currently has a majority interest in the Hawsons Iron Project, in addition to other magnetite interests in the emerging Braemar Iron Province.

Contact:

 
Tom Revy 
Managing Director 
tom.revy@hawsons.com.au  
+61 411 475 376