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Atlas Iron Limited (ASX:AGO), Iron Ore Holdings Ltd. (ASX:IOH), Sundance Resources Limited (ASX:SDL)

Early this month we upgraded our Iron Ore outlook based on increasing demand from Asia.

Today the Australian Bureau of Resources & Energy Economics in its September quarter report had forecast that iron ore prices would average $101/mt FOB in calendar year 2013. At that time, prices were extremely weak but they have since recovered. BREE predicted that iron ore prices would weaken further over the first half of 2013 from average December quarter levels of $108/mt FOB on slower Chinese steel consumption growth, before recovering towards the end of the year in line with our 2013 estimates.

BREE said that iron ore prices in 2012 would average $128/mt FOB, indicating next year’s expected $106/mt FOB will be a 17.3% drop year on year.

Most iron ore miners in Australia said they expected prices to stay close to $120/mt CFR in 2013, as at this level Chinese iron ore producers are able to stay profitable. Freight rates between Western Australia and northern China are around $7.30/mt currently.

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China and ASEAN to Lift Iron Ore Prices

3 ASX miners look like good value on the news Atlas Iron Limited (ASX:AGO), Iron Ore Holdings Ltd. (ASX:IOH), Sundance Resources Limited (ASX:SDL)

Atlas Iron Limited (ASX:AGO)

Atlas Iron Limited (Atlas) is engaged in the exploration, development and mining of iron ore. The Company’s principal activity is the operation of the Pardoo and Wodgina iron ore mines and the development of the mines at Abydos, Mt Dove and Mt Webber in the Pilbara region in Western Australia. The Company is also focused on the development and feasibility of its Horizon 2 projects, which include McPhee Creek. On October 5, 2011, the Company completed the acquisition of FerrAus Limited. During the fiscal year ended June 30, 2012, the Company sold its Balla Balla magnetite project to Forge Resources Limited. As of March 12, 2012, National Australia Bank Limited and its associated entities ceased to be substantial holders in Atlas. On March 26, 2012, the Company acquired the iron ore rights on the Daltons Iron Ore Joint Venture at the Mt Webber DSO projects. As of August 29, 2012, it had 53.45% interest in Shaw River Manganese Ltd.

Iron Ore Holdings Ltd. (ASX:IOH)

Iron Ore Holdings Ltd is engaged in the exploration of mineral tenements in Western Australia. The Central Pilbara Hub contains 305.9 metric tons of JORC mineral resources which comprise of high grade bedded iron deposits (BID) and channel iron deposits (CID). The Western Pilbara Hub contains a JORC mineral resource of 276 metric tons comprising of high grade CID. The Coastal Pilbara Hub contains a JORC mineral resource of 1,106 metric tons at the Maitland River tenement. During the fiscal year ended June 30, 2012, it sold Koodaideri South tenements to Hamersley Iron Pty Ltd, a wholly owned subsidiary of the Rio Tinto group, and three Central Pilbara satellite tenement packages to a wholly owned subsidiary of Mineral Resources Ltd. During fiscal 2012, it acquired the Mardie tenement from Azimuth Resources Ltd. In September 2011, Iron Ore Holdings Ltd. sold Pilbara asset to Rio Tinto plc.

Sundance Resources Limited (ASX:SDL)

Sundance Resources Limited is engaged in the iron ore exploration and project development activities in the Republic of Cameroon and the Republic of Congo. The Company is engaged in developing an integrated mine, port and rail Project at Mbalam. As of June 30, 2012, the Company held a 90% interest in Cam Iron S.A. which holds a 100% interest in the Mbalam Iron Ore Project in The Republic of Cameroon; and an 85% interest in Congo Iron S.A. which holds a 100% interest in the Mbalam Iron Ore Project in The Republic of Congo. Mbalam Iron Ore Project covers a total area of 1,740 square kilometers. The Mbalam Project is located at the heart of iron ore province in central West Africa. The Company’s subsidiaries include Cam Iron S.A., Sundance Minerals Pty Ltd, Sundance Exploration Pty Ltd, Sundance Mining Pty Ltd and Congo Iron SA.

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