RCR’s Iron Ore Company Review, March Quarter 2010 March 16, 2010

Resource Capital Research (RCR), an equity research company which focuses on small and mid size resource companies, today published its quarterly research report covering iron ore exploration and development companies. RCR also publishes quarterly reviews of the Uranium and Gold sectors.

To access the free summary of the iron ore report or to purchase the 63-page comprehensive report, go to www.rcresearch.com.au/reports.

Key Points

Iron Ore Market:

• The spot price of Chinese iron ore imports is currently double the 2009 contract price. This is predicted by industry stakeholders to trigger a rise of up to 90% for 2010/11 contract prices. RCR forecasts there will be a rise of 40% to USc140/dmtu for fines.
• The current system of year-long contracts is very likely to be replaced in 2010, wholly or in part, by short contracts and/or an index based pricing system.
• The global economy’s faster than expected, and ongoing, recovery from the GFC has created risk of overcapacity in the steel sector; however, the long term outlook for steel and iron ore is strong.

Iron Ore Equities:

• Australian listed iron ore stocks have gained an average 208% in 12 months, driven by the overall market recovery and rising iron ore prices, as well as progress towards infrastructure expansion and agreements (e.g. Ankatell Point and Pilbara rail access).
• Similarly, Canadian listed iron ore stocks have gained an average 149% in 12 months.

Click here to view a Media Release with more summarised findings.

For further information, please contact:

Trent Allen
Iron Ore Analyst
+61 (0) 438 873 682
Email: trentallen@rcresearch.com.au

John Wilson
Managing Director
Phone: (+61- 2) 9252 9405,
Email: johnwilson@rcresearch.com.au