AGO 0.00% 4.5¢ atlas iron limited

new hartleys report spec buy iron ore

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    http://www.atlasiron.com.au/reports/rr070627.pdf

    Atlas Iron Limited (“Atlas”, “AGO”, “Company”) has a number of key
    announcements due in July that could act as catalysts for a re-rating in
    the Company’s share price.

    We expect positive results from the hematite and magnetite studies to
    provide catalysts for further share price appreciation. The environmental
    ruling is likely to strengthen that push or provide a short term correction,
    which will represent a further buying opportunity. With the move to
    production in early CY2008, we rate Atlas Iron Limited as a
    Speculative Buy.

    The major competitive advantage that Atlas has with its magnetite project is the proximity to a large Cape-size
    port. The project is only 75km to port with road, rail and slurry pipeline transport all viable options.

    MoU signed with FMG envisages for Atlas to ship 10Mtpa of magnetite concentrate through FMG’s new port at
    Port Hedland, further reducing the risk that the project will not be constructed.

    There are three large catalysts coming up in July that should have a positive impact on the Atlas share price,
    despite the recent strong run up from 60cps. The release of the Hematite Feasibility Study, the Magnetite
    Scoping Study and a ruling on the environmental determination process all have the potential to give Atlas a rerating
    in the market. On the chance that the Government determines that Pardoo should be the subject of a
    Public Environmental Review (“PER”), there may be a short term correction in the Atlas share price that will
    represent a buying opportunity. We continue to rate Atlas Iron Limited as a Speculative Buy.
 
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