Recently, Baosteel Group and Rio Tinto Group have reached an agreement on basic prices for powder ore, Yangdi powder ore, and PB lump ore. With the iron ore price hike, iron ore enterprises are facing a great opportunity for development.

Guangdong Dading Mining Co., Ltd., in which the company holds a stake, owns the largest iron mine in South China, namely Dading Iron Mine, a rare domestic open pit mine with large deposits of good quality ore. With the soaring iron ore price in 2007, the company's sales revenue has increased greatly, a main source for its profit growth.

Following a continuous price decline, the company's stock has seen a mild turnover volume increase with a clear capital inflow. Investors are advised to pay close attention to this stock.

Source: Shanghai Securities News

Date: 25 Jun 2008

CN01/NW/MZ/AR/KM