ASX shares to take advantage of sky high iron ore prices

With iron ore prices surging above US$200 for the first time. Here are 3 ASX shares that might fly under the radar for iron ore exposure.

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Iron ore prices continue to defy expectations, surging to more than US$220 per tonne for the first time on record. While BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) dominate the popularity contest for iron ore exposure. Here are 3 ASX shares that might fly under the radar for iron ore. 

Mineral Resources Limited (ASX: MIN

The Mineral Resources share price has retreated 4% to $46.25 at the time of writing. Despite the sharp move down, its shares are still sitting within record territory with year-to-date returns of around 20%.  

Mineral Resources could represent the best of both worlds, eyeing a significant ramp up in iron ore production while diversifying into lithium. 

Over the next five years, the company plans to double the revenue of its mining services, which currently account for approximately one-third of the company's revenues, and ramp up its iron ore production from 20Mtpa to 90Mtpa. 

Mineral Resources has partnered with one of the world's largest lithium producers, Jiangxi Ganfeng Lithium Co Ltd to operate the Mt Marion Spodumene project. 

Mount Gibson Iron Limited (ASX: MGX

Mount Gibson operates the Koolan mine, located in the Buccaneer Archipelago, Western Australia. The former BHP mine boasts one of Australia's highest-grade hematite ore reserves which average 65.5% Fe.

The company is eyeing a FY21 guidance of 2.8 to 3.3 million wet metric tonnes (Mwmt). This comprises of 1.2 Mwmt of material sold from its now-completed low-grade sales program in its Mid-Western Australia projects and the remainder comprising of its Koolan Island fines products, which are expected to total approximately 1.8 Mwmt. 

BCI Minerals Ltd (ASX: BCI

BCI Minerals is another iron ore junior that has soared more than 25% in the last two weeks. The company's main iron ore asset is its Iron Valley Mine which is mined under royalty payments from Mineral Resources. 

The company is targeting an earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $37 million between Q1 to Q3 FY21 from its Iron Valley royalties. The company has used its cash proceeds from iron ore to help drive its Mardie salt and sulphate of potash fertilities project in Western Australia. 

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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