ATLAS is an iron ore exploration and production company r based in the Pilbara of Western Australia. Pardoo is presently a direct shipping ore project with Wodgina project commencing in quarter 1, 2010, Abydos project commencing quarter 4, 2010 and Mt Webber project. All are within close proximity of Port Hedland. Atlas and Warwick Resources are planning to merge by way of scheme of arrangement. Warwick have their tenements in the East Pilbara. Atlas iron ore production rate expected to be 6 million tonnes per annum by end of 2010, increasing to 12 million tonnes per annum by end 2012 with the combined company's production target of 26 million tonnes per annum by 2014. Wilson HTM are forecasting profits to rise from $58 million in 2010 to $502 million in 2012 and dividend to rise from zero in 2010 to 26.3 cents per share in 2012. At the current price of $1.915 the 2012 dividend equates to a yield of 13.7 per cent per annum fully franked which is equivalent to a pre tax yield of 19.6 per cent per annum. Our 12 month share price target is significantly above the current share price.
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Geez I for one would be happy if we were to get dividends like that going forward every year.
AGO Price at posting:
$1.81 Sentiment: LT Buy Disclosure: Held
