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4.5¢ atlas iron limited

Sadly Atlas is priced to fail, either they shut down higher cost...

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10/03/15

14:05

Post #: 14888986
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Originally posted by rumbai12 ↑

I was wondering if someone can verify if my figures are correct- if I am wrong I apologise in advance.

The current 62% Platts Iron Ore price CFR China is $58.58 USD. AGO sell a 57% product which sells for around 25% discount after all discounts are included, so they would be receiving approx. USD $44/MT. This is AUD $56.40 @ $0.78 exchange rate.

I understand that all in cash costs for previous half year were AUD $67/MT. I understand that it is now $63/MT with talk that it will be reduced to $59/MT.

So at todays prices, they are losing $6 - $7/MT, it could be as low as $3/MT or as much as $11/MT.

On production of 1 M MT per month, that is a loss of $6M per month or $72M per year.

I understand that the debt is around $320M AUD currently.

Will Atlas have to sell or close downs some mines?

Do they do a capital raise @ $0.15 or less to stay alive. This would dilute existing shareholders.

Appreciate any feedback others may have.

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Sadly Atlas is priced to fail, either they shut down higher cost mines or they do CR to cover the debt covenants that are bound to pop soon.

Post Chinese New Year shut down, one would want to see some commodity stock building, but thus far nothing of note, very quiet start.

AGO Price at posting: 15.0¢ Sentiment: None Disclosure: Not Held
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