Ann: Atlas Half Yearly Report and Accounts , page-17

From the Australian:
ATLAS Iron has continued the trend of iron ore miners reporting a slump in first-half profit on the back of the hit to the iron ore price late last year, but the miner says its phone has been "running hot" with increased interest from Asian customers.

The Perth-based iron ore miner's shares fell yesterday after reporting a net loss of $256 million, compared with a $6.1m profit during the same period a year earlier. Shares in the company closed 3.44 per cent lower at $1.54.

Chief executive Ken Brinsden said while the bottom line had been affected by the high volatility of the price of the steelmaking commodity, it had rebounded strongly this year, boosting the junior's margins.

He said the company had already signed on a mix of new customers this year and he was confident in the outlook for the year.

"It has been a volatile half and overall pricing is weaker than the 2012 financial year, but for Atlas it is about the continued story about growth of the business," he said.

"It was a big half from the offtake point of view and particularly the strength in the market post the golden week (a major Chinese holiday event) celebrations. We've seen a material change in the market with buyers coming back in, in a strong way."

Mr Brinsden said the phones had "run hot" at Atlas, adding that it had been similar to the "heady days" of 2007 and early 2008.

"The customer base in China is very active and we are taking advantage of that," he said. "Overall, we are optimistic about the 2013 financial year. The strong demand has translated into the signing of new contracts."

Atlas has signed three new contracts in the reported half and post the half-year has signed another three contracts, two of which are new.

The contracts are generally with Chinese steel mills, but the miner said it had also established relationships with international traders.

The half-year result was also hit by a $258m impairment charge against its exploration assets, which the Pilbara miner had flagged last week.

Mr Brinsden, describing the $1m profit after tax as a "modest result", which translated into a net loss of $256m after including the non-cash impairment, said the company had continued to invest in expansion plans.

The company is finalising an infrastructure study with Aurizon, which Mr Brinsden said should be released in a month, if not earlier, to provide the first hint of how the miner could expand its operations beyond the trucking model.