ATLAS Iron boss Ken Brinsden has dismissed takeover fears as the stock fell more than 10 per cent due to scepticism over the company's expansion plans.
Atlas has written down $458.1 million in asset values of its undeveloped Horizon I and Horizon II exploration project areas and tenements, contributing to a $245 million full year loss.
Still, underlying profit after tax was $13.7 million, down 81 per cent from $72.2 million.
The Pilbara iron ore miner is targeting exports of more than 10 million tonnes per annum in the upcoming financial year, but it is yet to announce a port and rail infrastructure solution which would allow it to develop its larger Horizon II mines.
Mr Brinsden said it had been a challenging year in terms of production and lower iron ore prices, with the company's share price halving since February.
"As to what people might consider of Atlas from the point of view of a takeover, in essence we always stand ready to defend the company,'' Mr Brinsden told a briefing after the release of the company's results on Thursday.
"There's a lot more value to be added.''
Atlas was not feeling any pressure from investors to come up with a rail transport solution, Mr Brinsden said.
"We have a good understanding of the sorts of commercial terms that can secure an infrastructure solution,'' he said.
"We are making material progress.''
Revenue grew 13 per cent to $695 million, up from $618 million in the prior year.
The company declared an unfranked dividend of three cents, unchanged from the prior year.peIG market analyst Evan Lucas said the net loss and underlying net profit results were well short of consensus expectations and the company's ambitious production targets could only be met with major infrastructure upgrades.
"If Atlas is to catch up in the next 18 months it will have to prove that it is ready to handle the raw amounts it is forecasting,'' he said.
Atlas shares closed 9.5 cents, or 10.2 per cent, lower at 83.5 cents.
AGO Price at posting:
83.5¢ Sentiment: Hold Disclosure: Held
