Atlas Iron is confident of operating through another iron ore price rout after locking in forward sales above its break-even costs.
Chief executive David Flanagan says the company will still be comfortable if the iron ore price falls back to 10 year lows of $US46 a tonne.
"Today we're selling ore and we're making money so all of the cargoes right through to June, July, August that we've sold - we're making cash on all of them," Mr Flanagan told reporters on the sidelines of a mining conference in Perth on Wednesday.
Mr Flanagan said the struggling junior iron ore miner had locked in some cargoes of iron ore to China as far forward as December at $US57 per tonne, comfortably above the company's break-even price of $US50 per tonne.
"If the iron ore price goes to $US46 a tonne and it stays there for two months it won't affect the cash flow in our business because we will have pre-sold iron ore for at least the next three months."
Mr Flanagan predicts the iron ore price, which is trading around $US60 a tonne, will move between $US50 to $US70 per tonne over the next two years, despite analysts' predictions that it could drop as low as $US38 per tonne in the months ahead.
Atlas suspended mining operations and trading in its shares in April when iron ore prices dropped below $US50 a tonne as the company faced a $25 million loss for that month.
The company has $340 million of debt with US bond holders which is due in December 2017, with interest costs of between $2.5 million to $2.8 million per month.
Shareholders will vote on a $180 million capital raising at Atlas' annual general meeting in Perth on Thursday before Mr Flanagan embarks on an international roadshow to Hong Kong, Singapore, London, Edinburgh, Australia and New Zealand during July.
The company plans to restructure its debt after the capital raising and has recently been in talks with its four lenders.
Mr Flanagan said if the $180 million capital raising was successful, the business could potential raise another $270 million if options are taken up by some of the company's 34,000 shareholders.
There were also several other "indicative proposals" which had been put to the board, he said
Mr Flanagan also flagged further job cuts at head office and pay cuts over the next six months after shedding more than 250 jobs.
He has also ruled out recapitalising the company's structure and conceded Atlas stock had been "a day traders dream".
"They've shorted us, they've twisted us, I've felt like a bloody corkscrew sometimes."
Still, Mr Flanagan is confident that over the next two years the company will enjoy the support of its three main contractors who have reduced their costs in order to take 25 per cent cash margin that Atlas produces.
Once the iron ore price rises above $US62, three main contractors will be able to charge Atlas more but they only need to give three months notice to terminate the agreement.
