While certainly not the outstanding margins of last quarter, to my eyes the report looks reasonably solid. Nothing overly unexpected apart from the increased discount of the Standard fines to 62% price.
Very interesting to hear about the possibility of a regional hub strategy due to the current exploration success at Corunna Downs as well as the expected resources between there and Mcphee creek. The fact that Atlas appears to be moving slowly and aren't quickly jumping at the first option might be frustrating to us impatient holders, but it gives assurance that they are playing the long game and attempting to maximize opportunities and returns over the longer term.
Just a note on figures, I could be wrong Er6n but I believe the targeted '$75 all in cost to china' already includes the freighting cost. If so, you would obviously need to use the Realised CFR Sale Price AUD / WMT of $104.97 rather than the Realised FOB Sale Price AUD / WMT of $92.07..... or alternatively deduct the freight cost from the all in cost when using the FOB figures.
In that case, the all in cost (not including shipping) plus D&A is at most $82/T leaving a net profit of about $10/WMT on the standard fines.
D&N and corporate expenses/T are also on the decrease which will help give a bit more breathing space in the event of sustained low FE price.
AGO Price at posting:
97.5¢ Sentiment: LT Buy Disclosure: Held
