Atlas confirms running at a loss
by The West Australian January 20, 2015, 7:51 am
Shares in Atlas Iron fell after the miner revealed it was selling its product at a loss during the December quarter.
The mid-tier Pilbara miner said it had lifted production by 23 per cent over the quarter to 3.8 million tonnes.
However despite cutting all-in cash costs 4 per cent to $66 a tonne, its average sale price fell 12 per cent to $63 a tonne.
But the company said it maintained a cash balance of $169 million and was continuing to reduce costs.
Atlas managing director Ken Brinsden said the company's continuing hard work, innovation and the ongoing co-operation of its suppliers and contractors, combined with the lower Australian dollar, lower oil prices and falling ocean freight rates would help to boost cash flow in the current half.
"At the same time, operations are exceeding our production guidance and we are strongly leveraged to any uptick in the Australian dollar price of iron ore," he said.
Atlas shares were down one cent, or 5.26 per cent, to 18 cents at 7.50am
