Atlas flags up to A$100m impairment on lower grades, higher costs
PERTH (miningweekly.com) – Iron-ore miner Atlas Iron has warned of a A$75-million to A$100-million noncash impairment charge for 2018, as iron-ore grades declined and costs increased.
Atlas on Thursday told shareholders that it remained on track to ship between nine-million and ten-million tonnes of iron-ore during the 2018 financial year, albeit at the lower-end of that range.
However, in light of elevated sea freight costs and fuel prices, Atlas has adjusted its C1 cash cost estimates for the full year from the previous estimate of between A$37/t and A$39/t, to between A$39/t and A$40/t, while full cash costs have been adjusted from the previous estimate of between A$54/t and A$58/t, to between A$58/t and A$59/t.
Atlas in the March quarter reported an operating loss, with the miner recording an average sale price of A$59/t and a full cash cost of A$62/t for the month of April, on volumes of 700 000 t.
The miner is suffering as the Chinese market shifts to buying more high-grade iron-ore, leaving the low-grade material that Atlas mines at a significant discount. In an attempt to mitigate the impact of the low grades and prices, Atlas has been trying to diversify its product offering and entered into an agreement with Pilbara Minerals to purchase lithium direct shipping ore, crush it at its plant and ship it to Sinosteel. It has also added manganese to its shipping mix.
In April, ASX-listed Mineral Resources made a takeover bid for Atlas.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation