Photo by: Bloomberg
PERTH (miningweekly.com) – Iron-ore miner Atlas Iron is targeting production of 13-million tonnes during the 2015 financial year, MD Ken Brinsden said on Thursday, also revealing that the company would undertake a cost-cutting initiative to save between A$50-million and A$80-million a year.
Brinsden said on a conference call on Thursday that the cost saving would be achieved through a range of initiatives, including productivity improvements at its operations.
During the quarter ended June, Atlas shipped a record 3.1-million tonnes of ore, at an average cash cost of A$75/t, bringing its full-year shipments to a record 10.9-million tonnes. Some 9.6-million tonnes of the product shipped during the full year was Atlas’ standard fines product, while the balance consisted of the value fines product.
Some 3.5-million tonnes of ore was mined during the quarter under review, up 56% on the previous quarter, while the tonnes processed increased by 33%, to 3.1-million tonnes.
“These results highlight Atlas’ ability to not only endure what has unquestionably been a difficult market in recent months, but also to grow despite this environment,” Brinsden said.
During the quarter under review, the company’s Mt Webber mine came into production, adding another six-million tonnes a year to the company’s production portfolio. Brinsden noted that ramp-up of Stage 2 of the project was on track, which would further increase the overall north Pilbara production by the end of the calendar year.
During the full-year ended June, Atlas invested about A$370-million in capital in its projects, and Brinsden noted that this would drop to A$125-million in 2015 as the company completed investment in its Horizon 1 assets.
“There will be a material drop in the level of investment in the business [in 2015], and that sets up a great platform for Atlas at our higher production rate, which will be close to 13-million tonnes in 2015.”
Meanwhile, Brinsden pointed out that with the company’s focus on cost savings, all-in cash costs were also expected to fall during the 2015 financial year from those achieved in the year ended June.
Unaudited cash costs for the 2014 financial year were pegged at A$51/t, and were expected to decline to between A$47/t and A$50/t in 2015.