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Atlas beefs up margins as it reaches export targets

Atlas beefs up margins as it reaches export targets

Photo by Bloombeg

10th September 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Not only has iron-ore miner Atlas achieved its targeted export rate of 14-million to 15-million tonnes a year some four months ahead of schedule, margins during August were stronger on the back of increased realised prices.

The ASX-listed miner noted that tonnes shipped during August were up 33% on the July figures, reaching 1.18-million tonnes, while average realised prices were higher at A$61/t, compared with the A$57/t reported in July.

Full cash costs for August also declined to A$56.52/t, down from the A$66/t reported in the June quarter.

“Atlas is in an increasingly strong position with positive cash flow, improved costs and rising production,” said MD David Flanagan on Thursday.

“We completed a complicated production ramp-up ahead of schedule, while reducing costs. The team is doing an outstanding job.”

Atlas had been on a cost-cutting mission since April, when it was forced to cease operations at its three Pilbara mines. Production was subsequently resumed after signing a collaboration agreement with its key contractors.

Atlas also instituted a board reshuffle as part of its cost-cutting measures.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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