Atlas beefs up margins as it reaches export targets
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.
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