Atlas initiates business review as iron-ore price slumps
PERTH (miningweekly.com) – The shares of ASX-listed Atlas Iron on Tuesday went into a voluntary trading halt as the miner announced a company-wide review after the iron-ore price fell to $47.50/t.
The Australian miner reported that the iron-ore price had fallen by 24% since it released its half-year accounts on February 24.
Atlas told shareholders that the review would include the company’s operations, financial outlook, asset sale opportunities and capital structure. The company added that a number of discussions would be held with stakeholders relating to various initiatives to further reduce cost and preserve shareholder value.
In February, Atlas flagged cost savings of between A$90-million and A$120-million by the end of June this year, with the savings to be achieved through a range of initiatives, including productivity improvements.
The all-in cash cost guidance for the full year was also lowered from A$67.29/t achieved in the first half of 2015, to between A$60/t and A$63/t.
The results for the corporate review were expected within two weeks, Atlas said, with trading in the company’s shares to remain suspended until then.
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