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Atlas initiates business review as iron-ore price slumps

Atlas initiates business review as iron-ore price slumps

Photo by Bloomberg

7th April 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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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.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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