Atlas Mining Releases Quarterly Report

Atlas Iron Ltd. (ASX:AGO) released its December 2014 quarterly report on Tuesday, noting that it is relying on lower oil prices, cheaper freight rates and a weaker Australian currency to turn a profit.

Q4 highlights include:

• Shipped 3.8M WMT exceeding guidance, 100% Standard Fines
• Cost reduction initiatives and reliable production performance has resulted in all-in cash costs of A$66/WMT CFR*, down from A$69/WMT in the Sep14 Quarter
• Dec month C1 cash cost A$43/WMT FOB, all-in cash cost A$65/WMT CFR*
• A$169M cash at 31 Dec, after A$50M outflow for capex/dividend/one-off restructuring costs
• Construction at the Mt Webber Stage 2 project reached practical completion
• FY15 capital expenditure guidance revised down by $25M to A$69M, $55M already incurred YTD

Atlas Managing Director Ken Brinsden stated:

Atlas’ successful focus on cost reduction has ensured the Company finished the Quarter with a robust cash balance of $169 million, despite the challenging market conditions, and now has minimal further capital expenditure requirements. At the same time, operations are exceeding our production guidance and we are strongly leveraged to any uptick in the Australian dollar price of iron ore.

Click here for the full Atlas Iron Ltd. (ASX:AGO) press release