Atlas Reports Cost Cuts and Contractor Collaborations in Production Update

Atlas Iron (ASX:AGO) provided a production update for operations at its Wodgina and Abydos projects, which showed the company has made strong progress in cutting costs and ramping up production.
As quoted in the press release:

Atlas is pleased to advise that it has made further strong progress in its strategy to cut costs and ramp-up production, thanks largely to the success of its contractor collaboration agreements.
Full Cash costs fell to A$55/WMT CFR (pre collaborating contractor margin share) in the month of July from A$66/WMT CFR in the June Quarter. Atlas’ average realised sale price for July was A$57/WMT CFR. This cash margin was generated against a backdrop of an average Platts 62% IODEX Fe price for the month of US$52, which compares favourably to Atlas’ forecast Platts 62% IODEX Fe breakeven price for July in the Company’s supplementary prospectus dated 6 July of US$54.
Based on cost estimates for August and forward pricing arrangements in place for this month, we expect to generate increased cashflow for August relative to July.

David Flanagan, managing director at Atlas Iron, commented:

The collaboration agreements are working. Costs have fallen and our mines are generating positive cash flow. The Mt Webber mine has achieved ramp up in August and we look forward to shipping more tonnes and further reducing costs.

Click here to read the full Atlas Iron (ASX:AGO) press release.