Finance Finance News Atlas Iron returns to profit

Atlas Iron returns to profit

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Iron ore miner Atlas Iron has returned to profit and is forecasting higher production and lower costs in fiscal year 2015.

Atlas has swung to a $14.3 million net profit after making a $245 million loss in 2012/13.

It has reduced its final dividend to two cents a share from three cents previously.

Atlas was affected by weaker iron ore prices during the year, which fell to an average $US98.10 a tonne from $US104.90.
The average price in the second half was only $US86.29 and prices have fallen since June.

That was offset by a 47 per cent lift in iron ore shipments to 10.9 million tonnes.

All-in delivered cash costs of $A76.80 a wet tonne were in line with the previous year, which it said was positive given increases in distances that its Pilbara ore had to be hauled during the year.

Net operating cashflow more than doubled to $289.2 million.

“The combination of record production and a tight focus on cost control has underpinned a substantial increase in cash generation,” chief executive Ken Brinsden said.

Atlas is forecasting shipments of 12.2 million to 12.8 million tonnes this financial year.

It intends generating total savings of $50 million to $80 million by June 2015.