Atlas Iron Limited (ASX:AGO) Atlas December 2011 Quarterly Activities Report
Sydney, Australia (ABN Newswire) - 'This has been a robust performance from Atlas in the face of some difficult conditions outside its control. The team have delivered close to our production targets within cost guidance.
Further, the sales of two of our magnetite projects have been agreed, we have completed 60,000 metres of drilling, continued the Wodgina expansion project and advanced delivery of our Abydos and Mt Dove DSO projects,' commented Atlas Managing Director, David Flanagan.
Highlights for the December Quarter include:
- 1.39Mt (WMT) shipped during the December 2011 quarter taking Atlas' shipments for the December 2011 half year to 2.85Mt (WMT)
- Atlas achieved an average price per tonne for its 57.5% Fe product of ~ USD 120/t CFR (DMT) for the December 2011 quarter
- Cash operating costs (FOB, excluding royalties) remain consistent with guidance of AU$42- 45/t range for the 2012 financial year
- AU$380 million cash on hand at 31 December 2011
- Wodgina expansion on target for completion in the June 2012 quarter
- Horizon 1 Strategy feasibility studies (inclusive of rail analysis) are expected to be completed by 31 March 2012
- Agreements signed to sell the Balla Balla and Yerecoin magnetite projects
- Ex-Ernst & Young Perth managing partner, Jeff Dowling, appointed as an independent non-executive director and appointed as chairman of the Audit and Risk Committee
- Subsequent to the quarter end, adverse weather conditions arising from Tropical Cyclone Heidi, including heavy rain in the Pilbara and damage to the Utah ship loading facility, has disrupted mining, haulage and shipping in January 2012. Consequently, Atlas now expects to ship approximately 5.5 to 5.7Mt (wet) for the 2012 financial year (6Mt target).
Full Quarterly Activity Report here:
http://media.abnnewswire.net/media/en/docs/ASX-AGO-575066.pdf
About Atlas Iron Limited:
Atlas Iron Limited (ASX:AGO) is mining and exporting from its 100%-owned Pardoo and Wodgina Iron Ore projects, located 75 kilometres and 110km by road from Port Hedland in the Pilbara region of Western Australia. In the 2009/10 financial year Atlas shipped over 1.2 million tonnes of Pardoo Direct Shipping Ore (DSO). Atlas is expanding its production from its Wodgina and Pardoo DSO mines following the commissioning of the Utah Point port facility and is targeting exports at an annualised rate of 6 million tonnes by the end of 2010. When combined with additional export tonnages from its Abydos & Mt Webber DSO Projects, the Company is targeting exports at an annualised rate of 12 million tonnes during 2012.
Source:
Atlas Iron Limited
Contact:
Atlas Iron Limited
T: +61-8-9476-7900
F: +61-8-9476-7988
WWW: www.atlasiron.com.au
