PERTH (miningweekly.com) – Iron-ore miner Atlas Iron has reported another tough quarter in the three months to September, with iron-ore shipments declining from 2.1-million tonnes in the June quarter, to 1.9-million tonnes.
Atlas in late July this year suspended crushing activities at its Mt Dove operation, in the Pilbara, and reduced the mining rate at its Mt Webber operation to about seven-million tonnes a year, resulting in decreased shipments for the quarter.
As a result of the suspension of the Mt Dove operation, and the inclusion of inventory impaired at the 2018 year-end in the sales volumes, Atlas’ C1 cash costs for the quarter decreased from the A$42/t reported in the June quarter, to A$40/t.
However, full-cash costs for the same period increased from A$62/t to A$64/t, with Atlas telling shareholders that the increase was owing to an upsurge in freight rates as a result of a competitive shipping market and increased royalty charges.
Atlas achieved an average iron-ore price of A$67/t during the September quarter, which was a significant improvement on the A$59/t in the June quarter, driven by improved benchmark prices, increased lump premiums, and a softening in the Australian dollar.
In addition to its iron-ore shipments, Atlas shipped 170 000 t of lithium direct shipping ore in the September quarter, following its first exports in the June quarter.
Atlas is likely to be delisted from the ASX, after suitor Redstone Corporation, a subsidiary of Hancock Prospecting, obtained a 93% interest in the company following a takeover offer that closed on October 12.
Redstone has advised that it would initiate a compulsory acquisition of the remaining shares in Atlas, and would remove the company from the official ASX list once this process was complete.