Photo by: Bloomberg
PERTH (miningweekly.com) – The share price of iron-ore miner Atlas Iron tumbled nearly 70% on Monday as the company resumed share trading after more than three months.
Atlas in April suspended share trading shortly before announcing the suspension of its operations in the Pilbara, as the iron-ore price crashed and operations became uneconomical.
By June this year, the miner had restarted production at all three of its Pilbara mines and was now targeting a production rate of between 14-million tonnes and 15-million tonnes a year from the three operations.
Founding MD David Flanagan was also reappointed as MD of the battle-weary company in June, allowing Ken Brinsden to operate as executive director.
Meanwhile, plans to raise some A$180-million in capital also fell short, with Atlas only raising A$86-million from existing shareholders, contractors and new investors.
With the resumption of trading on Monday, Atlas’s shares tumbled from a high of 4c a share, to a low of 3.1c a share.