Photo by: Bloomberg
PERTH (miningweekly.com) – Record production has seen iron-ore miner Atlas Iron’s revenue reach all-time highs, while the company’s earnings before interest, taxes, depreciation and amortisation (Ebitda) also more than doubled.
Iron-ore production during the full year ended June reached 10.9-million tonnes, compared with the 7.4-million tonnes produced in 2013, in turn, increasing revenue levels by 58% to A$1.1-billion.
On the back of the 47% increase in iron-ore shipments, Ebitda for the full year surged to A$247.8-million, an 119% increase compared with the 2013 levels.
Net profit for the year reached A$14.25-million, which included an impairment charge of about A$18.5-million. The net profit for the year compared with a net loss of A$245-million in 2013, owing to A$458.1-million of write-downs.
Atlas MD Ken Brinsden said on Thursday the company had achieved its financial success despite the lower iron-ore prices during the year under review.
“The combination of record production and a tight focus on cost control has underpinned a substantial increase in cash generation. Our operations have met, or exceeded, all production and cost targets, with further gains forecast for this financial year.”
Brinsden pointed out that Atlas had benefitted from the completion of its Horizon 1 investment programme, which would see the company’s development investment during 2015 fall to A$125-million, as opposed to the A$372-million spent in 2014.
The Horizon 1 investment introduced the Abydos and Mt Webber mines to the Atlas portfolio. However, during the period under review the Pardoo mine was placed on care and maintenance, while the Mt Dove mine also completed production.
The Abydos and Mt Webber mines were expected to more than replace the production previously contributed by Pardoo and Mt Dove.
Brinsden said the decline in development investment would mark a key milestone for Atlas’ development, delivering a sustainable production rate of 12-million tonnes a year.
Atlas was forecasting shipments of between 12.2-million tonnes and 12.8-million tonnes for 2015, with the miner planning a reduction in cash costs to between A$47/t and A$50/t free-on-board.
“This reflects a host of planned savings, including a pit-to-port cost reduction programme. These various measures are expected to generate total savings of between A$50-million and A$80-million by June 2015, of which some initiatives are well under way,” Brinsden said.