Atlas aims to be cash positive by mid-2017 as it pays off more debt
PERTH (miningweekly.com) – Iron-ore miner Atlas Iron has repaid A$54-million in debt, following a strong December quarter, reducing its US term loan debt to A$118-million.
The miner said last week that it had completed the December quarter with some A$134-million cash on hand, as a result of the cash flow generated during the three-month period. This was up from the A$95-million cash on hand at the end of September 2016.
The miner noted that the significant increase in cash came after making principal and interest repayments of some A$20-million during the December quarter, and a A$3-million repayment to the Western Australian government in relation to the royalty relief programme.
Under cash sweeping arrangements with lenders, any cash on hand at the end of each quarter in excess of A$80-million will be paid to the lenders. As a result, Atlas has now repaid A$54-million in debt.
“Atlas is now on track to be in a net cash position by the middle of this year,” said interim MD Daniel Harris.
“This markedly stronger balance sheet will help make Atlas more resilient and better placed to capitalise on its opportunities, including the development of the Corunna Downs project.”
A December definitive feasibility study found that the project, in the Pilbara, could deliver some four-million tonnes a year of lump and fines direct shipping ore over an initial mine life of five to six years.
The project is expected to require a capital investment of between A$47-million and A$53-million, and the Atlas board is expected to take a development decision in March this year.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
SafeQuip is a leading distributor and manufacturer of fire safety solutions, offering a comprehensive range of products designed to meet all...
VISIT SHOWROOM
ROSOND provides fast, efficient, safe, and cost-effective drilling and grouting services to mining and exploration industries throughout Africa.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
