Consolidation is going well, from The Australian:
Atlas Iron has resumed full production at all three of its iron ore mines, with the junior miner also announcing a reduced break even cost of below $US50 vs the current spot iron ore price of $62.30 a tonne, thanks to a two-year “contractor collaboration agreement.”
Under the collaboration agreement, with MACA Limited, McAeese Group and QUBE Holdings, the contractors can receive an uplift in their rates as the iron ore price rises, up to a total of 25 per cent of postiive net operating cash flows.
The company also announced a capital raising, pending shareholder approval at a meeting on June 19, and expects its shares to resume trading after the capital raising.
“As part of the strategy to ensure Atlas’ long-term financial strength, the company intends to conduct a capital raising via a share placement and a shareholder participation offer. The capital raising will require shareholder approval at a meeting scheduled for June 19, 2015.”
Boy are we going lower.
