Atlas Iron hangs on

The second of the quarterly production reports out today is from Atlas Iron:

 Globally competitive costs, costs continuing to fall and targeting lower end of FY15 guidance
 Normalised EBITDA^ YTD is approximately breakeven, despite challenging market conditions
 North Pilbara mine development now complete
 Stable production and shipping volumes, reliable operators
 Well established and diverse customer base
 Strong leverage to increases in A$ iron ore price
 Significant Pilbara port rights and iron ore resource inventory
 Opportunities to further improve near-term cash flow – A$, diesel, sea freight, Royalty relief
 Shipped 3.8M WMT exceeding guidance, 100% Standard Fines
 Cost reduction initiatives and reliable production performance has resulted in all-in cash costs of
A$66/WMT CFR*, down from A$69/WMT in the Sep14 Quarter
 Dec month C1 cash cost A$43/WMT FOB, all-in cash cost A$65/WMT CFR*
 A$169M cash at 31 Dec, after A$50M outflow for capex/dividend/one-off restructuring costs
 Construction at the Mt Webber Stage 2 project reached practical completion
 FY15 capital expenditure guidance revised down by $25M to A$69M, $55M already incurred YTD

Breakeven now but not for long.

David Llewellyn-Smith
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      • migtronixMEMBER

        Full retard: “There appears to be speculation in markets that the BOJ will lower deposit rate after the SNB”: Nikko Securities via BBG

    • MIg Citic get supsended all the time.
      CP really has his hands full with that mob
      If it was for something like below I would take some notice. WW

      2008 HONG KONG (MarketWatch) — Citic Pacific Ltd. shares more than halved in value Tuesday as brokers issued price downgrades and criticized the firm for a “cowboy” hedging policy, warning losses from its one-way currency bets could balloon if the U.S. dollar continues to strengthen against the Australian dollar and euro.

      Citic (267) shares closed 55% lower at HK$6.52 in Hong Kong Tuesday. The firm, the Hong Kong branch of China’s biggest state-owned investment company, said Monday that it faced a loss of HK$14.7 billion ($1.9 billion) after its positions in the foreign exchange market soured. Trading in Citic shares was suspended Monday.

      • Citic is suspended probably because of insider trading. Citic is a big shareholder of Citic Securities. Citic Securities was punished by the CSRC (China Securities Regulatory Commission) last weekend on the margin trading business. Citic sold a lot of Citic Securities shares just BEFORE the CSRC announcement came out. Citic Securities closed limit down (-10%) on Monday.

      • EV Mr CP is going to love that news, in the lead up to a local elections. If you are correct they are fully discredited.WW

  1. Atlas confirms running at a loss
    The West Australian January 20, 2015, 7:51 am

    Shares in Atlas Iron fell after the miner revealed it was selling its product at a loss during the December quarter.
    The mid-tier Pilbara miner said it had lifted production by 23 per cent over the quarter to 3.8 million tonnes.
    However despite cutting all-in cash costs 4 per cent to $66 a tonne, its average sale price fell 12 per cent to $63 a tonne.

    But the company said it maintained a cash balance of $169 million and was continuing to reduce costs.

    Atlas managing director Ken Brinsden said the company’s continuing hard work, innovation and the ongoing co-operation of its suppliers and contractors, combined with the lower Australian dollar, lower oil prices and falling ocean freight rates would help to boost cash flow in the current half.
    “At the same time, operations are exceeding our production guidance and we are strongly leveraged to any uptick in the Australian dollar price of iron ore,” he said.
    Atlas shares were down one cent, or 5.26 per cent, to 18 cents at 7.50am.

    • and we are strongly leveraged to any uptick in the Australian dollar price of iron ore

      So short AUD. Good luck.