Steady quarter for Atlas Iron

Atlas Iron has delivered a steady result for the three months to June and has reaffirmed its output guidance for FY18.

Perth-based Atlas shipped 3.1 million wet metric tonnes of iron ore at an average price of $55/wmt during the three months to June, generating $9 million in net cash.

Full cash costs for the quarter came in at $52/wmt.

The output result kept Atlas within its production guidance for FY17, with 14.4wmt of ore shipped over the 12 months to June.

And while plans to develop its Corunna Downs iron ore project were put on hold last month, a $1 million investment in its Mt Webber operation to increase production has allowed Atlas to maintain its forecast production guidance for FY18 of between 9wmt and 10wmt.

“Even though iron ore markets were challenging during the period, the company generated respectable positive cash flow – over $100 million in net cash from operations in FY17 after interest, contractor profit share and realised hedge impact,” managing director Cliff Lawrenson said.

“We are pleased to be able to deliver on our FY17 guidance, while reducing debt and building a more flexible production base for the future.

“We expect to see ongoing volatility in the iron ore market, hence it is most important that we build a defensive balance sheet, continue to add agility to our delivery model and develop capability beyond our current offering.”

Atlas shares were unchanged at 1.8 cents each at the close.