AGO 0.00% 4.5¢ atlas iron limited

Atlas Iron Limited (ASX: AGO) is pleased to advise that it...

  1. 1,247 Posts.
    Atlas Iron Limited (ASX: AGO) is pleased to advise that it continues to substantially reduce its production costs. Allin cash costs* are now forecast to be A$60-63/WMT in the six months to 30 June 2015 compared with A$67.29/WMT in the first half of this financial year. Atlas aims to be at the lower end of this revised range by June, 2015. This anticipated reduction in production cost is already evident, with all-in cash costs* for the month of January 2015^ being A$60.80/WMT CFR. Atlas’ guidance for C1 cash costs in the six months to June 30, 2015 is A$42-45/WMT FOB compared with A$46.94 in the first half of this financial year. Again, Atlas expects to be at the lower end of this range by June, 2015. Atlas has continued to cut costs significantly and now expects to book annualised savings+ of A$90-120 million by June this year, compared with the previous financial year. This represents a substantial increase from the previous savings target of A$75-100 million and arises as a result of the continued cost reduction focus from the Atlas team and our suppliers. “We have and will continue to be unrelenting in our focus on reducing costs, with the goal of making us clearly the lowest cost junior iron ore producer in Australia while targeting to be among the lowest cost producers globally outside of the big four,” Mr Brinsden said. “Our track record in cost reduction over the past 12 months speaks for itself. “As a result, we are we are well placed to benefit from an increase in the Australian dollar iron ore price.” Mr Brinsden said that the cost-cutting program was being undertaken in parallel with the Company’s strong focus on maintaining its status as a consistent and growing producer. “Our results demonstrate that we can achieve substantial cost savings while maintaining our strong production performance,” he said.
 
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Currently unlisted public company.

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