Atlas Iron hit positive cash flow last month as prices kept rising and the troubled miner shipped more iron ore.
“Atlas Iron is pleased to advise that it recorded stronger margins in the month of August on the back of increased realised prices,” the company told the market today.
The miner also shipped 1.18 million tonnes in August, a 33% increase from July.
Atlas also achieved its targeted production rate of 14 to 15 million tonnes in August, four months ahead of schedule, and expects to sustain that level.
The miner continued cost cutting. The cost per tonne fell to $56.52 in August from $66 in the June Quarter.
And the miner’s average sale price was $61 a tonne in August.
“Atlas is in an increasingly strong position with positive cash flow, improved costs and rising production,” says managing director David Flanagan.
“We completed a complicated production ramp-up ahead of schedule while reducing costs. The team is doing an outstanding job.”
Atlas in April announced it was mothballing its mines because it was costing more to dig out a tonne of ore than buyers were prepared to pay.
However, it restarted after doing deals with contractors and cutting costs hard. It also raised $A87 million from shareholders to give the company a cushion against price fluctuations.
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