Australian iron ore miner Atlas Iron Limited has announced its financial results for the first half ended on December 31 of the financial year 2017-18.
According to the results, in the given period Atlas recorded a net loss of A$21.29 million, compared to a net profit of A$18.91 million in the same period of the previous financial year. Sales revenues of Atlas in the first half decreased by 38 percent year on year to A$308.03 million.
In the first half of the given year, Atlas shipped 5.2 million wmt of iron ore, falling by 35.8 percent year on year.
According to Atlas’ statement, it remained cashflow-positive in the given period despite high discounts for its lower grade iron ore. However, towards the end of the period, the company implemented measures to generate an improved product characterized by lower impurities. Trial shipments have performed well, with early evidence supporting Atlas’ view that this product will be priced at a premium to conventional Atlas fines. Accordingly, Atlas expects that the pricing premium will more than offset any increased costs associated with supplying the product. Meanwhile, the company remains on track to meet its volume and cost guidance for the full financial year 2017-18.
In the full financial year, the company expects its iron ore shipments to be around 9-10 million mt.