ASX Announcement 26 May 2015
A t l a s B a c k M i n i n g a t Wo d g i n a
Atlas Iron Limited (ASX: AGO) is pleased to advise that mining operations recommenced at the Company's Wodgina iron ore mine in the Pilbara of Western Australia on Friday 22 May, 2015. Crushing will recommence on Thursday 27 May, 2015.
In response to record low iron ore prices experienced in March, Atlas suspended its mining operations in order to have the flexibility to execute a detailed review of its operating activities and achieve a significant restructure of its operating cost structure. Subsequently, Atlas entered into landmark cost saving agreements with a number of its key contractors (Contractor Collaboration Agreements).
The Contractor Collaboration Agreements deliver significant savings to Atlas' operating costs, and will contribute to significantly lowering Atlas' break-even cost at a benchmark IODEX 62% Fe CFR China price of approximately USD$50/dmt1 based on full cash costs2.
"With Abydos and Wodgina mines both now up and running we are on track to achieve the full benefit of the Contractor Collaboration Agreements, for the benefit of our shareholders, collaborating contractors and all employees," commented Ken Brinsden Atlas' Managing Director.
"We expect to achieve a production rate of 9Mtpa from Abydos and Wodgina by the end of June 2015, with shipping at Mt Webber expected to recommence in the September quarter, as we build towards our year-end production run rate of 14-15Mtpa."
"Again its worth pointing out this is all only achievable with the continued hard work of many good people," Mr
Brinsden said.
Mining is back on at Wodgina
1. IODEX 62%Fe CFR China breakeven defined by adjusted iron units, spot product FOB discount, moisture and full cash costs on the basis of targeted 14-15Mtpa run rate by year end. AUD:USD exchange rate of 0.785. 2. Full cash costs include; C1 production costs, royalties, freight, corporate and administration, expensed exploration and evaluation, interest expense and sustaining capital expenditure. C1 Cash costs are inclusive of both contractors and Atlas' costs within the total.
Investor Enquiries:
Atlas Iron +61 8 6228 8000
Ken Brinsden, Managing Director
Media Enquiries:
Read Corporate +61 8 9388 1474
Paul Armstrong +61 421 619 084
Atlas Iron Limited
ABN 63 110 396 168
Raine Square, Level 18
300 Murray Street Perth WA 6000
PO Box 7071
Cloisters Square Perth WA 6850
P: +61 8 6228 8000
F: +61 8 6228 8999
E: [email protected]
W: www.atlasiron.com.au