ASX Announcement 11 June 2015
D a v i d F l a n a g a n A p p o i n t e d a s M a n a g i n g D i r e c t o r
Atlas Iron (ASX: AGO) advises that David Flanagan will return to the position of Managing Director, Ken Brinsden will switch from Managing Director to Executive Director and Non-Executive Director the Hon. Cheryl Edwardes will become Chairman, as part of changes aimed at maximising the effectiveness of the Company's restructure and new operating strategies.
Mr Flanagan was Atlas' founding Managing Director from 2004 to 2012, when he became Chairman. He returned in a full-time capacity in late 2014 as part of ongoing business improvement initiatives.
Mr Flanagan's appointment as Managing Director will enable him to focus almost exclusively on executing the financial, corporate and administrative aspects of Atlas' recent restructure.
Mr Brinsden, who prior to becoming Managing Director held the positions of Chief Development Officer and Chief Operating Officer, will be an Executive Director dedicated to ensuring the success of the Company's new operational approach, including the innovative contractor collaboration model.
Consistent with best practice corporate governance, Mrs Edwardes will take over from Mr Flanagan as
Chairman in a Non-executive capacity.
Mrs Edwardes, who is a lawyer, was the Western Australian State Attorney-General and a senior Cabinet Minister. She will bring a wealth of legal and governance experience to the role. Mrs Edwardes is currently Chairman of ASX listed Vimy Resources Limited.
"I am honoured to have been invited to take on this position," Mrs Edwardes said. "Atlas has a strong future with excellent projects and exceptional people. The Company's renegotiated supplier terms means we are establishing a stable operating platform that is strongly leveraged to any uptick in the iron ore price."
Mr Flanagan said "The extensive changes implemented recently have been highly successful in cutting Atlas' costs and positioning the Company for a stronger future. But there is no denying that the demands and the workload over recent times have tested us."
"That will continue in many respects as we ramp up production, continue to bolster our balance sheet and take other measures to ensure that Atlas is as strong as it can possibly be. This means having all hands on deck to get the job done."
Mr Brinsden said that while Atlas had endured a savage fall in iron ore prices during his 3.5 year tenure as Managing Director, the Company had achieved cost reductions not previously thought possible.
"Atlas' recent costs saving initiatives are a game-changer for Atlas," Mr Brinsden said. "But there is more work to do as we deliver on our strategy to bring our three mines back to full capacity and maximise lump product sales."
The changes are effective from Thursday, 11 June 2015.
The Company confirms there will be no material changes to Mr Brinsden's existing executive agreement and Mr Brinsden's remuneration will remain the same including the 15% salary reduction announced to ASX on 2 December 2014.
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
The terms of Mr Flanagan's executive agreement are materially the same as Mr Brinsden's including the
remuneration as set out below.
o Total Fixed Remuneration (TFR): $ 669,790.05 per annum, reviewed annually in August each year with first such review effective from November 2015.
o Short Term Incentive Plan: up to 40% of TFR annually, paid in cash and 20% deferral, reviewed annually in August each year.
o Long Term Incentive Plan: up to 100% of TFR annually, paid in cash (or shares with shareholder approval) subject to the applicable plan rules and the discretion of the Board.
o Payment on termination: 12 months of TFR.
o Term: The appointment is ongoing subject to termination provisions.
Investor Enquiries:
Atlas Iron +61 8 6228 8000
David Flanagan Ken Brinsden
Media Enquiries:
Read Corporate +61 8 9388 1474
Paul Armstrong +61 421 619 084
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