Microsoft Word - Draft ASX Announcement Operations to Continue 30 April 2015_KBRv3_Clean
ASX Announcement
30 April 2 15
OPERATIONS TO CONTINUE DURING MAY
AT ABYDOS AND WODGINA
Atlas Iron (ASX: AGO) is
pleased to advise that mining will continue at its Abydo s project during May,
with
processing and haulage largely uninterrupted as the Company depletes previously min ed stockpiles.
Mining will recommence at Wodgina as soon as possible in May, with processing an d haulage restarting shortly thereafter.
The decision to continue operating at these projects, rather than suspending production in April as previously announced (see ASX release dated April 10, 2015) is the result of a substantial reducti on in forecast cash costs for May at these mines. The cost reductions were achieved with the support of Atlas' key service providers.
The decision to continue operating was also taken in light of the successful production and sale of Atlas' first lump cargo from Abydos during March. Up to 65 per cent of Abydos' production will be in the lump product category which is priced at a premium (subject to variable iron ore market conditions), to Atlas' Sttandard Fines product.
The new operating model, inclusive of lump product streams and assistance provide d by key service providers, combined with positive pricing momentum, means Atlas expects to be cash flow-positi ve in May. This is based on target *all-in cash costs plus interest and sustaining capital expense, that are breakev en at a head ine IODEX62% CFR level less than USD$50/dmt (dry metric tonne).
Atlas will continue to work on defining contractual arrangements with key contractors i n an effort to convert these initiatives into viable longer-term operating solutions as soon as possible.
The Company is continuing to assess its options at the Mt Webber mine.
Atlas shares will remain in suspension, as announced on 21 April 2015. Positive mom entum has been generated
from the Company's operational review and consideration of the Company's capit al structure continues. Company is solvent and remains in compliance with its debt instruments.
The
Atlas will not be commenting further on these operational changes or financial discuss ions at this stage. However the Company will provide an update on these matters in due course.
Investor Enquiries:
Atlas Iron
Ken Brinsden, Managing Director
Media Enquiries: Read Corporate Paul Armstrong
+61 8 6228 8000
+61 8 9388 1474
+61 421 619 084
*'All-in cash costs' includes C1 production costs, royalties, freight, corporate and administrat ion, expensed exploration and evaluation.
Atlas Iron Limited
ABN 63 110 396 168
Raine Square, Level 18
300 Murray Street Perth WA 6000
PO Box 7 71
Cloisters Square Perth WA 6850
P: 61 8 6228 8000
F: 61 8 6228 8999
E: atlas@ atlasiron.com. u
W: www.a tlasiron.com.au