Australian iron ore miner Atlas Iron Limited has announced that it has made strong progress in its strategy to cut costs and ramp up production, thanks largely to the success of its contractor collaboration agreements.
The company’s cash costs for iron ore production fell to A$55/mt in July from A$66/mt in the June quarter, while its average realized sales price for July was around A$57/mt. The company expects increased cash flow in August compared to July.
Atlas’ iron ore exports resumed from Mt Webber, and the company remains on track to achieve annual shipments in the range of 14-15 million mt by December this year.
In addition to Atlas’ strategy to continue growing its hedging program, the company is also executing underlying sales agreements with high-quality counterparties and these agreements are expected to provide further certainty around shipping volumes and pricing mechanisms.