Australian iron ore miner Atlas Iron has announced that it finished the quarter ended December 31 with cash on hand amounting to A$134 million, up from A$95 million on September 30, 2016, as a result of the strong cash flow generated during the quarter. A$54 million of this cash has been used to reduce the company’s debt under the debt restructure agreement with lenders, reducing its US term loan debt to A$118 million from the A$180 million owed in May last year.
According to the company’s managing director Daniel Harris, Atlas is now on track to be in a net cash position by the middle of this year.
Atlas Iron stated that its financial performance in the quarter ended December 31 reflected the strength of the realized iron ore price, offset partly by the impact of the lower Australian dollar on the balance of its US-dollar denominated debt.