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Atlas Iron ships a record amount

Editorial
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Atlas Iron has beaten its own full year production guidance, shipping a record amount for FY2014.

According to the miner it managed to ship a huge 3.1 million tonnes in the June 2014 quarter, taking its total shipments to 10.9 million tonnes for the year to to June 30.

It also managed to achieve a 12 million tonne production target ahead of time.

Atlas stated that this is a huge leap for the company, and is a 47 per cent increase on the previous corresponding period, and played a part in the miner shipping more than 30 million tonnes since operations began.

"These strong quarterly and annual production results again demonstrate Atlas' ability to operate existing projects efficiently while at the same time developing new mines," Atlas MD Ken Brisenden said.

"We believe the combination of our existing operation, our resource base, and our pipeline of growth options puts us in an enviable position among our peer group."

Iron ore has seen a mixed market over the last six months, dropping to two year lows of $US 89 per tonne in June.

Brisenden explained the iron ore market had softened as a result of the additional supply introduced by the major producers over a relatively short period; this, combined with current credit constraints in China, led to lower headline prices for the metal.

However its fortunes have been reversed lately, with iron ore seeing a spike in price late last week at it pushed up to US$ 96 per tonne.

This still represents a 30 per cent drop in the value iron ore since the start of the year, but has many optimistic the commodity may be in for a bullish phase, but miners remain cautious.

"We are confident that the supply and demand balance for iron ore and the 'value-in-use' differential between products of differing grades means both price and product discounts have likely overshot their natural range," he said.

"While it is good to see some stability emerge in iron ore markets in recent weeks, we will continue to focus on those matters we can control."


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