The company shipped 3.3 million wet metric tonnes in the September quarter, up 72%.

Full cash costs dropped by 12% to $58 per wet metric tonne, while the average realised price received rose by 11% to $61/wmt.

Atlas announced 2016 financial year guidance of 14-15Mt shipped at C1 costs of $35-38/wmt and full cash costs of $55-59/wmt.

Development capital is expected to be $10-15 million, with depreciation and amortisation of $6-7/wmt.

“The business is running really well,” Flanagan said on a teleconference this morning.

The progress has allowed Atlas to look at growth opportunities, and has started a prefeasibility study at the Corunna Downs project for completion in December.

With a resource of 65Mt at 57.3% iron, Atlas said the project could support a mine life of 6-7 years from 2017, which would maintain its annual production rate at 14-15Mt.

Atlas will also begin lump production at Mt Webber before the end of the year, which is expected to lower costs and deliver higher cashflow.

The company had $107 million cash at the end of September and Flanagan expects the cash balance to build in the coming quarters.

Atlas raised $87 million in July and Flanagan is confident the company can refinance its debt.

“If we can raise capital in a shit market like that, I’d back us, with a business that’s running like this, to have all of the options available to us that we should have and shareholders should see our ability to refinance, repay, do whatever, as a real catalyst of value for the business,” he said.

Flanagan said Atlas had held recent talks with all but one of its lenders, which had been positive.

“It feels like they like us and they like our business and they want to support us, and I’d expect that to turn into something that’s value-adding for everyone,” he said.

Atlas shares dropped 0.1c to 3.1c.