Atlas swings to loss

ATLAS Iron is back in the red after reporting a loss for the 2018 financial year.
Atlas swings to loss Atlas swings to loss Atlas swings to loss Atlas swings to loss Atlas swings to loss

Mt Webber

Staff reporter

Revenue dropped from A$871 million in FY17 to $547 million due to a drop in shipments from 14.4 million tonnes of iron ore to 9.2Mt.

The company's average realised price, excluding financial instruments, dropped slightly to $59 per wet metric tonne cost and freight from $61/wmt.

Full cash costs rose to $59/wmt from $53/wmt.

Underlying EBITDA slumped to $16 million from $116 million a year earlier.

Atlas said logistics services for lithium direct shipping ore and manganese lump contributed $2.3 million in net income to the bottom line.

After posting a $47.9 million profit for FY17, Atlas recorded a $163 million statutory loss.

The loss included a previously announced $92 million impairment charge relating to the Mt Webber mine and Corunna Downs development project.

Atlas had debt of $85 million and cash of $57 million at June 30.

Hancock Prospecting now owns 70.2% of the company as per a 4.2c per share cash takeover.

Atlas said its lenders had chosen not to accelerate the company's repayment obligations, despite its rights to do so due to the change of control.

The Hancock offer closes on August 31 after which a review of the Atlas business will be conducted.

Atlas said it would formalise FY19 guidance on completion of the review, but for now, it would operate its Mt Webber mine at around 7Mt per annum and continue lithium DSO processing activities.

Atlas shares last traded at 4.2c, in line with the takeover price.