REPORTING SEASON: Atlas Iron Ltd (AGO)

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Figure 1: Atlas Iron Ltd 12 month chart

 

Atlas Iron (AGO); Record production overshadowed by falling prices.

·         Iron ore miner Atlas Iron has reported a statutory profit after tax for the year of $14.3million, impacted by impairment costs of $17.8million, restructuring costs of $5.4million net of tax and MRRT benefit of $28.9million. Underlying profit after tax increased by $81.8million from the prior year to $8.6million.

·         Weaker iron ore prices have been a well communicated theme during the year. The result for AGO has seen the average realised price fall to $US98.10 per tonne from $US104.90 per tonne in the previous year. The balancing item was the 47% lift in iron ore shipments to 10.9million tonnes from 7.4million tonnes in 2013.

·         Atlas finished the year with $264million cash in the bank despite the $388million investment in mining and infrastructure stgelopment over the course of the last 12 months. The miner expects its investment or capital expenditure program to fall to $125 million in the year ahead. The all-in delivered cash costs of $A76.80 per wet tonne were in line with the previous year. AGO expects the average all in cost to continue to fall reflecting lowered capital expenditure costs.

·         AGO has announced a final dividend of $0.02 to be paid on 6 October 2014. The record date for the payment is 12 September 2014.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Tom Piotrowski, Market Analyst,