Atlas Iron Surges on Better Looking Books 1/6/17
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Posted On: 02/13/2017 7:26:11 PM
Atlas Iron Surges on Better Looking Books 1/6/17
https://thewest.com.au/business/mining/atlas-...tunnel-ng-
Stuart McKinnon - Friday, January 06, 2017 12:22AM
Shares in resurgent iron ore miner Atlas Iron were up sharply today after the company announced yesterday it expected its bank balance to exceed its debts by the middle of this year, after making a repaying of $54 million. Yesterday’s announcement, which was made after market close, sent shares in the miner up 0.4 cents, or 14.82 per cent, to 3.1 cents by the close after the stock hit an intraday high of 3.3 cents, its highest since March last year.
Atlas said yesterday it ended the December quarter with $134 million cash on hand, up from $95 million at the end of September. However, under cash sweep requirements from its lenders, any cash on hand at the end of each quarter in excess of $80 million must be repaid. The repayment of $54 million reduces the company’s US term loan debt to $118 million, down from $180 million in May last year following its forced restructure.
“The significant increase in cash came after making principal and interest payments of $20 million during the December 2016 quarter and $3 million in repayments to the WA Government in relation to the royalty relief program,” the company said in a statement after the market close.
Atlas’ turnaround is mainly attributable to a big rebound in the price of iron ore last year. Iron ore soared 81 per cent in 2016, hitting a two-year high of $US83.59 a tonne on December 12. It was trading at $US77.25 a tonne yesterday.
The company said it was well-positioned to continue its strong performance in the March quarter because of hedging contracts in place that protected it against downside in the spot iron ore price.
Interim managing director Daniel Harris said the company had enjoyed a remarkable financial turnaround from its position prior to the restructure early last year.
“Atlas is now on track to be in a net cash position by the middle of this year,” he said. “This markedly stronger balance sheet will help make Atlas more resilient and better-placed to capitalise on its opportunities, including the development of the Corunna Downs project.” The company said it would release its December quarter report later this month.
Atlas Iron’s new managing director Cliff Lawrenson will start at the company this month.
And in other positive news for the company, its new managing director and chief executive, former FerrAus boss, Cliff Lawrenson is expected to start on Monday, January 16, instead of Wednesday, February 1, as previously advised. With Mr Lawrenson joining the board, Tony Walsh will resign as a director but remain as the company secretary.
https://thewest.com.au/business/mining/atlas-...tunnel-ng-
Stuart McKinnon - Friday, January 06, 2017 12:22AM
Shares in resurgent iron ore miner Atlas Iron were up sharply today after the company announced yesterday it expected its bank balance to exceed its debts by the middle of this year, after making a repaying of $54 million. Yesterday’s announcement, which was made after market close, sent shares in the miner up 0.4 cents, or 14.82 per cent, to 3.1 cents by the close after the stock hit an intraday high of 3.3 cents, its highest since March last year.
Atlas said yesterday it ended the December quarter with $134 million cash on hand, up from $95 million at the end of September. However, under cash sweep requirements from its lenders, any cash on hand at the end of each quarter in excess of $80 million must be repaid. The repayment of $54 million reduces the company’s US term loan debt to $118 million, down from $180 million in May last year following its forced restructure.
“The significant increase in cash came after making principal and interest payments of $20 million during the December 2016 quarter and $3 million in repayments to the WA Government in relation to the royalty relief program,” the company said in a statement after the market close.
Atlas’ turnaround is mainly attributable to a big rebound in the price of iron ore last year. Iron ore soared 81 per cent in 2016, hitting a two-year high of $US83.59 a tonne on December 12. It was trading at $US77.25 a tonne yesterday.
The company said it was well-positioned to continue its strong performance in the March quarter because of hedging contracts in place that protected it against downside in the spot iron ore price.
Interim managing director Daniel Harris said the company had enjoyed a remarkable financial turnaround from its position prior to the restructure early last year.
“Atlas is now on track to be in a net cash position by the middle of this year,” he said. “This markedly stronger balance sheet will help make Atlas more resilient and better-placed to capitalise on its opportunities, including the development of the Corunna Downs project.” The company said it would release its December quarter report later this month.
Atlas Iron’s new managing director Cliff Lawrenson will start at the company this month.
And in other positive news for the company, its new managing director and chief executive, former FerrAus boss, Cliff Lawrenson is expected to start on Monday, January 16, instead of Wednesday, February 1, as previously advised. With Mr Lawrenson joining the board, Tony Walsh will resign as a director but remain as the company secretary.
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