Pilbara iron ore producer Atlas looks to sell assets as price falls

WA’S Atlas Iron is looking to sell assets as it launches an extensive review of its Pilbara operations and finances following steep falls in the iron ore price.

ATLAS Iron is looking to sell assets as it launches an extensive review of its operations and finances following steep falls in the iron ore price.

The junior iron ore producer said the review, which is expected to take two weeks, was prompted by an uncertain outlook as the price of the steel-making commodity fell below $US47 per tonne at the weekend.

“Atlas has already commenced discussions with a number of its stakeholders in relation to various initiatives intended to further reduce costs and preserve value,” the company said in a statement on Tuesday.

The Pilbara miner said it had made significant progress in reducing its production costs but noted the iron ore price had fallen 24 per cent since the company released its first half results on February 24.

Atlas said it was not aware of any further necessary information to inform the market.

The company has requested a voluntary suspension of its shares while the review is carried out.

Financial adviser Lazard is assisting with the review.

Iron ore prices are trading at a 10-year low and are half what they were 12 months ago.

Atlas’ share price has plunged from $1.035 to 12 cents during that time.

Ongoing lower prices have forced junior miners to cut costs to break even.

Australia’s major iron ore miners BHP Billiton and Rio Tinto continue to ramp up production and are flooding the market with Australia’s top export despite falling prices and Chinese demand. Meanwhile, the Bulk Haulage division of McAleese Limited confirmed it will continue to undertake contracted road haulage and support operations for Atlas Iron but said it will keep the market informed of any material developments.

Last week, Pilbara miner BC Iron cut short a five-year mining contract with Watpac as it slashes costs in response to a plunging iron ore price.

Atlas Iron has recently slashed jobs and reported a half year net loss of $1.09 billion.

Shares in the company last traded at 12 cents.