Atlas Iron have declared significant cost savings will continue through the year, aiming for annualised savings of $90 to $120 million by June this year.
Having brought the all-in-operating cost down to $67.29 per Wet Metric Tonne in the first half of FY15, Atlas have declared they be producing at $60 to $63/WMT by the end of FY15.
Already Atlas achieved an average of $60.80/WMT for the month of January 2015.
The guidance for C1 cash costs is down to $42-45/WMT, compared to $46.94 achieved in the first half FY15.
Managing Director Ken Brinsden said Atlas’s track record for cost reduction over the past 12 months spoke for itself.
“We have and will continue to be unrelenting in our focus on reducing costs, with the goal of making us clearly the lowest cost junior iron ore producer in Australia while targeting to be among the lowest cost producers globally outside the big four,” Brinsden said.
“We are well placed to benefit from an increase in the Australian dollar iron ore price.”
Brinsden said the cost-cutting program would be undertaken in parallel with Atlas’s strong focus on being a consistent and growing producer.
“Our results demonstrate that we can achieve substantial cost savings while maintaining our strong production performance,” he said.