Atlas Iron has posted a $1.4 billion full-year loss, blaming the falling price of iron ore.
Atlas recorded a net loss of $1.4 billion for FY15, compared to a net profit of $14.2 million in the previous financial year.
The huge loss comes as Atlas was forced to claim asset impairments and write downs of $1.1 billion.
Atlas managing director David Flanagan said the horror fall to iron ore prices this year, which bottomed out at $US47 a tonne, had hurt the company.
“Yes, the changing iron ore market has meant we have had to take large asset write downs and that hurts,” Flanagan said.
“While Atlas can’t influence the iron ore price, we have moved the needle on our cost base and are now seeing the results of the contractor collaboration model.”
Atlas was a high-profile victim of the iron ore collapse earlier this year after it closed its Pilbara mines and cut 600 jobs.
Since then, Atlas contractors have stepped in to help the company stay afloat, ushering in new profit-sharing agreements and cost-cutting measures which has seen the operations re-open.
The company was able to achieve a significant cost reduction of $150 million during the year, with the FY15 cash cost per tonne reduced by 16 per cent to $64.21/WMT. Atlas is targeting a break even cost of $US50/DMT.