Atlas Iron saves $1 million a year with executive reshuffle

Atlas Iron is set to save itself $1 million per year by reducing the number of senior executives from five to three.

As part of an ongoing strategy to reduce costs in light of the volatile iron ore price, Atlas advised Ken Brinsden has moved from executive director to non-executive director, while Mark Hancock will resume the position of CFO following the resignation of Brian Lynn for personal reasons.

Hancock’s new role will cover both his CFO duties plus those of his previous role as chief commercial officer.

Atlas managing director David Flanagan said the company was committed to identifying further savings to continue reducing its break-even price.

Last week the company announced full cash costs fell to $55/WMT in the month of July from $66/WMT in the June Quarter. Atlas’ average reaslised sale price for July was $57/WMT.

The company is targeting a break even cost of $US50/DMT.

Last month, Atlas 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 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.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.