David Flanagan will return to the position of managing director at Atlas Iron.
Flanagan was Atlas’ founding managing director from 2004 to 2012, when he became chairman. He returned in a full-time capacity in late 2014 as part of ongoing business improvement initiatives.
The company said his reappointment to the role will enable him to focus almost exclusively on executing the financial, corporate and administrative aspects of Atlas’ recent restructure.
Current managing director, Ken Brinsden, will remain in the company as executive director.
It has been a tumultuous year for Atlas, with the falling iron ore price forcing the company to close its Pilbara mines in April.
However contractors McAleese, MACA, BGC and Qube stepped in to help cut costs and keep the miner afloat, with mining now back underway at Wodgina, Abydos, and Mount Webber mines.
Flanagan said the changes implemented had been successful in cutting the Atlas’ costs and repositioning it for a strong future.
“But there is no denying that the demands and the workload over recent times have tested us,’ Flanagan said.
“That will continue in many respects as we ramp up production, continue to bolster our balance sheet and take other measures to ensure that Atlas is as strong as it can possibly be. This means having all hands on deck to get the job done.”
Brinsden said that while Atlas had endured a savage fall in iron ore prices during his 3.5 year tenure as managing director, the company had achieved cost reductions not previously thought possible.
“Atlas’ recent costs saving initiatives are a game-changer for Atlas,” Brinsden said.
“But there is more work to do as we deliver on our strategy to bring our three mines back to full capacity and maximise lump product sales.”
The Company confirms there will be no material changes to Mr Brinsden’s existing executive agreement and Mr Brinsden’s remuneration will remain the same including the 15% salary reduction announced to ASX on 2 December 2014.
The terms of Mr Flanagan’s executive agreement are materially the same as Mr Brinsden’s including the remuneration as set out below.
- Total Fixed Remuneration (TFR): $ 669,790.05 per annum, reviewed annually in August each year with first such review effective from November 2015.
- Short Term Incentive Plan: up to 40% of TFR annually, paid in cash and 20% deferral, reviewed annually in August each year.
- Long Term Incentive Plan: up to 100% of TFR annually, paid in cash (or shares with shareholder approval) subject to the applicable plan rules and the discretion of the Board.
- Payment on termination: 12 months of TFR.
- Term: The appointment is ongoing subject to termination provisions.