Atlas media release today
DECEMBER 2012 HALF YEAR RESULTS
In a volatile and sharply weaker iron ore market, Atlas has made a cash surplus from operations2 of
A$70M (2011 - A$164M). During the period, the Company also commenced exports from the Mt Dove
mine, started development at the Abydos mine and shipped a record total of 3.34Mt (WMT).
The very strong recovery in iron ore prices is now generating substantial margins, as illustrated by an
unaudited cash surplus from operations2 of $32M for the month of January, 2013. Atlas is now
producing at a rate of 8Mtpa and is on track to increase production to 10Mtpa by the end of June 2013.
KEY POINTS
Financial
Cash surplus from operations2 of A$70M, being ~$20/t
Unaudited cash surplus from operations2 of $32M for January 2013 reflects an average realised
iron ore price per tonne of USD$130 CFR DMT compared to the half-year average price per
tonne of USD$98 CFR DMT (including Value Fines)
Underlying Profit after tax1 of $1M (Dec 2011: Underlying Profit after tax1 of $62M)
Statutory Net Loss After Tax of $256M adversely impacted by previously announced non-cash
impairment charge on capitalised tenement costs and non-cash write-down on non-core assets of
$258M
Half Year cash operating costs/t (FOB, excluding royalties) are in line with revised guidance of
$46 - $50/t for the 2013 financial year. Full year guidance for FY2013 remains at $46 - $50/t
US$325M financing (US$275M Term Loan B and undrawn AUD$50M revolving facility)
completed, ensuring Atlas is fully funded for its Horizon 1 projects including port facilities
$423M cash on hand as at 31 December 2012 includes Term Loan B facility and is after
spending $37M on working capital increases, payment of $49M in stamp duty (FY2011 Giralia
acquisition), paying $20M cash in dividend and spending $136M on expansion works
Horizon 2
Negotiations with a number of infrastructure owners and developers are progressing with the
intent of unlocking the value of Atlas’ Horizon 2 assets