Atlas Iron Limited has announced that it exported a record 547,404 tonnes of DSO in March 2011, beating the Company's previous record of 541,000 tonnes recorded in October 2010.

The result has delivered Atlas AUD 240 million cash on hand as at March 31st 2011, up from AUD 143 million as at the end of the previous quarter (excluding any cash acquired via the Giralia takeover). The increase reflects strong sales volumes, higher iron ore prices and reduced operating costs relative to the first half.

Exports for the March 2011 quarter were 1.39 million tonnes, in line with the guidance provided to the market on February 24th 2011.

Atlas is on target to export 1.5 million tonnes in the June quarter. It expects cash costs to remain at AUD 40 to AUD 43 per tonne for the rest of this financial year, with depreciation and amortisation anticipated to be an additional AUD 5 to AUD 7 per tonne. These production costs are globally competitive, which is a significant achievement given the low capital costs of the Atlas projects.

Mr David Flanagan MD of Atlas said that the record result reflected the highly efficient nature of Atlas' operations and their ability to generate substantial cash flow. He added that "This strong result, which came despite terrible weather during the quarter, highlights the underlying strength of the Atlas business. It also represents the ongoing efforts of our staff and contractors across our operations, who have worked hard to set a fresh record."