Iron ore miner Atlas Iron Limited has posted lower quarterly shipments and lowered its annual output guidance. The company’s December quarter production report showed Atlas shipped 1.39 million tonnes of ore in the three months to the end of December 2011, down 5% from the quarter before.

HIGHLIGHTS FOR THE DECEMBER 2011 QUARTER

1. 1.39Mt (WMT) shipped during the December 2011 quarter taking Atlas’ shipments for the December 2011 half year to 2.85Mt (WMT)
2. Atlas achieved an average price per tonne for its 57.5% Fe product of ~ USD 120/t CFR (DMT) for the December 2011 quarter
3. Cash operating costs (FOB, excluding royalties) remain consistent with guidance of USD 42 to USD 45 per tonne range for the 2012 financial year
4. USD 380 million cash on hand at December 31st 2011
5. Wodgina expansion on target for completion in the June 2012 quarter
6. Horizon 1 Strategy feasibility studies (inclusive of rail analysis) are expected to be completed by March 31st 2012
7. Agreements signed to sell the Balla Balla and Yerecoin magnetite projects
8. Ex Ernst & Young Perth managing partner, Mr Jeff Dowling, appointed as an independent Non executive director and appointed as chairman of the Audit and Risk Committee
9. Subsequent to the quarter end, adverse weather conditions arising from Tropical Cyclone Heidi, including heavy rain in the Pilbara and damage to the Utah ship loading facility, has disrupted mining, haulage and shipping in January 2012. Consequently, Atlas now expects to ship approximately 5.5 to 5.7Mt (wet) for the 2012 financial year (6Mt target).

Mr David Flanagan MD of Atlas said that “This has been a robust performance from Atlas in the face of some difficult conditions outside its control. The team have delivered close to our production targets within cost guidance. Further, the sales of two of our magnetite projects have been agreed, we have completed 60,000 metres of drilling, continued the Wodgina expansion project and advanced delivery of our Abydos and Mt Dove DSO projects.”