The Australian reported that Atlas Iron has been upgraded by Macquarie, as the Pilbara iron ore miner continues its rapid growth.

The bank upgraded the Perth based miner to "outperform" after it made a presentation at Macquarie's Sydney conference last week.

Analyst Mr Martin Stulpner said in a client note “We believe Atlas Iron's track record of ramp up and further capital light growth potential position it well. Atlas Iron is differentiated from its peers by the simplicity of its production model, taking advantage of low strip ratio mines that are located close to the port. This results in relatively low cash cost, despite the relatively cumbersome transport model of hauling ore by truck on public roads.”

He added that “Atlas Iron's management has shown flexibility and innovativeness in progressing the ramp up to 6 million tonnes per annum capacity by end 2010, and positioning the business for growth. This included the acquisition of Aurox to secure port capacity. The acquisition of Giralia has matched Atlas Iron's port capacity with an increased north Pilbara resource base.”

In December last year, Atlas made a friendly AUD 828 million move on its Pilbara neighbour Giralia Resources, following AUD 143 million takeover of Aurox Resources, which provided Atlas with extra capacity at Port Hedland's Utah Point port.

(Sourced from theaustralian.com.au)