By Courtney Pearson
7 April, 2015
THE iron ore price crash may take a high profile victim, with Atlas Iron suspending its shares from the ASX to review its future.
The price fell to US$47.50 during the Easter weekend – well below the company’s all-in cash cost guidance of between $60 and $63/WMT predicted for the second half of FY15 – prompting a “comprehensive review”, the company announced.
“The voluntary suspension is requested pending the outcome of an extensive review of the company’s operations, financial outlook, asset sale opportunities and capital structure in the light of the recent rapid fall in the iron ore price,” Atlas said in a statement.
Atlas is in talks with shareholders in an attempt to further reduce costs and preserve value. The company expects to release the outcome of the review within the next two weeks.
In February the company announced that it would continue to cut operating costs for the 2015 financial year, hoping to save between $90 million and $120 million by June.
“As a result, we are well placed to benefit from an increase in the Australian dollar iron ore price,” Atlas managing director Ken Brinsden said at the time.