Atlas hit by $25m impairment

Iron ore exporter Atlas Iron has taken a $25 million hit to earnings as a result of restructuring and valuation changes to its Centaurus Metals investment.

Adopting mark to market valuation and restructuring will affect the June 2014 financial statements, the company said.

Atlas also highlighted success in its portfolio rationalisation, saying it anticipated cash savings of around $10 million.

The savings were driven by divestment of its Shaw River Manganese interest, sale of various tenements and sub-leasing of surplus office space.

Managing director Ken Brinsden said the initiatives reflected the company’s commitment to reduce costs.

“These measures are consistent with our drive to identify savings and ensure that our efforts are directed at those areas which will maximise shareholder returns,” he said.

Earlier this year, the company embarked on a plan to cut costs and offered discounts of up to 10 per cent to Chinese customers.

Productivity improvements were to drive costs down by up to $10 per tonne, from $76.80.

Mr Brinsden also hosed down takeover speculation at the annual Diggers & Dealers Conference in August, saying there was a strong implied value in its undeveloped iron ore assets.

Atlas shares were down 5.8 per cent to 64.5 cents at the time of writing.