Atlas Iron has shrugged off concerns about current market conditions and its thin margins, using its annual general meeting yesterday to remind shareholders of its development track record in an intensely competitive environment as proof it is a survivor committed to doing what it takes.
Managing director Ken Brinsden described Atlas' achievement of developing five mines in five years amid significantly lower cost producers BHP Billiton and Rio Tinto as like swimming with sharks, but denied their dominance could squeeze Atlas out.
"There are not many companies that can lay credit to that amount of activity in such a short period of time and of course doing it in an environment where we are genuinely swimming with sharks," he said.
"The point is for those that think that Rio or BHP in their own right make the market that's not correct, at least it's not correct to the extent that they would like you to believe because there is another 700-800mt of supply that they don't directly influence."
He said Atlas was intensely focused on cost reductions.
In its September quarter results reported last week Atlas revealed wafer thin profits.
It reduced its all in cash costs, minus interest and capital spending, to $68.90 per wet metric tonne, and received an average price of $70.83/wmt.
Atlas Iron chair David Flanagan said the company had a proven track record and planned on sticking around for decades.
"People perceive things as being worse than they are and I would argue very strongly now is one of those times when people think things are much worse than they are," Mr Flanagan said.
"This is why we think we have a powerful Pilbara niche, why we are going to be a survivor," he said.
"We can become the most efficient junior and mid tier player not just in Australia, but globally."
Mr Brinsden said there was still plenty of global demand for Atlas' iron ore from China as well as new export partner India and potentially Vietnam and Thailand.
"It's not just about China. We've started selling to India which is a bit of a revelation to us and it's nice to be able to have an alternate destination for your product," he said.
"We don't know where that product sector's going to go but we know today it's useful because basically every other week we're sending a cargo there."
Mr Brinsden said the planned development of Atlas' second stage expansion project, which includes starting production at Corruna Downs and McPhee Creek, could still be economical if it was trucked to port.
This is an option Atlas has considered before and Mr Brinsden said opening up the discussion again did not mean the company was not confident in its ongoing negotiations for a third party rail agreement.
