Atlas announces its first profit

Atlas Iron has announced a maiden profit result of $30.1 million for the half year ended December 31, and has flagged that profit will increase in the second half of financial year 2011.

The Pilbara iron ore miner said profits would rise in the second half of FY11 on the back of increased sales volumes, higher iron ore prices and reduced operating costs.

Atlas' sales revenue spiked 400 per cent to $201.8 million over the period, up from $41.7 million in the previous half year, despite production being negatively impacted by bad weather forcing port closures.

Iron ore exports are approximately one shipment behind the schedule required to achieve Atlas' 1.5 million tonnes production target for the March 2011 quarter.

Atlas managing director David Flanagan said the result was a significant milestone for the company.

"It represents the culmination of our efforts in the successful development of the Pardoo and Wodgina mines and positions the Company extremely well for the second half of the 2011 financial year and beyond," Mr Flanagan said.