Atlas beats full-year guidance

Perth-based iron ore miner Atlas Iron has beaten its full-year profit guidance after shipping 3.1 million tonnes in the June quarter.

The company said the result took shipments to a record 10.9mt in FY14, up 47 per cent from FY13.

The June quarter result means Atlas hit its 12mt annual rate ahead of schedule.

“We believe the combination of our existing operations, our resource base and our outstanding pipeline of growth options puts us in an enviable position among our peer group,” Atlas managing director Ken Brinsden said.

However he said the iron ore market had softened as a result of the additional supply introduced by the major producers over a relatively short period.

This, combined with current credit constraints in China, had led to lower prices for the benchmark 62 per cent Fe product and increased discounts for products of Atlas’s nature in the June quarter, Mr Brinsden said.

“We are confident that the supply and demand balance for iron ore and the value-in-use differential between products of differing grades, means both price and product discounts have likely overshot their natural range,” he said.

“While it is good to see some stability emerge in iron ore markets in recent weeks, we will continue to focus on those matters we can control.”

Atlas shares closed 5.3 per cent lower at 62 cents per share.