Atlas earnings surge in FY20

Atlas Iron more than doubled its earnings this past financial year to $510 million, helped by increased production and a strong iron ore price.

The company, taken over by Gina Rinehart’s Hancock Prospecting in 2018, generated revenue of just over $1 billion in the year to October, up 46 per cent on FY19.

Its net profit after tax surged, up 168 per cent to $381 million.

Atlas attributed the strong year to consistent production at its primary Mt Webber operations, which shipped 1.2 million tonnes more than in FY19, along with a 25 per cent higher average realised price.

The business is also planning two new iron ore mines in the Pilbara: Corunna Downs and Miralga Creek.

Construction at Corunna Downs is 80 per cent complete, Atlas says, and all major operational contracts have been awarded.

First ore is scheduled for early next year.

Atlas said it had an active exploration program at Miralga Creek and was also progressing studies on long-term growth options, including further study on its McPhee Creek project.

Ms Rinehart’s Hancock Prospecting and Roy Hill businesses also achieved strong growth in FY20.

Hancock’s net profit grew by 56 per cent to about $4 billion and Roy Hill’s 60 per cent to $2.2 billion.

Roy Hill, which has operations in Pilbara’s Chichester range, repaid its entire $US7.2 billion ($A10.5 billion) debt in FY20, four years ahead of schedule.