Atlas Iron has talked up plans for a four-fold increase in iron ore production between now and 2015, after posting its first annual profit and declaring its first dividend.
Atlas Iron's net profit for the 12 months to June 30 was $169 million, a turnaround from the $40.8 million loss a year earlier, when it was still developing its initial minig projects.
Revenue increased almost seven fold to $584.9 million, helped by sharply higher production and the strong rise in iron ore prices.
Atlas has declared an unfranked maiden dividend of three cents per share.
Managing director David Flanagan said the profit result marked a pivotal point in Atlas's evolution.
The miner exported 4.6 million tonnes (mt) of iron ore from its Pardoo and Wodgina mines near Port Hedland during 2010-11.
It expects to export 6mt this financial year, and is targeting production capacity of 12mt by the end of 2012, based on the expansion of its Wodgina mine and the development of three new mines.
Atlas is planning to haul this ore to Port Hedland on a private road but will need access to rail infrastructure to support its longer-term growth plans, which target output of 22mt by 2015 and ultimately 40mt.
The company is considering several rail options to underpin the move to 22mt, including joint ventures, access arrangements with other miners such as BHP Billiton, Fortescue Metals or Hancock Prospecting, construction of its own railway and the involvement of a third party infrastructure provider.
"The Atlas story is just beginning," Mr Flanagan said.
"We now have the foundations on which to build a significant mining company."
Mr Flanagan said the miner ultimately aimed to achieve iron ore production of more than 40Mtpa, with further carbon steel commodity projects both in Australia and overseas.
"This record result highlights the strength of the company's achievements in what has been a relatively short time," Mr Flanagan said in a statement.
"The rapid transition from a small ASX listing in 2004 to our position as one of Australia's Top 100 public companies is a tribute to the company's staff, contractors and shareholders."
Atlas shares gained four cents, or 1.1 per cent, to $3.68 by 1122 AEST.
Cash operating costs for the 2010/11 year were in the company's targeted range of $40-43 a tonne and are expected to be in the vicinity of $42-$45 a tonne in the current financial year.
The cashed-up firm had cash of $366 million at the end of June and remains debt free.
Atlas' takeover bid for junior Pilbara iron ore explorer FerrAus, its fourth such deal, opens on September 5.
