Atlas reports strong sales demand

Shares in Atlas Iron have gained after the miner reported strong demand for its direct shipping ore sales contracts in 2014.

Atlas said today it had signed sales contracts for around 60 per cent of its forecast direct shipping ore production next year and was nearing completion on contracts for up to an additional 20 per cent of production.

The remaining production will be retained for sale into the spot market.

The miner's new contracts range from 400,000 tonnes per annum to 1.2 million tonnes per annum and include both new forecast production and existing production rolled over.

Atlas said it had also achieved improved sales prices, with the average discount for production quality reducing materially across the new contracts.

"It is very pleasing to see such strong demand across Atlas' product range," Atlas managing director Ken Brinsden said.

"We are pleased with the improved financial terms Atlas has achieved in these contracts, which reflects both the reputation of Atlas as a reliable supplier and the strong relationships our marketing team has developed."

Atlas shares were 5.1 per cent higher at $1.16 at 9:55am WST.