Writedowns cause loss for Atlas Iron
Market watch top headlines
Atlas Iron has posted a first half loss of $256 million, caused by writedowns in the value of several exploration areas.
The emerging Pilbara miner's result for the six months to December 31 was down from a $6.08 million profit in the previous corresponding period.
The loss includes $455 million in charges related to impairments on Atlas' undeveloped Horizon 1 and 2 project areas and other tenements.
Underlying profit in the six months to December of $1 million was down from $62.2 million in the previous corresponding period, as sales revenues dropped because of weaker iron ore prices.
But the company said the recent recovery in iron ore prices was generating improved margins, with a cash surplus of $32 million made in January.
Production is currently at eight million tonnes per annum, and on track to increase to 10 million tonnes per annum by the end of June 2013.
Atlas said it would not pay a dividend for the first half period.
Its shares were down 8.5 cents, or 5.3 per cent, at $1.515 at 1045 AEDT.