Atlas Iron seeks suspension of shares amid tumbling iron ore market
Australia’s Atlas Iron has requested that its shares be suspended from quotation on the Australian Securities Exchange as it awaits the outcome of a review of its business amid a slump in iron ore prices.
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In its request to the exchange on Tuesday April 7, the junior miner said it was undergoing an extensive review of its operations, financial outlook, asset sale opportunities and capital structure following the recent rapid decline in prices for the steelmaking raw material.
It has requested that its shares be suspended from trading at least until it makes an announcement of the outcome of its review in the next two weeks.
The miner has appointed financial advisory and asset management firm Lazard to assist with the review.
Metal Bulletin’s daily 58% Fe Iron Ore Premium Index has fallen by more than a third since the beginning of the year. It stood at $41.07 per tonne cfr Qingdao on Monday April 6.
Atlas’ Standard and Value fines are of 56.4% Fe and 53.3% Fe grades, respectively, according to its latest reserve and resource update in August 2014.
It reported negative earnings before interest, taxes, depreciation and amortisation (Ebitda) of A$15 million ($12 million) on asset impairment for the six months to December 31, according to its latest half-year financial report.