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Pa 1 of 9 age
Note 1: See Appendix 1 for de etail of mine pro oduction at Pard and Wodgin doo na Note 2: Ore T Tonnes Mined re epresents ore to onnes delivered to Run-of-Mine (ROM) at the Plant e P
Table 2: In nventory an Shippin nd ng December 2012 r Quarte er Inventory y Final Pro oduct Stocks - Port s Shipping g Ore Tonn Shipped (Wet) nes d Ore Tonn Shipped (Dry) nes d 1,745,6 678 1,609,4 460 1,592,654 1,476,240 153,0 024 133,2 220 10% 9% (t) 185,5 547 September S 2012 Quarter (t) 114,381 Varian nce Quar rter (t) ) 71,1 166 Variance uarter Qu (%) 62%
Production for the De n ecember 20 012 Quarte resulted in shipments of 1.75M (WMT) including er Mt four Atlas V Value Fines cargos tot s talling 373,0 000t. This reflects a 10 increase on the September 0% e 2012 Quar and is in line with recent guida rter n r ance for shipped tonne for first h FY2013 Cash es half 3. operating c costs (FOB, and exclud ding royaltie for the December 2012 Quarte were ach es) D 2 er hieved in line with cu urrent guida ance of $46 - 50/t (FOB excluding royalties). B, g Please see Appendix 1 for furthe details of production outputs by mine. e er
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Iron ore sa ales for the December 2012 Quar rter were 1. .75Mt WMT up 10% fr T, rom the September 2012 Quar (1.59Mt WMT). rter t Iron Ore pr rices recove ered during the Decem mber 2012 Quarter as a result of im Q mprovemen in the nts Chinese economy an general sentiment in China following the announced change in political nd s n d leadership. The impa of the weak US d act w dollar contin nues to hav a dampe ve ening effec on the ct December 2012 Quar revenue despite s r rter es stronger sales volumes s. rage headlin sale pric for its sta ne ce andard prod duct for the December 2012 Qua e r arter was Atlas aver US$106 p tonne C per CFR (DMT) up from t the US$98 per tonne CFR (DMT achieved in the T) September 2012 Qua r arter. In addition to the stan ndard grade cargos, At e Atlas also so four Atla Value Fin cargos totalling old as nes 373,000t w an Fe c with content of ~54% Fe dur ring the December 201 Quarter at an avera price 12 age of US$81 per tonne CFR (DMT The ove T). erall averag price for the Decem ge r mber 2012 Quarter inclusive o those Atla Value Fines cargos was US$101 per ton CFR (D of as s nne DMT), while Freight e costs for th quarter a he averaged ~ US$12 / DM MT. Prices hav continued to strengthen signific ve d cantly post quarter end with a Valu Fines ca q ue argo sold at US$120 DMT durin January and strong pricing achieved on standard grad product. 0 ng a de Atlas finalised three te contrac for a co mbined 2.2 erm cts 2Mtpa during the Dece ember 2012 Quarter with two C rther streng Chinese ste mills and a major internationa trading house to fur eel al h gthen its reliable cu ustomer bas During the Decem se. mber 2012 Quarter, th Compan also delivered a he ny cargo to a customer o outside Chin and will c na continue pu ursuing new marketing opportunitie w es. ter 7Mt uct een y Post quart end contracts for a further 2.7 of produ have be agreed for delivery later in combination of existing and new c n g contracting parties. 2013 to a c
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r rter, works continued on the deve o elopment of Atlas port facilities f During the December 2012 Quar dland. The Utah Point Yard 2 exp e t pansion will increase the Compan nys export capacity in Port Hed over the re emainder of the financi year, ena f ial abling these facilities to accommo e odate the additional ed tonnage as production increases The work are being carried out in a phase manner with the s n s. ks g bulk earthw works for the initial stag conclude on sched ge ed dule during December 2012. Mt Webbe er The Mt We ebber study continued during the period, focu y using on a staged deve s elopment, in nitially to 3Mtpa of D DSO and th hen expand ding to 6Mt tpa. The project will initially use convention truck p nal haulage, ta argeting firs production in Decem st n mber 2013.
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During the December 2012 Quar Atlas co r rter ompleted 218 drill hole for a tota of 17,765 metres. es al 5 Initially at t Hickma Western Creek and Earaheedy projects; and subseq the an, d y a quently at Wodgina, W Wodgina S South and A Abydos in line with the Companys increased focus on H e d Horizon 1 and near a mine oppo ortunities. Horizon 1 foc cussed drillling accounted for 45% of the tota drilling du % al uring the quarter. D During the D December 2012 Quarte Atlas incu er urred $4.2M on explora ation and ev valuation (expensed), $3.6M o resource developm on ment (capit talised), an $4.2M o studies ($4.0M nd on capitalised d). In the Mar 2013 Q rch Quarter the focus on th North Pi he ilbara will continue on ce drilling activities c a recommen on 1 Ma nce arch 2013, with RC dri lling planne in close proximity to current op w ed p o perations at Wodgina and Pardo as well as greenfie a oo, elds exploration at Coru unna Downs s.
CORPORATE
During the December 2012 Qua e arter, and f following a review of its product tion plan an other nd productivity initiatives Atlas prov y s, vided a rev vised shipping guidanc of 7.2Mt to 7.7Mt in FY13. ce t i ce Atlas also lowered its operating cost guidanc for FY20 to A$46 c 013 6-$50 a tonn ne. A wide ran nging cost r review initia ated by Atla conclude that cert as ed tain long-te erm exploration and evaluation activity cou be defe uld erred with re esource/res serve develo opment a h higher priority in the short to me edium term to deliver the Compan t nys medium term mining plans. T review resulted m The in a reduct tion of appr roximately 27 full time positions across Atlas business with the ma 2 a s ajority of these posit tions attribu utable to exploration an evaluatio activities. nd on Horizon 1 funding pu in place ut On 10 De ecember 20 012, Atlas completed a USD$325M financ cing packag ensurin Atlas ge, ng remains fir rmly on trac to meet its Pilbara iron ore pr ck roduction ta arget of 12M Mtpa by De ecember 2013. age, compr rising of a US institutiional Term Loan B of ffering to U USD$275M and an The packa undrawn A AUD$50M t three-year covenant light revol lving facility will be u y, used to fun Atlas nd Horizon 1 strategy inc cluding its Abydos min developm A ne ment, Yard 2 expansio at Utah Point, Mt on P Webber mine develop pment and associated infrastructure. a Trigg Hill e er uarter, Atlas acquired from Gond s dwana Res sources Lim mited its During the Decembe 2012 Qu interest in exploration licence E45/3437 (refe ferred to as Trigg Hill) located in th Pilbara, Western he Australia fo $1.3M in cash. The Trigg Hill Tenement is in close proximity to Atlas Mt Webber or n e o prospect a will host key infrast and t tructure for the develop pment of tha project. at Centaurus Metals Li s imited Atlas holds a 19.85% strategic in s nterest in C Centaurus Metals Limited, an eme M erging Brazilian iron ore explore and deve er eloper (see Centaurus website: www.centaur w rus.com.au for further details). Shaw Rive Mangane Limited er ese Atlas hold a 53.4% strategic interest in Shaw River, a manganese exploration and ds % e developme company (see Shaw Rivers w ent w website: www w.shawriver.com.au fo further de or etails).
Pa 5 of 9 age
Successful commence ement of pr roduction fro the Kara Magnet Project ( om ara tite (Gindalbie Metals GBG: 50% has increased intere in the Ri dley Projec which has the size a location to be a %) est ct, and n significant source of lo term, high quality iiron ore sup ong pply. d ment Plan Dividend & Dividend Reinvestm Following approval of amendme f ents to its C Constitution at the 2012 Annual G General Me eeting on 31 October 2012 (201 AGM), Atlas declare an unfran 12 A ed nked divide of 3 cen per shar for the end nts re 2012 financial year (F 2012). FY ers ected to par rticipate in t Dividend Reinvestm the d ment Plan w which was activated a Shareholde who ele for the FY Y2012 Dividend, receiv Atlas sh ved hares at an issue pric of $1.36 per share, a 2.5% n ce discount to the daily V o VWAP (volu ume weighte average price) for th previous five busine days ed he s ess immediately after the record date of 22 Nove e ember 2012 2. A total of 4 4,912,416 s shares were placed pu e ursuant to th Atlas Div he vidend Rein nvestment Plan and P $20M was paid in cas dividend. sh
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Table A: Mine Production Pa ardoo De ecember 20 012 Quarter (t) Ore Tonn Mined1 nes Ore Tonn Process nes sed Haulage t Port to Table B: Mine Production Wodgina W De ecember 20 012 Quarter (t) Ore Tonn Mined1 nes Ore Tonn Process nes sed Haulage t Port to 1,472,871 1,394,043 1,443,296 Sep ptember 2012 Quarter (t) 1,219,364 1,316,873 1,322,065 Vari ance arter Qua ( (t) 253 3,507 77, ,170 121 ,231 Variance Quarter Q (%) 21% 6% 9% 341,837 347,171 373,548 Sep ptember 2012 Quarter (t) 324,535 325,838 345,222 Vari ance arter Qua ( (t) 17, ,302 21, ,333 28, ,326 Variance Quarter Q (%) 5% 7% 8%
Note 1: Ore To onnes Mined represents ore tonnes delivered t Run-of-Mine (ROM) at the Plant. to P
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