Atlas Iron Ltd
(ASX:AGO) has reported a boost in cash reserves, underpinned by rapidly increasing production from its West Australian mines.
In an update of its operations in the Pilbara, the miner says cash reserves have risen to $171 million as at 6 January 2011 because of increased exports, reduced costs and strong iron ore pricing. The figure compares with an estimated $108 million in cash reserves on 31 September last year.
Atlas says it is on target to ship around 1.5 million tonnes of ore in the three months to March 31, 2011.
The miner has also responded to speculation and confirmed it is in discussions with Indian miner NDMC concerning Atlas’ Ridley magnetite project, though no agreement has been entered into as yet.
In the year to 30 June 2010, Atlas Iron posted a net loss of $40.85 million.
