Atlas Iron pays down debt

Company News

by Lee Brooks

Atlas Iron Limited (ASX:AGO) says it has paid off A$54 million in debt and is on track to be in a net cash position by the middle of the year.

The iron ore miner says it finished the December quarter with A$134 million cash on hand as a result of strong cash flow.

The increase came after paying down debt and interest and on the back of a rise in the iron price. That was slightly offset by the impact of a lower Aussie dollar on the balance of US denominated debt.

Atlas says it has paid off A$54 million of debt reducing its US term loan debt to A$118 million and is well positioned to continue this into the March quarter.

Atlas Iron made a net loss of $159 million to the end of June 2016.