Miner Atlas Iron (ASX:AGO) has reported a drop in sales volumes and ore production and an increase in cash costs, which it says is due to ongoing discounts being applied to lower grade iron ore.
The company mined 2.3 million tonnes of ore in the December 2017 quarter, a 24 per cent drop compared to the previous quarter.
The miner shipped 2.2 million tonnes of ore in the December quarter, which was down by 800,000 tonnes from the previous quarter.
The company reports that lithium mining has progressed following an agreement with Pilbara Minerals during the quarter to purchase and export up to 1.5 million tonnes of the metal.
The company’s cash balance stands at $71 million as of December 2017, plus $34 million in reserve, and says it will reduce its $103 million term loan by $20 million in the coming days.
Shares in Atlas Iron (ASX:AGO) are trading 8.06 per cent lower at $0.03.