Atlas Iron going through good patch

ATLAS Iron says it's going through a good patch thanks to buoyant iron ore prices and a record boost in production.

Chairman David Flanagan says the company is making solid margins as it posts an eight per cent increase in ore shipments in the September quarter.

"We're having a good patch right now but we're ploughing it all back in," Mr Flanagan told ABC radio in Perth.

He revealed that the company was making around $35 to $40 per tonne on its shipments to China.

"If you're one of the majors who can get iron ore into China for $60 or $65 (per tonne) and sell it for $120 you're doing really well," Mr Flanagan said.

"If you're Atlas, you're getting it in to China for $75 and selling it for $110/$115."

In contrast, he said, miners in the gold, nickel and copper sectors were doing it tough.

Atlas shipped 2.4 billion wet tonnes of iron ore in the September quarter, up from 2.2 billion tonnes in the previous three-month period.

It was a 50 per cent increase on the September 2012 quarter.

Unaudited EBITDA was $91 million for the three-month period.

"Strong production from Atlas' existing operations, together with the commissioning and ramp-up of the Abydos mine, resulted in another quarter of record production and shipments," Atlas said in a statement on Thursday.

The Pilbara-focused company added that it was on track to reach its 2014 full year guidance of 9.8 million to 10.3 million tonnes after reporting cash operating costs of $49 to $53 per tonne in the quarter.

Atlas expects strong customer demand for 2014 contracts and less discounting.

Managing director Ken Brinsden said the company was investing $90 million in mine and infrastructure growth projects and $22 million in dividend payments to shareholders.

"The continued strong iron ore price coupled with a focus on cost control and expanded production, has enabled Atlas to maintain gross cash on hand at $378 million," Mr Brinsden said.

Atlas was fully funded to achieve its targeted export rate of 12 million tonnes per annum, he said.

Atlas shares gained one cent to $1.035.

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