At­las’ world col­lapses on its shoul­ders

Townsville Bulletin - - NEWS -

YESTERDAY was a hor­ror first day back to the trad­ing room for At­las Iron as the Pil­bara miner’s share price plunged by more than 70 per cent.

At­las’ shares were re­duced to 3.6¢ by end of trade, a mas­sive fall from the 12¢ it had been trad­ing at in April, and a sliver of the 71¢ they were worth this time last year.

“Com­ing back online ( yesterday) meant that ev­ery share­holder that was wait­ing for them to come back chose to make a mas­sive loss and get out,” said IG mar­kets strate­gist Evan Lu­cas.

Strong- arm tac­tics from the big min­ers and fall­ing Chi­nese de­mand had squeezed the pure player’s profit mar­gins to death, Mr Lu­cas said.

In April, At­las was forced to sus­pend oper­a­tions at its three mines and call a trad­ing halt fol­low­ing the col­lapse of the iron ore price, which roughly halved to around $ 50 a tonne in the past year.

The rush by in­vestors to get out also fol­lows a dis­ap­point­ing cap­i­tal rais­ing, which only brought in $ 87 mil­lion of the hoped for $ 180 mil­lion tar­get.

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