Atlas Iron set new haulage and processing records in the June quarter and is gaining exposure to the large Brazilian iron ore market by becoming the biggest shareholder in Centaurus Metals.
The Pilbara-focused iron ore miner hauled a record 1.515 million tonnes (Mt) to Port Hedland in Western Australia in the three months to June.
It also processed a record 598,880 tonnes in the month of April.
Total shipments for the June quarter amounted to 1.465 Mt, up from 1.39 Mt in the March quarter.
Cashed-up Atlas said it was on target to continue to ship at a rate of about 1.5 Mt in the September quarter.
Under the Centaurus deal, Atlas will pay $18.7 million for a 19.9 per cent stake in the iron ore explorer at a price of 8.8 cents per share.
Centaurus shares soared 31.25 per cent to close up 2.5 cents at 10.5 cents, while Atlas shares finished down 16 cents, or 3.81 per cent, at $4.04.
The acquisition will give Atlas exposure to the Brazilian market where Centaurus is set to start producing iron ore and selling it to steel makers.
The planned deal is the latest in a string of transactions by Atlas. In June, Atlas and the smaller FerrAus agreed to a friendly takeover to create a $3 billion Pilbara iron ore miner, producing nearly one billion tonnes of direct shipping ore.
If the Centaurus deal is approved by shareholders, it will strengthen Centaurus’ cash resources to more than $25 million, enabling it to accelerate development of its iron ore projects in southeastern Brazil.
Atlas took over fellow iron ore miner Giralia Resources NL earlier this year and has also flagged branching into manganese.
Atlas, which is one of only two firms to have negotiated infrastructure use deals with Fortescue, recently turned its first profit and was added to the S&P/ASX 100 index last year.
Having Atlas as a major shareholder positioned Centaurus for its transition to an iron ore producer, Centaurus managing director Darren Gordon said.
“We hope to replicate the sort of growth and success that Atlas has been able to achieve,” he said.
AAP
