Transport and logistics contractors measure Atlas Iron impact


McAleese suspends shares pending review as Qube looks for Utah Point options

Transport and logistics contractors measure Atlas Iron impact
McAleese has sought suspension of shares.

 

Qube and McAleese have acknowledged the impact of miner Atlas Iron’s suspension of operations on their businesses.

Atlas is in a transition period due to finish at the end of the month, when it will place its mines into care and maintenance "pending future iron ore market conditions".

"Atlas is now in discussions with its creditors concerning options which would enable the company’s mines to re-start as efficiently as possible in a circumstance where an operating margin can be re-established, whether through further cost reduction where possible and/or improvements in the iron ore price," it says.

The miner’s Friday announcement has put pressure on listed companies it has contracts with to explain their financial positions in light of the move and ensuing uncertainty around its next move.

Logistics firm Qube says the development is not expected to have a material financial impact on its underlying earnings in the current financial year.

"Qube’s diversification strategy by customer and product continues to mitigate Qube’s risks against such developments," the company says.

"No customer, including Atlas Iron, represents more than 5 per cent of Qube’s revenues.

"During the financial year to date, Qube handled approximately 16 million tonnes out of the multi-user facility at Utah Point.

"Atlas Iron volumes represented approximately 64 per cent of this volume and Atlas Iron has fully met its minimum volume requirements under the take or pay arrangements with Qube."

Qube adds it will work with Atlas, existing customers and potential new customers to maximise the use of Utah Point.

Heavy haulage firm McAleese has now sought a 10-day voluntary suspension in its share trades as it undertakes a review as it "considers and reviews the operational and financial implications and various commercial scenarios that could eventuate".

McAleese issued a statement last Tuesday noting Atlas Iron’s own share suspension but that was before the miner’s plans were released.

McAleese intends to make no further comments until the review is complete.

 

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