SYDNEY, Oct 22 (Reuters) - Atlas Iron's AGO.AX quarterly iron ore output rose by 72 percent from the previous quarter when low ore prices forced it to suspend mining and scramble for funding to stay afloat.
Australia's fourth-biggest iron ore miner that came to symbolise the sector's dramatic boom-to-bust plight said it shipped 3.3 million tonnes of ore in the last quarter and hit its annual production target of 14-15 million tonnes four months ahead of schedule.
Managing Director David Flanagan said the faster production ramp-up helped better the company's total cash costs - an indicator of profit or loss - to A$58 million ($42) per wet metric tonne in the September 2015 quarter, down from A$66 the previous quarter.
"By maintaining higher production rates and continuing to cut costs we will strengthen Atlas' options for restructuring the balance sheet," he said in releasing production data.
Weakening of the Australian dollar and profit-sharing concessions with its service contractors also assisted in boosting Atlas' average sales price by A$6 to A$61 over the period, according to Flanagan.
Atlas suspended mining when iron ore fell to $47 a tonne, meaning it was losing $15 on each tonne.
The company could again find itself underwater if some analysts' price projections are correct.
Citi commodities specialist Ivan Szpakowski forecasts renewed deterioration in iron ore prices next year to all-time lows as Chinese steel production drops off.
"We think it will move down to around $50 (a tonne) by the end of this quarter and see a more significant shake out in 2016," he said. "Most likely in the late first quarter we expect prices to fall to $40 or below that."
Iron ore bottomed out at $44.10 a tonne in April, the lowest on record since tracking of the spot price commenced in December 2008, according to Reuters data. It stood at $51.90 (A$72.13) <.IO62-CNI=SI > on Thursday. ($1 = 1.3897 Australian dollars)