Atlas Iron made a statement to the ASX yesterday, but not concerning any possible deal for its Ridley project in Western Australia.
The company said Monday that it expected to make a decision by today. Its shares remain suspended.
But the company yesterday reported a rise in first half revenue and a smaller loss as it continues to develop its second mine.
Net loss for the six months to December last year was $24.4 million, down from $42.2 million for the previous corresponding period.
Revenue jumped to $41.7 million, from $3.5 million previously, as it increased production at its flagship Pardoo mine in WA’s Pilbara region.
Atlas said it shipped 1.08 million tonnes of the of iron ore to steel makers in China between December 2008, when production commenced, and December last year.
It said in late January it was on target to ramp-up production at Pardoo to 2.4 million tonnes per annum by the middle of this year.
The mid-tier iron ore producer has also started constructing its Wodgina mine, also in the Pilbara, with production slated to commence in April/May.
The company expects to export at a rate of 6 million tonnes a year by the end of this year.
Mine development costs for the first half were $38.9 million, up from $25.4 million previously.
Atlas said the loss includes a charge of some $9,559,382 (half-year ended 31 December 2008 was $31,528,726) "for exploration and evaluation expenses which were written off as incurred in accordance with the Group’s accounting policy.
"The exploration and evaluation costs include discovery costs at the Wodgina and Mt Webber areas and progression of feasibility studies, all of which will be key components of the Group?s future growth.
"In July 2009 the Atlas Board sanctioned development of the Wodgina project so all resource development and engineering work completed after project sanction has been capitalised.
"Other significant items included in the net loss included a gain of $8,037,443 from exercise of a back-in right at Mt Webber by Altura Mining Ltd and the accounting impact on the acquisition of Warwick Resources Ltd.
"The key Warwick related items are a gain of $10,659,550 arising from revaluation of Atlas? existing investment in Atlas to the acquisition price, transaction charges of $5,066,201 and the write-off of goodwill associated with the transaction of $18,330,116.
"In addition to the activities outlined above the company successfully raised $46,620,000 pursuant to Tranche 2 Share Placement and an additional $14,878,894 pursuant to Share Purchase Plan to ensure it was well funded to execute the next phase of its expansions," Atlas said.
India’s Economic Times reported on Monday that the country’s state-run miner NMDC, Saudi Arabia’s ABS Consulting and Australia’s Boulder Steel had submitted a $US230 million ($A253 million) non-binding bid to buy 70% of Atlas’ Ridley project or in the operating Pardoo mine.
It also said a Chinese firm was understood to be a rival bidder.
Meanwhile Explorer Noble Mineral Resources has increased its estimated resource at its Bibiani gold mine in West Africa.
Shares in the company jumped 24% yesterday from Friday when it entered a trading halt.
They ended up 20%, or 6c, at 35 cents yesterday.
The company said yesterday the measured, indicated and inferred mineral resource at the project, in the West African nation of Ghana, was 32.98 million tonnes at an average grade of 1.87 grams per tonne.
That’s around 1.98 million ounces.
The new resource figure is a 22% increase on earlier estimates released by the company.
The Bibiani mine, acquired by Noble last year, includes a processing plant with an annual capacity of 2.7 million tonnes and a significant mining fleet in good working order, Noble said at the time.
Noble managing director Wayne Norris said the increase in the resource provided a very strong foundation for the planned re-establishment of profitable mining and processing at Bibiani.
And building products supplier GWA International will pay $50 million for Brivis Climate Systems in a deal with Carrier Air Conditioning Pty Ltd.
GWA said Brivis, which is based in Braeside, Victoria, supplied ducted climate systems for the residential market.
The transaction is subject to conditions which GWA said should be satisfied by the end of this month.
GWA managing director Peter Crowley said GWA would integrate Brivis with GWA’s Dux water heating business to form GWA Heating and Cooling.
"The establishment of GWA Heating and Cooling will create a substantial business with revenue expected to exceed $200 million per annum," Mr Crowley said in a statement.
"The new division will meet our investment criteria of being EPS (earnings per share) positive in the first year and achieving a return on funds employed of 17 per cent within three years."
Shares in GWA rose 9c, or 2.8%, to $3.32, after falling in the wake of the announcement.
