The Investment Doctor
Long/short equity, value, debt, base metals

Atlas Iron - Can The Economies Of Scale Compensate For The Lower Grade?

Introduction

In this article I'll try to determine whether or not Atlas Iron (OTC:ATLGF) could be an interesting investment right now, as the company will reach its sweet spot production rate relatively soon now. Atlas Iron is producing (lower quality) iron ore in Australia, and I will discuss how the price setting of lower quality iron ore works and what the impact is on Atlas Iron's operations and expected profitability.

(click to enlarge)

Source: company presentation

As this is an Australian company, the volume on the US exchanges is quite illiquid, so I'd strongly recommend you to trade in Atlas Iron through the facilities of the Australian Stock Exchange, where the company is listed with AGO as its...

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