Melbourne - Atlas Iron Ltd slid to the lowest on record in Sydney after the iron producer’s share sale raised about half its target.
Perth-based Atlas fell 70 percent in Sydney to close at 3.6 cents, the lowest since listing in December 2004, after being suspended since April 2. It raised A$86 million ($63 million) in the sale that had been seeking A$180 million, offering shares at 5 cents each. They had last traded April 2 at 12 cents.
Iron ore, which fell this month to the lowest in at least six years, is poised to decline as the biggest exporters continue to expand output, pressuring prices and squeezing margins for higher-cost competitors, including Atlas. Citigroup forecasts prices may fall below $40 a metric ton this half.
Atlas, which suspended its shares from trading in April as it reviewed its operations, may need to place mines back into care and maintenance if prices hold below $40, Managing Director David Flanagan said in a July 9 interview.
Bloomberg