Artlas Iron Limited (ASX:AGO) has suspended the trading of its shares on Tuesday after it announced it would be launching a comprehensive review of its troubled iron assets. The company said it would need to seriously review its finances after its attempt to stay financially viable by reducing costs failed to match the “extent and pace” of the iron ore plummet. Iron ore sunk again in the last trading session, falling below the $US47 per tonne mark to $46.70 per tonne. Iron ore prices have fallen over 10 per cent in the last week and have now hit record lows ever since the Steel Index officially started tracking prices in 2008. Since reaching a peak of almost $US200 per tonne in 2011, iron ore prices have fallen over 75 per cent.
Atlas previously attempted to manage the troubling iron ore climate by cutting jobs. The company had $169m in cash at the end of last year. However, the company drew $338.5m in debt, most of which is due for repayment in 2017. In a recent announcement to the ASX, Atlas said that further steps would need to be taken to assure future stability, including the possibility of selling iron ore assets. “Should these key assumptions, which underpin the cash flow forecasts, not be achieved, the group may be required to source additional funds through debt or equity markets or a selldown of assets,” the company said. Shares of Atlas have been struggling amid falling commodity prices. AGO is down over 87 per cent in the last 12 months and is down 27.27 per cent so far this year.