Atlantic managing director Michael Minosora yesterday conceded delays and cost overruns at the Windimurra vanadium project were "disappointing" as investors approved the $25 million capital raising it needs to get back on schedule. But speaking on the sidelines of Atlantic's shareholder meeting in Perth, Mr Minosora was clearly keeping the faith that the project's hiccups were behind it, saying the focus was on ramping Windimurra up to 65% of production capacity in the second quarter of this year. Windimurra, 80km south-east of Mt Magnet is about two months behind schedule. "It will take us ahead of schedule if we get that, so it's ahead of what was in the memorandum of understanding for the bonds and ahead of where you would normally be in the process of ramp-up schedule" Mr Minosora said. "We know the issues more clearly now, having brought everthing on, so that's a really big benefit". "While it's been disappointing to the management team and obviously the market, having a clear understanding of what we need to do to get back to where we should be just gives us so much good quality information-not theoretical information but real information which you can make decisions on and that's exactly what we're doing" Atlantic originally targeted first ferrovanadium in the september quater, with a $77.7 million construction budget, plus a 19.4 million contingency fund. However,in december the group announced a $25 million capital raising at $1.20 a share to cover delays, with first production ultimately pushed back to this month. Windimuura's colourful past - cost overruns sent it's last owner into administration when the project was 85% finished - means Atlantic has, at times, faced a tough task convincing the market it can deliver on it's plans. The group's shares are off 31% in the past three months versus a 1.5% drop on the market's key S&P ASX 200 index. They closed 1 cent weaker at $1.10. All resolutions at yesterday's meeting, including a $5.4 million placement to Mr Minosoa, were passed overwhelmingly.
ATI Price at posting:
$1.10 Sentiment: LT Buy Disclosure: Held
