Atlas Iron is still alive and still mining.
The Pilbara iron ore producer has announced a surprise reversal of last month's decision to shut down and will keep two of its three mines operating.
The 60 per cent-plus fall in the price of iron ore in the last year put Atlas in a position where it was losing money, leading to the shutdown and a trading halt in its shares, which is still in place.
More than 86 per cent of its share price value, or $700 million, has been wiped out in 12 months.
Friday's turnaround comes after a deal Atlas struck with its major service contractors that it said would substantially reduce its forecast cash costs for this month.
It did not reveal the details but it likely involves reduced or foregone payments to keep Atlas - and possibly themselves given their dependence on work from the miner - afloat.
Mining contractor BGC, Qube Logistics, MACA Mining, Mineral Resources and transport group McAleese are among those involved, with some of them involved in talks with Atlas's creditors in the US that are ongoing.
"The new operating model, inclusive of lump product streams and assistance provided by key service providers, combined with positive pricing momentum, means Atlas expects to be cashflow positive in May," Atlas said in a statement.
It said it was producing higher priced lump product out of the Abydos mine.
It also plans to reopen its Wodgina mine this month and expects to be cash flow positive in May.
Mt Webber remains closed.
Atlas burned through cash during the March quarter, posting $21.3 million negative cash flow.
The iron ore price plunged to below $US50 a tonne during that time, but there are positive signals with a recovery to nearly $US60 and Brazilian mining giant Vale flagging possibly reducing some output.
Resources analyst Peter Strachan said the dynamics still did not look good, with the market over-supplied until some Chinese miners start failing and Atlas's iron ore higher cost and lower quality.
The company's contractors had little choice: help Atlas out or collapse themselves and sack their workers.
"The contractors have invested so much time and effort into building a skill base and equipment and don't really want to let it go," he told AAP.
"When you make people redundant then you have got redundancy costs and then in 18 months if things turn up you have to scramble around, re-employ people and re-train them."
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