With the assistance of McAleese and other contractors, Atlas announced on Friday that it would restart mining at the Abydos and Wodgina mines.

McAleese said today the companies were working to finalise commercial terms, which include a lower base haulage rate with profit sharing dependent on the Australian dollar iron ore price.

Atlas expects to be cashflow positive this month, based on targeted all-in costs plus interest and sustaining capital that are breakeven at a headline IODEX 62% CFR level of less than $US50 per dry metric tonne.

McAleese said discussions continued over the potential restart of Atlas’ Mt Webber mine.

Due to the revised contract arrangements with Atlas, McAleese has downgraded its full-year guidance.

Trading earnings before interest, tax, depreciation and amortisation for the 2015 financial year are now expected to be around $A70 million, down from an earlier estimate of $85-90 million.

Net debt is forecast to be $160-165 million, including anticipated sales of non-core assets of around $10 million before the end of June.

McAleese had previously tipped net debt to drop to $145-150 million by the end of FY15.

The company said it remained in compliance with all financial undertakings and expected to be compliant at June 30.

Based on low levels of activity and fewer capital projects in Australia, McAleese expects a non-cash impairment of its Heavy Haulage & Lifting division.

Due to the resources downturn, a non-cash impairment of goodwill in the Bulk Haulage division is also expected.

In parallel to the discussions with Atlas, 333 Group has been appointed to provide an independent review of McAleese’s financial performance, including debt reduction, profitability improvement and strategic options.

McAleese is a shareholder in Heavy Haulage Australia, which is in discussions for a financial and operating restructure.

Ferrier Hodgson has been appointed to review HHA’s activities and McAleese is reviewing the $4 million worth of loans advanced to the company this year and has flagged a non-cash impairment.

Shares in McAleese plummeted 43% to 9c.