PERTH (miningweekly.com) – Coal developer Guildford Coal on Tuesday warned of a possible noncash impairment charge of between A$40-million and A$50-million on the carrying value of its noncurrent Australian assets.
The ASX-listed junior said that it had conducted a preliminary review of these assets following an unsolicited and nonbinding offer for these assets from Sino Construction.
In August, Guildford reached an agreement with Singapore-listed Sino Construction to divest of its Queensland coal assets in a deal worth $25-million. The assets would include the Clyde Park project, as well as the Pentland, Springsure, Hughenden Sunrise, Monto, Sierra and Kolan projects.
Under the terms of the agreement, Guildford would be appointed as sole manager of the coal assets, and would have the first and last right to be appointed as the contract miner for each asset, as they moved into production.
A management fee would be payable to Guildford, along with a royalty payment equal to 35c/t of coal sold.
The junior developer said on Tuesday that the review over its Australian assets was continuing, and would be completed in conjunction with the company’s yearly financial statement.