PERTH (miningweekly.com) – The share price of ASX-listed miner Gindalbie Metals has continued to decline, as the miner warned of a number of uncertainties that could affect the company’s future as a going concern.

In its annual report released to shareholders this week, Gindalbie noted that its 47% shareholding in the Karara iron-ore joint venture (JV) was essentially worth nil, following a A$592.3-million asset impairment recorded during the year ended June.

The impairment charge related to the lower-than-forecast production levels at Karara, as well as the current capacity restrictions, lower-than-forecast iron-ore prices, and the higher-than-anticipated Australian dollar exchange rate.

The asset write-down compared to an asset value of A$551-million over the 2013 financial year.

For the full year, Gindalbie recorded a net loss of A$585.6-million, compared with a loss of only A$144.3-million last year.

Meanwhile, Gindalbie’s directors have identified uncertainties regarding the potential future funding requirements of the Karara JV. These included the project achieving production quantities and cost profiles to meet its ramp-up schedule, the iron-ore price going forward, the continued financial support of JV partner Ansteel and the Chinese Banking Syndicate, and the ability of the Karara JV to either deliver into the prepaid sale agreements, or to settle or renegotiate these agreements.

The Karara mine has yet to meet its nameplate capacity, and earlier this year, Gindalbie was forced to secure a $300-million loan facility from China Merchant Bank to meet a funding shortfall to bring the project to capacity.

In March this year, Ansteel exercised its right to convert two shareholder loans of A$60-million in total to new shares in Karara Mining Limited, which operates the project, taking its ownership in Karara from 50% to 52.16%.

On Tuesday, Gindalbie’s shares shed 18% to trade at A$0.32 apiece. On Wednesday, the stock dipped to A$0.30, but traded at A$0.32 a share in the afternoon.