Newcrest expands on impairment charges
PERTH (miningweekly.com) – Australian gold miner Newcrest on Friday gave further details to its expected impairment charges and write-downs for the 2013 financial year.
At the start of June, the ASX- and TSX-listed Newcrest announced that a strategic review had identified a possible impairment of up to A$6-billion on the carrying value of the company’s assets, owing to the decrease in the gold price.
The miner said on Friday that further assessment to the carrying value of the assets had resulted in a total impairment on the four producing assets, which include the Lihir and Telfer mines, of A$5.5-billion.
In addition, the Newcrest board had also written down some A$273-million on the value of its 32.63% shareholding in fellow gold miner Evolution Mining.
Furthermore, other assets across the group were also expected to be written down at the year end by some A$360-million, after tax, with the write-down including fixed assets, inventory, exploration and the de-recognition of previous tax losses.
The total estimated amount of the write-downs and impairments amounted to some A$6.2-billion after tax.
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