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Ramelius warns of impairment charge at Edna May

22nd August 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold miner Ramelius Resources has warned of a A$90-million to A$95-million non-cash impairment of its Edna May asset, in Western Australia.

The company said on Monday that the prevailing environment for input costs which had been experienced throughout the mining industry, coupled with lower than modelled ore grades at Tampia, resulted in a full year impairment testing being completed in relation to the recoverable value of Edna May.

Ramelius noted that the cashflow modelling for Edna May did not include the Stage 3 cutback, as project studies were still under way and a final investment decision had been held over until later this calendar year.

As a result of the non-cash impairment charge, as well as a non-cash write-off on exploration and other minor assets of between A$18-million and A$20-million, and a gain on sale of lithium royalties of some A$30.3-million, Ramelius is targeting an underlying net profit after tax of A$105-million to A$110-million for the full year, and a statutory net profit before tax of between A$20-million and A$25-million.

The company’s financial results for the full year are expected on August 29.

Edited by Creamer Media Reporter

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