CCR warns of impairment costs
PERTH (miningweekly.com) – Silver miner Cobar Consolidated Resources has warned shareholders of an asset impairment of between A$28-million and A$33-million on its Wonawinta silver mine.
The company said on Monday that the write-down was in response to the recent fall in silver prices.
At the end of June, the silver price was some $19/oz, which was lower than previously forecast.
Furthermore, the write-down was also attributed to the higher asset value as a result of capitalisation of net operating costs during the longer-than-planned commissioning phase of Wonawinta.
The Wonawinta project poured its first silver in July last year, and has a 51-million ounce indicated and inferred resource and a 14-million-ounce probable reserve. The project would likely produce some 12.8-million ounces of silver a year, over a five-year project life.
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