Western Areas warns of impending write-off
PERTH (miningweekly.com) – Nickel miner Western Areas has flagged an anticipated impairment charge of between A$90-million and A$100-million for the full year to June.
The company told shareholders that the majority of the impairment charge related to historical exploration expenditure over the company’s tenement package, and a write-down of the undeveloped Diggers South project, which would require higher average nickel prices to deliver positive returns.
“While no company wants to recognize impairment charges to their assets, we believe at a time when the nickel price is trading at a cyclical four-year low, it is appropriate to review carrying values,” said MD Dan Lougher.
He noted that from a funding perspective, there was no impact on the convertible bonds or on the fully undrawn finance facility of A$125-million from ANZ Bank.
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