getting worried, page-18

Supersnail,

I have not confirmed anything but simply speculated that if there was a write-down by SLR, it may be related to the $300 fall in the gold price.

The facts as I can glean them:

On further review, it appears that at the time of the IGR takeover, SLR valued the Salt Creek stockpile at $70m. This was more than the IGR book carrying value and entirely a matter for SLR to determine in their own right.

In the subsequent 2013 annual report, SLR write down $30.6m of inventories with specific reference to the adverse change in the gold price affecting the realisable value as the reason for doing so.

It is worth noting that this write down is for the SLR 'group' and consequently includes stockpiles held at Daisy Milano, Wombola and Murchison as well as Salt Creek and Maxwells.

To what proportion each of these respective 'inventories' has been written down is not clear to me from the information in the 2013 SLR annual report.

Further, I have found no mention in any SLR accounts of any inventories being reclassified from low-grade to 'not economic'.

I have found no evidence to support your allegations that Rowan (spelt with a 'w') was complicit in any misclassification of stockpiles, or that anything other than the specifically reported decrease in the gold price was the reason for the SLR group-wide write-off of $30.6m of 'inventories'.

There is no evidence I could find of your allegation that stockpiles do not have the contained gold claimed.

So, the conclusion remains that you should be very careful of making unfounded accusations while be economical with the truth yourself. You are an accountant and should be better able to read the accounts than I am.