So, you need money to do this kind of shennanigans. Now, whose equipment are they selling? The mining contractor's? They don't own any equipment, in case you missed the whole idea of contractor mining.
The D&A on Atlas' books is depreciation of assets. The assets are capital expenses. The capital expenses which get booked into assets in mines are things like, viz. haul roads. ROM pads. Open pits, digging waste off the top of ore. Holes in the ground.
The reason these are amortised is that, in case I actually have to point this out, you cannot move an open pit and a haul road. You also can not buy a new open pit to replace the open pit you just dug, by taking your open pit from Wodgina and moving it to Corunna Downs.
Thus, D&A. The reason there's so much D&A is because the pits and holes and roads which have been built are useless once, viz., the pit is completed, or the pit becomes unviable because there isn't enough iron there to justify digging it up and shipping it off.
The billion dollar loss AGO suffered last year was a write off in the asset value of Ridley. This was mostly trumped up figures based on a specious idea of it being valuable. When it wasn't valuable, all the millions sunk into drilling holes into it and doing assays, became worthless. Ie, a loss.
Are you suggesting that AGO can take all the drill holes, DTR results, metallurgy and PFS studies done on Ridley and just buy new ones and write it off on tax, rendering D&A meaningless?
Good luck buying 1.7c AGO shares with such a grasp of accounting, matey.
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