If you actually read the annual report you will see that they have a carrying value of over $150mil of exploration and development ‘assets’.
anyone with even a basic (very) knowledge will understand that at year end they will need to assess the carrying value by discounting the future value of cash flows. Now that those future cash flows have decreased significantly they will need to impair the assets. Depending on their assumptions it will be anywhere from $30mil to $80mil.
If anyone does not understand this concept they should not be investing.
Also, if future cash flows will not enable repayment of debt well.. even you should know how that goes.
BYE Price at posting:
6.0¢ Sentiment: None Disclosure: Not Held
