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I am reading the Key Assumptions on Page 41: 2014 POG US$1,300,...

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  1. 1,388 Posts.
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    I am reading the Key Assumptions on Page 41:
    2014 POG US$1,300, Probable reserves 820,000, Production capacity for next 5 years 120k.
    2015 POG US$1,200, Probable reserves 590,000, Production capacity for next 5 years 135-150k.
    And these changes are leading to the impairment charge. To me if they mine quicker because of increased capacity that's a good thing.

    Indeed on page 42 they give a sensitivity analysis of the impairment charges:
    Column 1 Column 2
    0 Assumption change Effect on Impairment of Co-O CGU $’000
    1 US $100 per ounce change in gold price 54,200
    2 1 percent increase/decrease in the discount rate 4,780
    3 5 percent increase in operating costs 36,700
 
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