Ann: Full Year Statutory Accounts, page-41

Hi DJM,

I can assure you that the impairment can/will be reversed if Kolosori is returned, assuming that the impairment does not pertain to goodwill (http://www.iasplus.com/en/standards/ias/ias36). I don't believe it does, as goodwill cannot be internally generated and must come from an excess paid on a transaction to the fair value of identifiable net assets acquired, which to the best of my somewhat limited knowledge of the company's history, does not apply in this situation.
If the impairment pertains to real assets which I believe it does, Axiom uses a mixture of the revaluation/cost methods of accounting for non-current assets (Note 4(d)). Without going into too much boring detail, both methods require the comparison of the asset's book value with the fair value/value in use, which are both fundamentally based on probable expected cash flows (as selling prices are not as relevant for mining assets) that cannot reliably be claimed if Axiom does not have the prospecting rights to the land. Note that "probable" is determined by the auditor, not management, assuming that they want to obtain an unqualified opinion.
So I think the likely turn of events is that they would have been made to impair these assets by the auditors so as to not get a qualified opinion that would've caused much more damage on the market than we've seen today (yesterday now, I should get some sleep...)
So in my opinion this impairment, in itself, is not reason to panic as people seem to be doing.
I'm not saying that the report is all positive but I don't think it was far from what would've otherwise been expected had the impairment not occurred. I do have some professional knowledge in this field so hopefully it puts some minds at ease, if only I'd used that knowledge a little better in the past to get in at a lower price/sell out earlier....