Ann: GRR - Quarterly Report for 3 months ended 30 June 2015, page-194

MR.

As per note 24. from the discounted NPV analysis of future cashflows, the assumption for future io prices was wiped by $15/20dmt over the LOMP.

The Stripping "Asset" is formulated as SA = capitalised expense - capitalised expense/LOMP. It's suppose to smooth out the expense profile (and hence the profit and loss statement), ie. average out the stripping expense over the life of mine... and you do that because the actual stripping expense is lumpy and high between transitional periods between stages of the pit outline, and low during the mining period.

You write off your stripping asset when under your current assumption for recoverable NPV is below the amount that has been expensed to date. eg. If you've capitalised an $80 million expense to date on stripping waste from the orebody, and your LOM is for 4 years and in that time you expect to make $40 million cash from the operation... then you will write off the difference.

So to answer your question of what was written off...

$15-$20/dmt was written off from our future expectations of the iron ore price...
-this then led to a $73 million writeoff in the SA, a $57 million writeoff in the carrying value of the mine property & development and a further $32 million writeoff in the carry value of property, plant & equipment and computers...

-in other words, ~$160 million of prior and current year cash expenditure went poof.
-in other words, we aren't the owners of a company worth $535 million (as believed at the start of the year), but rather a company worth $444 million that grew ~$30 million in the last 6 months.