Ann: Non-Cash Impairment , page-5

My understanding is they are writing the values down of the tenements they purchased as they purchased them by takeover when the share prices was much higher than now. Meaning the $ value they paid is a lot more than they are probably worth now.

It's non-cash so not "real" and I'd say by reducing their values it does help in the accounting sense if iron ore prices drop (as cost would be lower due to values being written down.) So that seems a good thing.

So very much an accounting entry and not so much a loss from operational mining which not be a good thing.

Still probably not the greatest news but as you mentioned, the last paragraph is pretty confident and its the cash flowing in now that really matters.

I could be wrong on above. Just how I read it. Any accounting experts out there??