The tenements would have existed on the balance sheet as non-current exploration and evaluation assets, the deal would have involved a partial transfer from this non-current account to cash and the remainder would be a gain on sale. At FY17 the entire SDV asset was listed at around AUD 116 million in the financials, we will have to wait and see how the asset is apportioned in line with the deal. The interesting thing is how they can continue to keep SDV on the books at such a low book value when they sold half of it for more than the entire asset is held. I am thinking they will need to not only bring the additional cash from the sale into the books but also revalue the remainder of the asset closer to fair value. This should mean on the books there should be a sizable increase in non-recurrent income from both gain on sale and revaluation of assets
