mnc : review of operations

Most interesting part of the financial report for mine is the "review of operations".

MNC have recorded tax write-downs of 19.6, 6.7, 1.4 and 3.2 $mill for "inactive" projects. That is approx $31 mill in write downs. In my experience, write downs are usually useful when you are about to make a significant capital gain or profit, as a means of minimising tax.

Does this point to a sale of a significant asset in the next quarter? I expect so.

P.3 of Half yearly Report
REVIEW OF OPERATIONS
Metminco is a dual ASX and AIM listed company with a portfolio of copper, molybdenum and gold projects located
within well-constrained metallogenic belts that occur within the Andean Cordillera of Peru and Chile (Figure 1).
Metminco’s premier project is the 100% owned Los Calatos copper-molybdenum porphyry deposit in southern
Peru. On 12 August 2013 the Company announced the results of further optimisation work which confirmed the
potential of Los Calatos as a long-life (+34 years), low cost (US$1.06/lb after by product credits), mining operation
producing approximately 100,100 tonnes (220mm lbs) of copper in concentrate per annum.
The Company’s other advanced project is the Mollacas copper leach project, located in Region IV, Chile containing
a Measured and Indicated mineral resources of 15.5 million tonnes at a grade of 0.51% CuT (0.2% Cu cut-off).
The current Phase 3 metallurgical testwork, aimed at confirming copper recoveries and assisting with the design of
the plant, is scheduled for completion during the first quarter of 2014. Preliminary results from the metallurgical
testwork are consistent with prior recovery and acid consumption projections, and confirm the potential of Mollacas
to produce an estimated 8,000 tonnes of copper cathode per annum over a life of mine of approximately 7 years.
During the half year ended 30 June 2013, the Company restructured its operations to focus on the Los Calatos and
Mollacas projects, and as such conducted minimal work on its Vallecillo, Loica and Isidro projects. Accordingly the
Company has written down the carrying value of the Vallecillo ($19,915,844) and Loica ($6,789,655) projects, and
written off the Isidro Project ($1,524,153) and its 50% interest in the San Lorenzo joint venture ($3,283,715), which
also forms part of the Isidro Project. A further $155,083 has been written off on other lesser projects.