News: Silver Lake Resources completes review of non-current assets

Silver Lake Resources (ASX:SLR) has substantially completed its review of non-current assets as at 30 June 2014 and expects to record a non-cash impairment of $48 million.

This is in addition to the $42 million of impairments reported at 31 December 2013 against the Murchison Gold Operations, which has been placed on care and maintenance.

The impairments at 30 June 2014 are due to a number of factors including assessment of exploration and development assets at Mount Monger and the decision to place the Lakewood processing facility on care and maintenance.

In particular, the Cock-eyed Bob and Maxwells underground deposits, which are currently under evaluation, have been assessed as long term development assets until firm plans to develop the mines are finalised.   

The review is subject to the normal finalisation of the year-end audit process, which is expected to be completed and announced to the ASX by 29 August 2014.

The impairment charges are non-cash and do not impact the Group’s cash position or operations.

In addition, it has been decided to de-recognise deferred tax assets – relating primarily to prior year tax losses – of $53 million.

This does not impact on the Company’s ability to utilise these tax losses in future financial periods.

“With the Murchison Gold Operations on care and maintenance, the company is focused on the Mount Monger Operations which recorded another strong annual result of $58 million EBITDA in FY2014,” managing director Les Davis said.

Mount Monger had reported gold sales of 172,838 ounces in the 2014 financial year, exceeding guidance of 160,000 to 170,000 ounces.

The company had also last month acquired the remaining 15% interest in the Mount Monger joint venture from Newcrest Mining (ASX:NCM) for $1.52 million.