write-offs not such a negative

More commentators are suggesting another big negative is just around the corner for gold stocks in the form of write-offs.

After the pounding they've suffered why would directors not adopt a conservative "clear the decks" approach ?. Why is it such a big negative ?

It would be a non-cash event which would reduce apparent total costs going forward. i.e. by reducing the Amortisation to zero in relation to the assets written off. Total costs being cash costs plus Depreciation & Amortisation.

Therefore it would have no impact on cash flow - which is what dividends are paid from. If SLR intends to pay a dividend - then it has no impact on that intention.

Some may contend that in SLR's case it could be an admission that IGR may not have been a bargain, but that's history. In the meantime why saddle costs well into the future with Amortisation when not only has the asset been paid for but the market appears to ascribe no value to it.