ASIC welcomes Resolute's $310m impairment

The Australian Securities and Investments Commission disclosed today it had raised concerns about Resolute Mining’s project valuations, prior to the Perth-based miner's decision to impair its Syama gold mine in Mali by $310 million.

In a statement today, ASIC said the gold miner had conducted its impairment testing to take into account events that occurred in the six months to December, and followed enquires the corporate watchdog had made regarding the Syama mine in Resolute’s June 30 financial report last year.

“ASIC raised a number of concerns with Resolute including the need for valuation cross-checks and the use of announced ore reserves in impairment testing records,” the watchdog said.

(Resolute) has made a number of adjustments to assumptions and a valuation technique which gives rise to an outcome consistent with other information available to Resolute based on tis announced ore reserves.”

Resolute made a $324 million loss after tax for the six months to December, which was due to the impairment charge at its Syama mine, resulting from a lower USD gold price.

The prospect of an impairment was flagged last November, when Resolute announced it would not proceed with a stage 2 open pit cutback.

The company’s share price closed 8.3 per cent lower at 33 cents per share.