Iron ore exploration company Centaurus Metals says its priority is on developing its flagship Jambreiro iron ore project in Brazil after writing down the value of its non-core Brazilian assets by more than $15 million.
Centaurus announced today it had recorded a net loss after tax of $25.4 million for the half year ended 30 June 2013.
The largest contributor to the loss was a $15.3 million impairment of exploration and evaluation losses at its Brazilian projects.
Chief financial officer John Westdorp said the non-cash impairment arose in a recent review of its iron ore projects and were also a result of Centaurus Metals, previously named Glengarry Resources, taking over Centaurus Resources three years ago.
“The non-cash impairment charge follows a review of carrying values of the non-core Itambe and Passabem iron ore projects,” Mr Westdorp said.
“The carrying values predominantly consisted of the allocation of goodwill following the takeover of Centraurus Resources in 2010.
“The projects were assessed for impairment as a result of the company’s strong focus on the development of the Jambreiro iron ore project.”
The second major component of Centaurus Metals’s half year loss was its $7.6 million loss in exploration operations.
It is developing its Jambreiro project and has received environmental approvals and started preliminary site works.
It is also exploring at its Canavial and Candonga iron ore projects.
Centaurus Metals reported a net cash balance of $12.7 million and assets worth $19.7 million.
Shares were at 16 cents following the announcement, down three per cent.