22/02/2017 - 11:34

Doray flags $45m impairment

22/02/2017 - 11:34

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Gold miner Doray Minerals says it expects to report a $40 million-$45 million impairment charge against its Andy Well and Deflector gold mines, with the former operation also expected to deliver an operational loss for the financial year.

Doray flags $45m impairment
Doray expects to report an impairment charge against its Deflector gold mine.

Gold miner Doray Minerals says it expects to report a $40 million-$45 million impairment charge against its Andy Well and Deflector gold mines, with the former operation also expected to deliver an operational loss for the financial year.

Perth-based Doray said today an impairment of up to $22.5 million was expected at Andy Well for the six months to December, on the back of reduced production levels and mine life.

It also expects to report increased unit costs at the mine for the March quarter, and an operating loss for FY17.

“The company has undertaken several significant cost saving initiatives in the March quarter and is extremely focused on reducing the cost base going forward at Andy Well,” Doray said.

“It will take time for these benefits to be realised.”

Doray also raised the likelihood of a $22.5 million impairment at its Deflector mine, due to the rationalisation of the mine development asset as part of the company’s takeover of Mutiny Gold (which previously owned the mine).

The impairment charges are non-cash items.

Shares in Doray were 10 per cent lower to 36 cents each at 11:30am.

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