Troy flags $87m impairment

Perth-based gold miner Troy Resources says it expects to record an $87 million impairment in its full-year accounts, with the majority of the charge attributed to the sale of its Casposo project in Argentina.

In a statement today, Troy said it was required to write off $71 million in cumulative translation differences following the sale of the Casposo gold project to Austral Gold in March.

“These cumulative differences are non-cash and are only reclassified to the income statement when the disposal process has been completed,” Troy said.

It also revealed a further $16 million adjustment stemming from the winding up of operations at its Andorinhas mine in Brazil.

“The impact of these one-off cash items results in about $87 million being written off for the 2016 financial year,” it said.

Troy also upgraded its gold production forecasts for FY17 to between 85,000 and 95,000 ounces.

That’s up from the expected maximum 80,000oz it hopes to achieve in calendar year 2016.

Last month, Troy warned of a big hit to its production guidance for FY16 after facing a number of delays at its Karouni operation in Guyana.

Today, the miner said the processing plant was now running on a sustainable basis and, with the wet season coming to an end in the region, it anticipates improved performance from the mining fleet as well as optimisation of the mining process.

“The company also expects to benefit from shorter haul distances, recently approved by local authorities, and the continued improvement in productivity from extensive training and development initiatives with the workforce on site,” Troy said.

Troy shares were 2.9 per cent lower to 49 cents each ahead of the close of trade.