Undervaluation, page-10

I think that page 98 of the Annual Report bears reading being Note 13 Impairment of Non-Current Assets. One of the indicators of impairment testing is 'reduction in the group's market capitalisation relative to the carrying values of non-current assets'. They might still determine that the cost is recoverable by applying prevailing gold price, mining costs and remaining reserves. The testing is apparently only done annually at 30June so the half yearly accounts are safe. But they do have $US173mil in plant and exploration, development costs capitalised at 30June2016 and today have a market capitalisation of around $US70mil. Maybe it represents an opportunity for the incoming CEO to write-off $US100mil this year so the accounts(NPAT) in following years look better due to lower depreciation and amortisation costs.