I am reading the Key Assumptions on Page 41:
2014 POG US$1,300, Probable reserves 820,000, Production capacity for next 5 years 120k.
2015 POG US$1,200, Probable reserves 590,000, Production capacity for next 5 years 135-150k.
And these changes are leading to the impairment charge. To me if they mine quicker because of increased capacity that's a good thing.
Indeed on page 42 they give a sensitivity analysis of the impairment charges:
|
Column 1 |
Column 2 |
1 |
Assumption change |
Effect on Impairment of Co-O CGU $’000 |
2 |
US $100 per ounce change in gold price |
54,200 |
3 |
1 percent increase/decrease in the discount rate |
4,780 |
4 |
5 percent increase in operating costs |
36,700 |