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
0
Assumption change
Effect on Impairment of Co-O CGU $’000
1
US $100 per ounce change in gold price
54,200
2
1 percent increase/decrease in the discount rate
4,780
3
5 percent increase in operating costs
36,700
MML Price at posting:
47.5¢ Sentiment: Hold Disclosure: Held