I have raised this question many times.For many years' annual...

I have raised this question many times.

For many years' annual report ARH's independent auditor values ARH's net asset at around $325m. How's that possible?

1) They don't own the mine, just leasing the area; if go into liquidation (I believe it will), ARH cannot sell Belmore project (they lose mining rights)
2) Even if they own the mine, I've NEVER seen undeveloped magnetite been valued at $325m (this is UNDEVELOPED). Other company's independent auditor value 1Bt of magnetite a lot less eg $50m.

How come for many years, no asset write-down? I'll read 2012 Annual report when it comes out to see if ARH's project still valued at $320m given spot iron ore price only $90/t (their opex is very high + royalties to CP not included). If continue value at $320m and ARH goes into liquidation, will be interesting to see litigation lawyers reading independent auditor's report.