Newcrest expects to take impairments

 Australia’s Newcrest Mining Ltd warned yesterday it expects to take post-tax impairments of up A$2.5 billion (K5.64 billion) in fiscal 2014 related to its flagship Lihir gold mine and other mines in Australia and Ivory Coast.

Although an impairment has no impact on cash flow, a reduction in book values in the range of A$1.5 billion (K3.39 billion) to A$2.5 billion (K5.64 billion) is estimated to adversely impact gearing by between three and five percent, Newcrest said.

The latest impairment is in addition to the A$47 million (K106.2 million) after-tax impairment of west African exploration assets included in Newcrest’s first-half results.

Newcrest is scheduled to release its 2014 financial results on Aug 18. – Reuters