GREY:NEVDQ - Post by User
Comment by
mininginvon Nov 18, 2021 3:51am
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Post# 34139458
RE:RE:Patchh: I am not sure what your comments
RE:RE:Patchh: I am not sure what your commentsPatch, where do you see that the asset is impaired? From the Q3 FS (cash generating unit (“CGU”)):
"During the period, the Company performed an impairment analysis to test the recoverable amount of the Project due to the significant drop of the Company’s market capitalization at September 30, 2021 relative to net assets in addition to other factors described in Note 1.
The impairment analysis performed did not result in the recognition of an impairment loss for the period ending September 30, 2021.
The cash flow model for the impairment analysis is based on detailed forecasts for the Project and is prepared using life-of-mine plans considering expected future production based on estimates of recoverable reserves and resources. The model is most sensitive to the estimated long-term copper prices, the discount rate, and the delays in ramp up of the production of the Project. Based on the Company’s sensitivity analysis, an approximate 9% decrease in the long term copper prices, an approximate increase in the discount rate to 13% or a delay of the Project by approximately two years to the third quarter of 2024 (based on current consensus copper prices) in the currently forecasted ramp up of production would result in the recoverable amount of the CGU equalling the net asset value of the CGU."