RE:Hounde ??Per the Q2 report (note 5), Hounde is valued at $122.4m, representing the acquisition cost from Avion and capitalised project expenditure to date.
I doubt that any impairment will be necessary as a result of current troubles, as there is no evidence, yet, AFAIAA that our prospects of obtaining the mining licence grant are dimished - though it may be delayed. As I've mentioned previously, a delay would be no bad thing whilst gold remains so weak
However, I am a bit concrned that further impairments of existing assets may be necessary, due to the current v low gold price. The most recent Tabakoto NI43-101 resources were estimated at a gold price of $1,350, so there is a risk that resource estimates will have to be revised downwards, which could result in an impairment.
Whilst such impairments would have a bad effect on earnings, cashflow is more important in my eyes. Driving AISC down and keeping it down, in a low gold price environment is key to that, allowing us to service and repay debt.
Cheers,
Mark