TSXV:AZC.P - Post by User
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TELEMARKERon Nov 05, 2015 9:21pm
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HBM Q3
HBM Q3 Recent developments
As indicated, there was an impairment loss recognized of $34.5-million to reflect the orderly liquidation value of the previously purchased equipment and certain long-lead equipment deposits in the Arizona business unit. This followed from the completion of a value engineering process in the second and third quarters of 2015, which deemed that certain equipment previously purchased or ordered by prior Augusta management is unsuitable to achieve the design objectives for Rosemont and that different equipment will better meet Rosemont's objectives while observing permitting commitments. Although Hudbay's valuation assumptions in determining the Augusta purchase price allocation allowed for additional capital spending beyond Augusta's previous guidance, the purchase price allocation valued this equipment at cost based on the information available at the time.