Post by
birdman1234 on Jun 02, 2015 9:32am
Southern Arc writes down Eagle Hill as a loss
That's why the shift to Japan. Sounds like another previous nickle play loss.
Although Eagle Hill is accounted for as an equity investment by the Company, it is subject to evaluation of significant and prolonged declines in value. The market value of the Company’s investment in Eagle Hill at March 31, 2015 was $2,628,628 (June 30, 2014: $6,258,639) based on the publicly traded closing share price of Eagle Hill of $0.42 (June 30, 2014: $1.00). As such, the Company recorded a write-down of $3,354,935 during the period ended March 31, 2015 and will carry its investment in Eagle Hill at market value until such time that the market price rises above the Company’s approximate current investment cost. At that time, the Company will determine whether a recovery can be related objectively to an event occurring after the impairment was recognized, and only then will the Company record a recovery of the impairment in Eagle Hill in the Statement of Comprehensive Loss.