Polyus Gold Reports on Reassessment of Assets
OREANDA-NEWS. August 26, 2013. Polyus Gold International Limited (LSE – PGIL, OTC (US) – PLZLY, "PGIL", "Polyus Gold" or the "Company"), the largest gold producer in Russia, announces that following the fall in the gold price in the first half of 2013 and the subsequent sustained lower price, the Company, in line with much of the industry, has reassessed the future prospectivity of its exploration and evaluation (“E&E”) asset portfolio and has also reconsidered the economic recoverability of its mining assets.
As a result, based on a long term gold price assumption of approximately USD 1350 per ounce, PGIL expects to recognise a non-cash impairment charge in the range of USD 460 million to USD 480 million (pre-tax) in its first half 2013 results.
These impairments include an amount of approximately USD 320 million (pre-tax) primarily relating to the Nezhdaninskoe and Degdekanskoe E&E assets, as well as reductions in the carrying values of the Yakutia Kuranakh Business Unit’s assets of approximately USD 140 million (pre-tax).
The final figures will be included in PGIL’s interim financial report for the six months ended 30 June 2013 to be released on 30 August 2013.