By Stuart Condie
SYDNEY–Australian miner IGO will record a noncash impairment of up to 980 million Australian dollars (US$669.9 million) against assets acquired in last year’s takeover of nickel company Western Areas.
IGO on Monday said it would record the A$880 million-A$980 million impairment against the Cosmos and Forrestania assets in its results for fiscal 2023, which ended on June 30. It has also engaged an independent review of the Cosmos operation in Western Australia.
“Capital and operating-cost escalation, and unforeseen operational challenges have impacted the value of the project,” said Acting IGO Chief Executive Matt Dusci, who added the Cosmos project remained important to the company.
IGO withdrew its previously announced guidance for Cosmos.
The ASX-listed miner said it would provide further detail on July 31, when it announces its fourth-quarter results. It expects the review to complete in the December quarter.
Write to Stuart Condie at [email protected]
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