Shares in gold miner Silver Lake Resources have dropped on the back of the company announcing a $48 million non-cash impairment.
The write-down of its non-current assets comes in addition to impairments of $42 million against its Murchison Gold Operations announced at the end of December, which have since been placed on care and maintenance.
The company said the depreciation of assets was due to a number of factors, including a reassessment of the value of its exploration and development assets at its flagship Mount Monger operation.
In particular, placing the Lakewood processing facility on care and maintenance had contributed to the impairment, the company said in a statement.
Silver Lake has opted to categorise two underground deposits - the Cock-eyed Bob and Maxwells underground deposits - as having only long-term potential until plans for mine development are finalised.
In addition to announcing the impairment, the company disclosed its decision to “de-recognise deferred tax assets” of $53 million.
Managing director Les Davis said that referred to losses recorded on the company’s balance sheet in 2012-13 financial year, which would not be included for the 2013-14 financial year.
Shares in the company had fallen just under 2 per cent to 43 cents each as 1:30pm WST.