Polyus reduces the value of its assets – the company to write off up to $480 million

Following other gold-mining companies, suffering from the metal prices fall and have written off tens of billions of dollars, Polyus Gold has announced the forthcoming depreciation of its assets. The main write-off will concern one of the largest Russian gold deposits – the Nezhdaninskoye in Yakutia, which has been problem for Polyus for a long time.

Yesterday, the gold-mining company Polyus Gold announced the forthcoming non-monetary write-off in the amount of $460-480 million by results of the first six months because of the gold price fall in this period, which, as the company expects, will continue. About $320 million of write-off will concern the Nezhdaninskoye deposit in Yakutia (estimated resources are 14-20 million ounces) and the Degdekanskoye deposit in the Magadan region (3 million ounces), which are at the exploration stage. $140 million more of write-off will concern the developing Yakut deposit Kuranakh. A source, who is familiar with the company’s situation, notes the positive factor – there won’t be write-off on other acting assets and the development project of the Natalkinskoye deposit (Magadan).