Lower than forecast production and weak iron prices has seen Gindalbie suffer a massive impairment on its Karara Mining investment.
The miner has forecast a $640 million impairment.
It comes after a review in to its holding in the massive Karara iron ore project.
Gindalbie pinned the impairment on "lower than forecast production levels at the Karara project due to current capacity restrictions; lower than forecast iron ore prices; and higher than anticipated Australian dollar exchange rates".
However Gindalbie noted "the impairment charge will not change the company's ability to operate its business".