Oz Minerals has flagged asset write-downs of up to $2.8 billion, diminishing its chances of refinancing more than $1 billion in debt by the February 27 deadline.
The miner’s chief financial officer David Lamont blamed the global financial crisis for the reduced value of the company’s assets.
“While we continue to address this through our ongoing cost reduction program, these efforts have not been sufficient to offset the decline in asset values,” Lamont said.
The news comes as another blow to Oz shareholders, who have been unable to trade the stock since November 28 when the shares were suspended at 55c to deal with its $843 million debt burden, which its syndicate of banks are hesitant to roll over.
The write-downs, announced on Friday 13, include between $1.9 billion and $2.2 billion for impairments on current mines and development projects, advanced exploration projects and deferred projects including its Avebury nickel mine in Tasmania.