OZ Minerals is preparing to accept asset write-downs of up to $2.8 billion as it battles to refinance more than $1 billion in debt by 27 February 2009.
The minerals mining firm released the findings of its initial asset review on 13 February 2009. The Company’s auditors, Audit Committee or its Board have not yet examined the review.
Oz Minerals says the significant fall in commodity prices had caused the carrying value of most of its assets to decline considerably.
The business claims while it continues to address this through its cost reduction program, these efforts have not been sufficient to offset the decline in asset values.
The higher than expected write-downs have only fuelled analyst speculation about the firm’s ability to solve its debt problems with its banks.
Industry officials are suggesting the company may have to look at splitting and recapitalising.
OZ Minerals was born out of the merger of Oxiana and Zinifex in 2008.
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