Kingsgate Consolidated Limited
(ASX:KCN) has announced a $300 million writedown against its Challenger gold mine in South Australia.
The gold miner has slashed output at the mine to cope with the slumping gold price.
Kingsgate bought Challenger for $376 million and operations at the mine have been hit by a series of operating issues restricting output and earnings.
Kingsgate says it will cut production at the mine to between 70,000 and 80,000 ounces of gold annually, down from output which were once targeted at around 100,000 ounces annually once recent production difficulties had been resolved.
The miner has also decided to focus on mining higher grades of gold.
Kingsgate booked an $8.1 million net profit in the first half of the current financial year.
