Gindalbie slumps on $640M Karara write-down

Company News

Shares in Gindalbie Metals Limited (ASX:GBG) slumped after the iron ore miner revealed a $640 million write-down of its interest in the Karara project.
The impairment charge recognises lower than forecast production levels at the project due to current capacity restrictions, a lower than forecast iron ore price and a higher than expected Australian dollar exchange rate. 
The company says the write-down will not change its ability to continue to operate its business and will be recorded in its full 2014 financial year accounts. 
Shares in Gindalbie Metals slumped almost 19 per cent to close at $0.047 following the announcement, having shed more than 50 per cent this year.  
Gindalbie Metals reported a net profit of $2.89 million in the first half of the 2014 financial year.