ASIC notes the decision by ASX-listed Panoramic Resources Limited (Panoramic) to record adjustments related to the recoverability of both exploration and evaluation and property, plant and equipment assets in its financial report for the half-year ended 31 December 2015. 

Panoramic has recorded an impairment loss in respect of exploration and evaluation and property, plant and equipment assets for both the Lanfranchi and Savannah mine sites of a total of $47.4 million in the half-year to 31 December 2015. Impairment losses have also been recognised in respect of other assets.

ASIC reviewed Panoramic’s financial report for the year ended 30 June 2015 as part of its financial reporting surveillance program, and made inquiries about Panoramic’s assessment of the recoverability of the Lanfranchi and Savannah assets. 

As outlined in ASIC media release 15-331 MR Focus areas for 31 December 2015 financial reports, asset values remains a focus area of our financial reporting surveillances, particularly those companies affected by lower commodity prices.