ASIC notes the decision by Evolution Mining Limited to reduce asset values in its financial report for the year ended 30 June 2016.

ASIC had previously made inquiries with the company’s auditor in relation to the recoverable amount of the company's Pajingo gold mine in the company's financial report at 30 June 2015.

In its financial report for the following year (ended 30 June 2016), Evolution Mining has recorded an impairment of $77.3 million against the Pajingo mine assets, on the basis of binding offers for the assets, and sale of the assets subsequent to balance date.

Evolution Mining has noted that the impairment made against the Pajingo mine in the 30 June 2016 financial report was in the context of the process of the sale of those assets, which was part of a previously announced strategy of actively managing its portfolio.

As outlined in ASIC Media Release 15-331MR Focus for 31 December 2015 financial reports impairment testing and asset values remain a focus area of our financial reporting surveillances.