LionGold

LionGold: Co records FY12 loss of $26.4m compared to $815k last year. Higher admin costs and impairment charges ballooned which resulted in the net loss. Impairment charges amounted to over $21m of which $16.0m were from goodwill, 1.8m was from an AFS asset and 3.9m on receivables to ASWA. Admin costs were attributed partly to provisions as well as fees for the proposed acquisition of Signature Metals. To reduce investment in African Stellar West Africa (ASWA) to a 41% stake, lower than the 51% in earlier announcements. Co is of the view that financial resources diverted would be more meaningfully deployed in Ghana at Owere Mines, 70% owned by Signature Metals (76% owned by co). Co will cease to be the exclusive funder of ASWA and has made impairments on its investments in it. Co currently trades at P/B of 14x