LONDON (Alliance News) - Red Emperor Resources NL on Friday said its losses widened in its last financial year, hit by a USD19.4 million impairment charge.
In a statement, the oil and gas exploration company said its loss before and after tax amounted to USD19.7 million in the year ended June 30. That was more sizeable than the USD10.2 million loss in the prior financial year.
Losses widened as impairment charges swelled from USD9.6 million.
The company's annual report showed that Red Emperor's auditor, BDO Audit (WA) Ltd issued a qualified opinion for the results.
According to the report, as of June 30, 2014, the auditors were unable to obtain "sufficient appropriate audit evidence to support the carrying value" of Red Emperor's investment in associate of USD6.3 million because management were "unable to obtain access to the financial information of the associate".
"The audit opinion on the financial report for the year ended June 30, 2014 was modified accordingly. Consequently, as a result of the possible effect of the auditors modified opinion in the prior year, the auditors were unable to determine whether any adjustments to the amount of the impairment resulting from the reclassification of the investment in associate to a non-current asset held for sale were necessary and therefore the auditors have issued a qualified opinion for the year ended June 30, 2015," the audit opinion in the annual report said.
Shares in Red Emperor Resources were down 1.5% at 0.970 pence on Friday close to midday in London.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
