Clean TeQ (ASX:CLQ) $180m write-down expected for FY2020

Clean TeQ (ASX:CLQ) has told shareholders it will recognise a non-cash write down of approximately $180 million in its 2020 financial year results for its Sunrise Project and project-related assets.

The write-down comes after a review of the carrying value of the Sunrise Project assets based on a conservative best estimate of what the probable project outcomes will be and macroeconomic assumptions including forecast metal prices.

The company said the value of the Sunrise Project is supported by its large scale and long-life nickel, cobalt and scandium resource.

While the Covid-19 pandemic has presented difficult conditions for financial markets and challenges for funding new project development, the company said it remains optimistic on the outlook for demand growth in the electric vehicle (EV) and lithium-ion battery sectors.

An investment partner has not been secured for the project, but given the strong outlook for nickel and cobalt demand, Clean TeQ said it remains committed to developing the project once funding has been secured.

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Source: Finance News Network