The company cut 120,000 ounces from the reserves at its Eldridge operation after grades generated during mining were lower than expected.

As a result of the write down, the company made a net loss of $11.7 million for the June quarter and a loss of $11.2 million for the first six months of calendar 2000.

However, Kidston’s net cash improved substantially, up from $3 million in the first half of 1999 to 2000 as cash costs fell to $372 per ounce from $450/oz.