Write down of equipment held for sale
During the third quarter of 2009, the Company commenced the process to sell certain
mining equipment in order to fund future working capital requirements. The Company
recorded the equipment held for sale at net realizable value of approximately $13.1
million which resulted in a write down of $10 million. Subsequent to the period ended
September 30, 2009, the Company sold a majority of this equipment for $11.2 of which
$4.7 is restricted to pay the January 15, 2010 semi-annual interest on the Notes and
$2.2 million is restricted until the beginning of December 2009 at the earliest. The
Company recorded the remainder of this group of equipment for estimated net
realizable value of $1.9 million.