Silver Heritage loss widens on Nepal impairment charges

Tiger Palace Resort, Nepal
Tiger Palace Resort, Nepal

Australia-listed Silver Heritage Group said its 2019 loss attributable to shareholders widened significantly due to impairment charges on its operations in Nepal.

The group reported a loss of US$35 million, compared with $11 million the prior year. The loss includes an impairment charge of $22.2 million following the revaluation of the Nepal assets and a loss of $438,000 due to the restatement of its non-Nepal business on a realisation basis.

Revenue was down almost 34 percent to $15.8 million.

Silver Heritage runs The Millionaire’s Club and Casino in Kathmandu and the Tiger Palace Resort in Bhairahawa, the country’s first IR. Last year it was forced to cease its operations in the Phoenix Club in Vietnam after the club lost the license to operate tables. Silver Heritage reached an accord worth $5.25 million with the club’s owners, which was payable in two instalments, but has still to recoup some $1.47 million owing from the second instalment.

The company has been seeking to sell its Nepal operations to a local businessman, but as of a Sept. 2019 deadline the prospective buyer still had not been able to pay a $3 million deposit. The company said it would continue talks on a non-exclusive basis.

In its 2019 earnings report, Silver Heritage said the financial statements had not been prepared on a going concern basis, but as “realisation basis of accounting reflecting the expectation of the orderly disposal of the Nepal operations.”