Mining and exploration company IGO (ASX:IGO) has announced it expects to record a non-cash, pre-tax impairment expense of between $880M and $980M in its financial results for the year ending 30 June 2023.

The company said the impairment relates to the assets it acquired from Western Areas and the reassessment of the accounting value at Cosmos and Forrestania following higher than expected capital and operating costs and delays.

It also said its withdrawn its guidance provided in October 2022 related to Cosmos due to these issues and that an independent review of Cosmos to better understand the risk and opportunities is underway.

Despite the projected impairment, the IGO maintained that Cosmos remains an essential part of its business plans, with potential downstream optionality in their strategy to develop an Integrated Battery Materials Facility in Western Australia.