Construction progress at Séguéla continues to track on — sorry, continued on track and on budget. As of the end of February, the project was 93% complete with approximately $160 million incurred on the initial $173 million capital budget. The water storage dam is complete and is currently storing sufficient water for commissioning and operating activities. And the processing plan, structural mechanical and piping and electrical and instrumentation installations are nearing completion, with energization and commissioning activity about to initiate. First ore to the crusher for commissioning is expected in early April, followed by first ore to the mill later in the month. In parallel with the excellent progress on the ground, operational readiness at scopes, are advancing well.
The mining tactical, processing and maintenance teams are being recruited with all senior management positions currently filled. Mota-Engil, the mining contractor, continued with on-site mobilization and establishment activities, together with the recruitments of key positions and equipment operators. The first phase of grade control drilling has been completed with more than 12,000 meters drilled. Initial results are bearing to align closely with the current geological models. As of the end of February, cleaning of the Antenna pit has occurred and excavation of waste is taking place with over 60,000 cubic meters of waste stripped and being utilized for the construction of the ROM pad. Preparations are currently underway for the start of the blasting operations in order for the first ore to be available for the commissioning of .
Back to you, Jorge.
Jorge Ganoza : Thank you, David. The team does a good job keeping our website updated on the construction gallery for Séguéla. So I invite you to visit the website and the construction gathering. So Luis, do you want to give us a briefing on the financials?
Luis Ganoza : Yes. Thank you. I will start addressing the impairments we have recorded in Q4. We recorded total impairment charges, as Jorge mentioned, of $188.8 million before tax and $164.5 million net of tax. At Yaramoko, we have recorded an impairment charge of $103.5 million before tax. The impairment is related to the write-off of exploration and evaluation assets of $60 million and lower expected cash flows as a result of higher costs and lower reserves from the elimination of recoveries from our reserve base. At Lindero, we have recorded an impairment charge of $70.2 million before tax. The impairment is related to lower expected cash flows as a result of higher costs to a large extent related to inflationary pressures seen throughout 2022 and the effect of higher discount rates.
At San Jose, we have recorded an impairment charge of $9.1 million before tax. The impairment is related to car costs as well as capitalized exploration expenses over the past few years which can’t fully replace depletion. Also contributing to the impairment is the fact that the partial replacement of the dilution we have seen has been at a lower head grade compared to the previous average head grade of the reserve. As a result of the impairment, for Q4 2022, we recorded a net loss of $160.4 million. After adjusting for the impairment and a write-down of ore stockpiles at the Lindero mine of $3.8 million, adjusted net income was $7.2 million compared to $29.1 million in Q4 2021. The reduction in adjusted net income was mainly due to lower sales volume, lower silver prices and higher costs year-over-year across our operations.
The lower volumes were largely in line with our mine plan. EBITDA for the quarter was $55.8 million, a $33 million reduction over Q4 2021, as explained before due mainly to lower sales of $34 million. Free cash flow from ongoing operations, that is after CapEx at our operating mines and corporate expenses was $4.4 million compared to $46.8 million in Q4 2021. The drop in free cash flow is consistent with the reduction in EBITDA and higher CapEx execution quarter-over-quarter of $5 million. For the full year, we have recorded a net loss of $135.9 million compared to a net gain of $59.4 million in 2021. The loss is explained by the impairment charges as previously discussed. After adjusting for impairment charges and other nonrecurring items, adjusted net income for the year was $42.6 million compared to $100.6 million in 2021.
