Goldcorp Inc warns of massive writedown of up to US$2.7B on Goldcorp Inc. expects to record a massive writedown of up to US$2.7 billion on its new Cerro Negro mine in Argentina due to ongoing political and economic challenges in that country.
2014 will go down as the year when miners dumped their troubled assets for hardly anything in return. And don’t be surprised to see a few more dirt-cheap deals in the coming year
The Argentine government has made life extremely difficult on foreign mining companies by restricting the imports of goods and services and implementing exchange rate controls that limit companies’ ability to convert Argentine pesos into U.S. dollars. Inflation is also very high; Goldcorp previously said that every time it brings a dollar into Argentina at the official exchange rate, suppliers and contractors treat it at the “unofficial” rate, which is almost 70% higher.
https://business.financialpost.com/2015/01/12/goldcorp-inc-warns-of-massive-writedown-of-up-to-us2-7b-on-argentina-mine/