Canadian miner Yamana Gold says Argentina's new export tax will hit its bottom line

SMM, Sept. 13: Canada's Yamana Gold said Wednesday that Argentina's unexpected decision to impose a new tax on all exports could hurt its cash flow, and the miner is already considering how to mitigate the impact. Earlier this month, Argentine President Macri and economy Minister Djovni announced temporary austerity measures to rescue the country's weak economy. Among these actions is a proposal to impose an export tax of 3 Argentine pesos for every US dollar exported by the end of 2020. As of Wednesday, the dollar was worth about 37.8 pesos, and companies were considering a 7.5% tax, which applies to revenue rather than profits, so the impact could be huge. The Toronto-based mining company operates the new Cerro Moro mine, as well as Argentina's Agua Rica and Gualcamayo mines. The company said it was taking a series of measures, including adjusting its foreign exchange hedge programme as a result of currency fluctuations in Argentina and other countries. Daniel Racine (Daniel Racine), president and chief executive of the company, said in a statement: "Argentina's export tax is likely to offset some of the profits." As part of its joint venture with Agnico Eagle mines, Yamana also owns the Malartic mine in Canada.