BRITISH COLUMBIA

Goldcorp Q4 could include writedown of $2.3-$2.7 billion at Cerro Negro mine

01/13/2015 07:49 EST | Updated 03/15/2015 05:59 EDT
VANCOUVER - Goldcorp Inc. (TSX:G) is warning that it may be required to write down the value of an Argentinian mine by up to US$2.7 billion.

The Vancouver-based company says its Cerro Negro mine faces a number of challenges that are affecting its long-term value, including local currency and inflation problems and market conditions.

Goldcorp says it's still working to complete its impairment analysis for Cerro Negro and will provide more detail with its fourth-quarter financial report.

It currently estimates the mine's asset value has been impaired by between US$2.3 billion and US$2.7 billion.

The warning was included with a statement on 2014 and 2015 cost and production estimates released after markets closed Monday.

Goldcorp also announced separately Monday that it will sell its Wharf mine in South Dakota for US$105 million cash to Coeur Mining Inc. (NYSE:CDE).