Loading ...Yamana warns Argentina’s looming tax on exports could hit bottom line
Canada’s Yamana Gold (TSX: YRI) (NYSE: AUY) said Wednesday that Argentina’s surprise decision to impose a new tax on all exports could hurt its cash flow, even as the miner is mulling ways to mitigate the impact.
Earlier this month, Argentine President Mauricio Macri and economy minister Nicolás Dujovne announced temporary austerity measures to strengthen the country’s ailing economy.
Among the actions, there is a proposal to impose an export duty of 3 Argentine Pesos per each $1 in exports of goods and services until the end of 2020. With US dollar worth about 37.8 pesos as of Wednesday, companies are looking at a 7.5% tax, which applies to revenues, not earnings, so the impact can be significant.
Yamana warns Argentina’s looming tax on exports could hit bottom line