GoldCorp Penasquito mine in Mexico.
Goldcorp Inc. recorded a $2.3-billion (U.S.) impairment charge on its Argentine mine, a writedown that led to the miner's quarterly loss.
The Vancouver-based miner had warned in January that it would write down its Cerro Negro mine in Argentina due to declining exploration and a change in the South American government's fiscal policies.
The announcement comes in the same week that Barrick Gold Corp. wrote down the value of its mines and Iamgold Corp. cut its bullion reserves – the latest signs of the gold industry's struggles with weaker precious metal prices.
For the three months ended in December, Goldcorp lost $2.4-billion, or $2.94 per share. That compared with a net loss of $1.1-billion, or $1.34 per share in the previous year.
The Canadian miner also cut its bullion reserves by 8 per cent because some of the gold was mined and it did not start exploration drilling at its Cerro Negro mine until the end of last year.
Regardless of the losses and writedown, Goldcorp has been able to navigate the downturn better than its peers. The company did not borrow heavily to make acquisitions during the commodity boom and as such has a stronger balance sheet to deal with gold's fall to $1,200 an ounce from $1,900 in 2011.
Rachelle Younglai