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Yamana Gold ( (AUY) facing a U$1.1Bn write down

It's official. At midday today Thursday September 8th the municipal committee of Andalgalá in Argentina took into account the recent judge's ruling (that IKN told you about) and voted unanimously to ban all open pit mining operations in its district. The main effect of this legally binding vote is the permanent halt to the Yamana Gold (AUY) ( 'Agua Rica' project, located 17km from the town centre. It makes Andalgalá the first district to ban mining in the Catamarca province.

Thing is, Yamana carried Agua Rica on its books with a U$1.1Bn asset value. As it's now effectively and permanently killed as a project, if Marrone wants to be honest to his shareholders he has no choice but to write that asset off, right down to zero. That's 20% of the book value of the whole company gone, disappeared in a puff of smoke. Remember that song "There's a hole in my bucket?", Well there's a hole in your balance sheet, dear Peter dear Peter, there's a hole in your balance sheet dear Peter a hole*.

So go on newbie retail, tell me again how Argentina is a great place to go mining all of a sudden. I love that one and the way you tell it, so refreshing and optimistic of you.

*Potentially missing a hyphen at the end. You decide.