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12/21/12

Pan American Silver (PAA.to) (PAAS) bails on the Navidad project, Chubut Argentina

This translated from this report, but there are other doing the rounds too:
Mining company Argenta, that is looking to operate the silver/lead deposit 'Navidad', will close its offices in Puerto Madryn and Trelew after the suspension of the law bill that would allow large-scale mining [in Chubut] sponsored by Governor Martín Buzzi, after facing overwhelming and massive rejection from residents in all parts of Chubut province.

....

A source close to the company said on Thursday stated unofficially that in the next few days Argenta, subsidiary of the multinational Pan American Silver, will close its administrative office in Puerto Madryn and in a few weeks do the same with its offices in the city of Trelew. Continues here

PAAS made it clear a couple of months ago that it was suspending activities, this will make the pull-out official. Watch for the announcement from the company soon enough. 


Another vote on Argentine mining, duly cast.

UPDATE: Yes indeed my mailing-in friends, the question is all about writedowns and impairments now, isn't it? As PAAS paid a Reuters reported $626m for Aquiline (oh well played mister henderson) back in 2009 and has a carrying value of $560m on the property according to its latest filing (3q12 financials) that's quite a fair chunk of the company's $3.4Bn in total assets, is it not?. Is this going to be a balance sheet special Christmas present for the YE numbers? Time will tell.

Meanwhile, rather than rely on sourced hearsay from Chubut and pathetic gossip-mongering blogs like this humble corner of cyberspace, somebody really ought to get in touch with the company and get some official comment on this. At least I think so.