September 12, 2018 / 12:49 PM / a year ago

Yamana Gold says Argentina's new export tax could hurt cash flow

Sept 12 (Reuters) - Canada’s Yamana Gold Inc said on Wednesday Argentina’s proposal to impose new tax on exports could hurt its cash flow despite the company taking steps to mitigate the impact.

The South American country, which is facing an economic crisis, announced new temporary export taxes on grains and other goods last week in a bid to balance its budget in 2019.

Yamana, which operates the Cerro Moro, Agua Rica and the Gualcamayo mines in Argentina, said it was taking a number of measures including adjusting its foreign exchange hedging program due to currency fluctuation in Argentina and other countries.

“Argentina’s export tax has the potential to offset a portion of these benefits,” said CEO Daniel Racine in a statement.

The miner, through its units in the country, will seek an injunction to refrain the Argentine government from collecting the taxes, the company said.

Reporting by John Benny in Bengaluru; Editing by Arun Koyyur

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