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Otto Rock comments:
Argonaut Gold (AR.to) impairs half its market cap
You have to scroll down the YE results NR to get to the fun paragraph as they don’t seem to be too keen on this info at the top of the missive. But make the effort, because when you do…
There were two significant impairment write downs in 2019: first, a write down of mineral inventory at the El Castillo Complex ($15.4 million) and La Colorada mine ($12.1 million) primarily related to changes in the expected recovery of gold ounces in the leach pads and second, a non-cash write down of the book value of the San Antonio project ($111.0 million) following the denial of the permit application. The associated tax impact of these, along with other results from operations, was an income tax recovery of $15.4 million compared to income tax expense of $6.7 million in the same period of 2018.
…you get to read how a C$276.5m market cap company has just written off assets to the tune of U$111m. That’s over half its current market cap in Loonie terms.