UPDATE 1-Yamana Gold posts big loss on charges for Brazil mines, tax

miércoles 29 de octubre de 2014 17:35 GYT

(Adds details on charges, capital spending, production forecast, quarterly production)

TORONTO Oct 29 (Reuters) - Yamana Gold Inc reported a hefty third-quarter net loss on Wednesday as large impairment charges for three Brazilian mines and charges for newly enacted Chilean taxes more than offset higher production and lower costs.

The Canadian-based gold miner recorded a $668 million impairment charge for its C1 Santa Luz, Ernesto/Pau-a-Pique and Pilar mines in Brazil and non-cash charges of $329.5 million related to Chilean taxes.

Yamana mothballed its C1 Santa Luz project in the third quarter due to falling metal prices and development challenges. It also cut production at its Pilar mine at the start of October and had earlier reduced activity at its Ernesto/Pau-a-Pique mine.

Yamana said it continues to review all options for the assets to "maximize value above current carrying values."

Canada's Globe and Mail newspaper, quoting unnamed sources, reported in June that Yamana had put three mines in Brazil up for sale at the beginning of the year, but struggled to find buyers. The Chapada, Jacobina and Fazenda Brasileiro mines are nearing the end of their lives and have faced a number of problems, the paper reported.

The Toronto-based miner said its expansionary capital spending would be "significantly lower" in 2015 and 2016 than in previous years as it considers production and budget plans.

In the third quarter ended Sept. 30, Yamana reported a net loss of $1.02 billion, or $1.17 a share, compared with net earnings of $43.4 million, or 6 cents a share, in the year-ago period.

The adjusted net loss was $12.5 million, or 1 cent a share, compared with adjusted earnings of $69.5 million, or 5 cents a share, in the year-ago quarter.   Continuación...