Mineral Resources shares climb as it clarifies tax evasion allegations
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More news: Shares in Mineral Resources have rebounded more than 4% to $35.98 as the under fire company offered clarifications regarding tax evasion allegations against managing director Chris Ellison.
The company said it has been aware of the matter since 2022, but did not consider it materially price sensitive since it related to matters prior to its 2006 IPO.
The stock has lost nearly a quarter of its value since the allegations came to light earlier this month and Ellison admitted to his involvement.
Mineral Resources offers clarity on tax evasion matter
The news: Mineral Resources says it was aware of allegations of tax evasion against managing director Chris Ellison since 2022 but did not consider these materially price sensitive since it related to historic matters.
The numbers: The company confirmed to the ASX it was first made aware of allegations in June 2022, and engaged external legal counsel to investigate these at the time.
It was informed of more detailed allegations in June 2023, and was provided substantive details in November 2023, when it again engaged external legal counsel to investigate the matter. The entire board received a full briefing and considered the matter in June 2024.
The context: The company said it did not disclose the matters to the ASX at the time because it did not consider them materially price sensitive as they related to payments made more than 15 years ago, and were to discharge a liability incurred prior to the company’s IPO in 2006. The miner has been under fire since Ellison admitted to involvement in an alleged tax evasion scheme involving offshore companies, following media reports.
MinRes clarified that contrary to media reports, the Australian Taxation Office (ATO) has not issued any amended assessments to the company with respect to depreciation claims made on assets acquired from Far East Equipment Holdings, nor has Ellison agreed to repay depreciation claims on behalf of Mineral Resources.
The company also clarified that while Ellison’s failure to declare income to the ATO was a serious error of judgement on his part, the board still has confidence in his ability to mange Mineral Resources.
The company announced on Monday that it is would respond to the matter on 4 November.
The source: ASX announcement
