MinRes shares tumble on 'rental relief' payments disclosure
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The news: Mineral Resources shares opened lower after the mining group revealed details of financial benefits provided to the daughter of its billionaire founder and outgoing managing director Chris Ellison.
The numbers: MinRes shares fell 4.8% to $33.62 by 11am AEDT, having shed more than 30% during the last month, dragged down by a series of scandals surrounding Ellison.
After being queried by the ASX, late Thursday MinRes disclosed more detail into what financial benefits were provided to Ellison following the company's investigation into his tax evasion allegations.
MinRes said that companies linked to Ellison's daughter Kristy-Lee Craker were asked to repay $158,000 after an investigation into a "rent relief" arrangement between 2012 and 2023.
The context: The "related party nature" of the arrangement with Ship Agency Services and Propel Marine, entities which Craker has an interest, was identified and "action was taken to bring it to an end" in FY23, MinRes said.
However, the company said that this now disclosed information was not materially price sensitive given "the quantum involved, as well as MIN’s ability to seek repayment. Accordingly, MIN did not consider that there was a requirement to make retrospective disclosure in the Annual Report for FY2023".
MinRes also said that the company's procured goods and services on behalf of Ellison for this personal benefit and that "procedures existed to obtain timely repayment from my Ellison for these goods and services".
The miner noted that it will keep the market informed on further developments regarding the board's investigation into Ellison's use of company resources for his personal benefit.
The source: ASX announcement
