Resolute Mining shares plunge on Mali govt agreement
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More news: Shares in Resolute Mining fell after the gold miner said it will pay higher corporate income tax and fuel duty from its operations in Mali, following the detention of three of its executives by Mali authorities in November.
Resolute shares were down 4% to 41.8 cents by 1pm AEDT, having dived more than 50% since the end of October.
Resolute Mining to pay higher tax and duty in Mali
The news: Resolute Mining will pay higher corporate income tax and fuel duty as part of a migration to a new mining code in Mali, and has confirmed a third settlement payment to the Mali government by the end of December.
The numbers: The gold miner said a third and final settlement payment of USD30 million ($47 million) will be made to the Mali government this month. It has previously made two payments totalling USD130 million.
In addition, as part of migration of its assets to the 2023 Mining Code, its corporate income tax rate will increase to 30% from 25%, and fuel duty exemption will be removed, while royalties to the government will be based on a sliding scale.
The context: The settlement payments are part of a protocol agreed with the Mali government to secure the release of its detained executives last month.
Meanwhile, its chief executive Terence Holohan, who was one of the three employees detained by Mali, will take a leave of absence until January-end to spend time with his family.
Current chief financial officer Chris Eger will become the acting CEO during this period, while group financial controller Dave Jackson will become acting CFO.
Resolute, which is also listed on the London Stock Exchange, holds an 80% stake in the Syama gold mine in Mali, with the African country’s government owning the balance 20%.
The source: ASX announcement
