St Barbara shares plummet 33% on $210 million tax bill
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The news: Shares in gold miner St Barbara have dropped 35% after its wholly owned subsidiary Simberi Gold was hit with a $210 million tax bill from Papua New Guinea's Internal Revenue Commission.
The assessment includes large penalties and relates to asset depreciation claims and the recapitalisation of the business in 2018.
What they said: In a statement on Tuesday, St Barbara rejected the assessment and said it would appeal the decision within 60 days.
"Simberi Gold notes that the IRC has reached back, beyond the period of 5 years permitted for amended assessments (being the statutory limitation period), and to do so has attempted to argue that Simberi Gold has been fraudulent in the preparation of the tax returns," the company said in an ASX announcement.
"St Barbara takes this assertion very seriously and will vigorously defend it. Simberi Gold has utilised reputable tax advisors within PNG throughout the relevant periods, has made full and true disclosures of all material facts and strongly rejects any suggestion of dishonest conduct of any nature whatsoever."
CEO Andrew Strelein called the finding "disappointing".
"We hope that with discussion and realisation of the miscalculations on top of the erroneous applications of the law in the IRC Amended Assessments, we can resolve this matter quickly. Simberi Gold will prepare its appeal which must be lodged by 17 February 2025 under the legislative provisions," he said.
The source: ASX
