Mineral Resources Share Price Enhanced by 7% Following ASX Inquiry Resolution

2 min read | October 29, 2024 03:04 PM AEDT | By Team Kalkine Media

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Highlights:

Mineral Resources Ltd (ASX:MIN) shares rose 7.7% to an intraday high of $37.18 following a company response to market inquiries.

The ASX's inquiries related to allegations against CEO Chris Ellison and company payments to offshore entities.

An investigation is underway, with the board expected to release conclusions by next Monday.

Mineral Resources Ltd (ASX:MIN) experienced a notable share price increase of 7.7%, reaching an intraday high of $37.18 on Tuesday. This uptick followed the company's recent communication addressing questions from the ASX regarding price-sensitive information linked to CEO Chris Ellison.

The ASX had raised concerns stemming from media reports on October 19 regarding personal tax evasion allegations against Ellison. In its response, Mineral Resources clarified three key points. Firstly, it addressed payments made to offshore entities connected to Ellison, stating these payments were related to pre-IPO contracts and were recognized as liabilities prior to the company's public listing in 2006. The company emphasized that these transactions did not constitute price-sensitive information.

Secondly, the company discussed Ellison's self-reporting of undeclared income to the Australian Taxation Office (ATO). Mineral Resources maintained that this matter pertained solely to Ellison's personal tax obligations and had been resolved, asserting that it did not undermine the board's confidence in his leadership.

Lastly, the company addressed the engagement of external lawyers for an investigation into the allegations. Mineral Resources argued that disclosing the investigation at this stage would be premature and could lead to market speculation that would be difficult to manage.

In light of recent share price volatility, Mineral Resources acknowledged that media speculation and governance concerns contributed to fluctuations. The board noted that while the investigation into the allegations continues, no other unannounced information was identified as influencing the share price movement.

The board is committed to addressing inconsistencies in reported matters and has indicated that an announcement regarding its findings and proposed actions is anticipated by next Monday. Ellison is currently on planned leave and is expected to return to work next month.

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