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Highlights
- Resolute Mining transitions to Mali's 2023 Mining Code, impacting tax obligations.
- The company confirms its final settlement payment to the Mali government by December.
- Leadership adjustments announced as CEO takes temporary leave.
Resolute Mining (ASX:RSG) is set to navigate higher tax and fuel duties as part of transitioning its mining operations to Mali’s 2023 Mining Code. The gold mining company confirmed that this change includes increased corporate income tax rates and adjustments to government royalties, alongside the conclusion of a significant settlement agreement with Mali.
The company has committed to making a third and final settlement payment of $30 million (USD), scheduled for December. This follows earlier payments totaling $130 million (USD) under a protocol agreed with Mali’s government. The settlement was established to secure the release of company executives detained earlier this year. Resolute Mining emphasized that fulfilling these financial commitments underscores its intent to stabilize its operational environment in Mali.
In line with the new Mining Code regulations, Resolute Mining will see its corporate income tax rate rise from 25% to 30%, reflecting a substantial increase in tax obligations. Additionally, the exemption previously enjoyed on fuel duty has been removed. Royalties paid to the Mali government will now adhere to a sliding scale system based on output levels, creating further operational adjustments for the company.
Resolute Mining, listed on the London Stock Exchange, retains an 80% stake in the Syama gold mine in Mali. The remaining 20% of this significant gold-producing operation is owned by Mali’s government. As one of the key assets in Resolute's portfolio, Syama plays a pivotal role in sustaining the company’s performance within the region.
In an operational update, Resolute Mining announced leadership changes to ensure smooth management amid these developments. Chief Executive Officer Terence Holohan, who was among the three executives detained by Mali's authorities earlier this year, will take a temporary leave of absence until January. Chris Eger, the company’s Chief Financial Officer, will assume the role of Acting CEO during this period, while Dave Jackson, currently Group Financial Controller, will step in as Acting CFO.
Resolute Mining’s continued alignment with Mali’s regulatory framework and fulfillment of settlement agreements underline its commitment to long-term operations in the region. Despite financial adjustments arising from the updated Mining Code, the company aims to maintain stability in its operations while navigating a challenging economic environment.
