Resolute Mining CEO detained in Mali, shares tumble

11th Nov 2024 10:36

(Sharecast News) - Shares in Resolute Mining tumbled on Monday after it confirmed that chief executive Terence Holohan and two other employees have been detained by authorities in Mali.

Responding to press reports over the weekend, Resolute said the executives were in Bamako to hold talks with the mining and tax authorities regarding "general activities" related to its in-country business practices "and to progress open claims made against Resolute, which the company maintains are unsubstantiated".

The three individuals were "unexpectedly" detained on Friday following the conclusion of these meetings.

"Resolute has followed all official processes with respect to its affairs and has provided the authorities with detailed responses to all the claims made," the company said.

"Resolute's priority remains the safety and wellbeing of its employees. The company is in regular communication with the three detained employees who remain held at the Economic and Financial Centre of Bamako (Pôle Économique et Financier de Bamako)."

Resolute said the employees are being treated well "and continue to receive support on the ground from the UK and International Embassies and Consulates".

"The company is continuing to work with the Government on a resolution and will provide further updates on the situation as appropriate."

At 1040 GMT, Resolute shares were down 29% at 24.37p.

Berenberg said in a note that it believes the claims being made against Resolute by Malian authorities broadly relate to tax.

"This is clearly an unexpected and negative release from the company," the bank said. "Limited details have been provided on the situation, which is not a major surprise, but the detaining of Resolute employees comes after certain Barrick executives were also detained by Malian authorities recently.

"The event will likely add to more cautious investor sentiment about Mali; the shares fell by circa 33% in Australia overnight.

"We remain buy-rated but look for a near-term release of the executives and a resolution to the issues in Mali."