Resolute Mining’s Shares Dive by 32% Amid Rising Tensions with Malian Authorities

On Monday, Resolute Mining’s shares nosedived by 32%, marking the company’s steepest single-day loss in over 16 years after three of its executives, including CEO Terence Holohan, were detained by Malian officials. Holohan and his team were in Bamako, Mali’s capital, to engage with mining and tax authorities, only to be unexpectedly held by government agents on Friday, the company reported.

This decline in shares saw Resolute’s stock plunge to as low as $0.30, recording its worst performance since October 2008, and stabilizing slightly at $0.31 by 02:42 GMT, down 30.6%. With more than 38.5 million shares traded—over double the average monthly volume of 14.8 million—the incident has triggered intensified trading and heightened market concerns.

The detentions reflect growing strain between Mali’s military-led government and international mining firms, following similar actions taken against four employees of mining giant Barrick Gold in late September. As one of Africa’s leading gold producers, Mali’s authorities push for greater control over mining revenue through a revised mining code. This policy shift aims to increase state stakes in lucrative gold projects.

Resolute’s Syama gold mine in Mali, one of only two operating mines under the company’s portfolio, provided nearly two-thirds of its 2023 output of 329,061 ounces. Resolute holds an 80% share in the project, with the remaining stake owned by the Malian government.

In an official statement, Resolute confirmed that it had adhered to all regulatory protocols and responded comprehensively to each claim presented by the authorities, maintaining that it had acted in full compliance with Malian law.

Have you read?
Countries: Women in the workforce.
Countries: Personal space.
World’s Most (And Least) Religious Countries.
Best Countries to Invest In Travel, Tourism, and Hospitality.
Most Forested Countries In The World.