Acacia Mining shares plunged for a third consecutive day today after the Tanzanian government gave the mining company a $190bn tax charge going back to the year 2000.
The FTSE-250 miner provided an update on investors of its debate with Tanzania just before the closing bell in London yesterday, saying that it had been informed that $40bn was owed in unpaid taxes and a further $150bn in penalties and interests. The organisation’s losses extended out into the current session today, with its shares falling as much as 17pc in intraday exchange.
The $40bn imposed charge is more than twice what the major five global gold miners combined have paid in taxes since 2000, as indicated by Investec analyst Hunter Hillcoat, who added that an answer for the dispute was ending up “increasingly difficult to envisage”.
The organisation said that it is currently considering its choices and will update the market at the appropriate time.
Tanzania prohibited the transport of gold and copper from the Eastern African nation, which represents around 33% of the organisation’s income, in March. Acacia’s offers shares dove by 68 percent since.
The mining company had now shed 40pc of its value in the latest slump, which began on Friday when it uncovered the effect of the export ban on its income.
Acacia posted a 29pc drop in revenue in the half year to June 30, its CEO disputing that the underlying performance was still “the best it had ever achieved”.
The restriction on the export has affected around 50pc of its combined production at the Bulyanhulu and Buzwagi mines, as indicated by Acacia.
Barclays analyst Ian Rossouw stated: “These claims are hard to fathom when compared with the total revenue from these mines of $9.4bn since inception.”
Acacia shares were at a descending pattern yesterday as it was revealed that the mining company is facing a claim in the UK from relatives of individuals that have died at its mines.
In comparison with the $190bn tax bill imposed on Acacia, it can be noted that the richest man in the world, Bill Gates, has a net worth of $86bn.