West Africa-focused gold producer Resolute Mining (ASX: RSG) announced on Monday the resignation of CEO Terry Holohan, who was detained in Mali for 10 days in November.
Holohan and two other Resolute employees were held in the capital, Bamako, amid negotiations with Mali’s military government over terms to operate the Syama mine. The detentions ended after the miner agreed to pay US$160 million in installments to settle a tax dispute. Holohan subsequently took a temporary leave of absence in December.
Resolute said Holohan’s resignation is effective immediately. Acting CEO Chris Eger will now assume the role on a permanent basis, while interim chief financial officer, Dave Jackson has been made full-time, the company said.
Eger said last week that the ordeal in Mali was “the most challenging [time] the company has ever faced”. He added that the settlement agreement was a step toward “paving a path forward” for the company. However, efforts to reengage with the Malian government have been hindered, as officials remain preoccupied with discussions involving other mining companies, Eger noted.
West Africa squeeze
Shares in Resolute closed 0.7% lower on Monday in Sydney at A38¢, giving the company a market capitalization of A$789 million ($713 million). The stock has more than halved since October, when the fiscal landscape in Mali began to deteriorate..
Following the final payment of US$30 million to Mali’s government in December as part of Holohan’s release, the company reported cash and gold holdings of only US$101 million.
The Malian government, under military control since a 2021 coup, has pressured international miners, including Barrick Gold (TSX: ABX; NYSE: GOLD), B2Gold (TSX: BTO; NYSE-A: BTG), Allied Gold (TSX: AAUC), and AngloGold Ashanti (NYSE: AU), to contribute more under a mining code introduced in 2023. The code grants the government preference shares in mining projects and mandates an annual “foundation payment” to fund community development.
Syama expansion
Despite these challenges, Resolute remains focused on optimizing operations. In 2024, the company ramped up production at Syama and initiated the second stage of the mine’s development, which is expected to come online this year.
The Malian government holds a 20% stake in the project, which processes about 2.4 million tons of ore annually. However, Resolute has delayed some planned investments, including a US$100 million sulphide conversion project aimed at nearly doubling processing capacity to 4 million tons per year.
Beyond Mali, Resolute is giving priority to opportunities in Guinea and the Ivory Coast while navigating the increasingly complex political environment in West Africa. The company stated that its priorities for 2025 include “creating value in Guinea and the Ivory Coast and actively managing an increasingly complicated political landscape.”
What does actively managing an increasingly complicated political landscape?
Should unpredictable and risk adverse be included in the sentence ?
Are further funds likely to be siphoned off RSG profits?
Does RSG have a responsibility to state clearly to shareholders what they know, don’t know, are seeking to know and likely to know and understand?