The Mali Government tax department has advised that, based on advice from the government department responsible for customs and exports, it believes the revenue from gold sales for 2017 should be US$146.9 million.
So FFX has stated " In 2017, the mine produced approximately 70,000 ounces of gold and sold 67,612 ounces of gold for net revenue received of US$92.65 million. "
=USD 54.25 million or AUD 70.75
Corporate Tax @ 30% = AUD 21.25 million Royalty @8% = AUD 5.66 million
Total = AUD 26.885 million.
Now I am guessing that if Mali Govt is disputing the tax paid then you can also reasonably assume that the tax offsets the company believes it has (just like it believed it had paid 2017 tax) is potentially at question.
AUD 26.885 million divided by Mkt Cap of 152 million = 17.79% of FFX market cap is owed.
Most accountants measure materiality at 5% so 17.79% is in my opinion massively material.
Good luck reading through Daza but I know you like to be thorough and wishful thinking will not help here.
Please note FFX has made no ASX announcement to state this issue has been resolved.
FFX has also not made any ASX announcement to state that 2018 / 2019 / 2020 tax years will not be reviewed or potentially revisied.
Good luck everyone and have a terrific weekend.
FFX Price at posting:
19.5¢ Sentiment: Sell Disclosure: Not Held