REG - Resolute Mining Ltd - Report on Payments to Governments

Resolute MiningAnnouncement

30/03/2022 15:00

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RNS Number : 6399G  Resolute Mining Limited  30 March 2022

Resolute Mining Limited

 

Report on Payments to Governments - Year ended 31 December 2021

 

1.    Purpose

Resolute and its subsidiaries (together, "Resolute") are engaged in extractive
operations as gold

mining concession holders in several locations across the world. This Report
provides a consolidated overview of the payments to governments made by
Resolute for the year ended 31 December 2021

as required under the UK Financial Conduct Authority's ("FCA") "Disclosure
Guidance and Transparency Rules" ("DTR").

This Report has been prepared in accordance with the rules enacted by DTR 4.3A
that require oil,

gas, mining and logging companies that have securities listed on UK-regulated
markets to annually

and publicly disclose any payments made to governments on a country-by-country
and/or project-by-project basis. These rules apply to Resolute by virtue of
its listing on the London Stock Exchange and Listing Rule 14.3.22R.

This Report has been filed and submitted to the FCA's National Storage
Mechanism (https://data.fca.org.uk/#/nsm/nationalstoragemechanism) and is also
available for download from https://www.rml.com.au/corporate-governance
(https://www.rml.com.au/corporate-governance) .

Basis of preparation

This Report has been prepared in accordance with The Reports on Payments to
Governments Regulations 2014 as enacted in the UK in December 2014, as amended
in December 2015 and Chapter 10 of EU Accounting Directive 2013/34/EU.

Payments to governments made by Resolute have been included in this Report.
However, payments made by entities where Resolute has joint control have been
excluded. Government includes any national, regional or local authority of a
country, and includes a department, agency or entity that is a subsidiary of a
government.

Payments to governments are required to be reported in the following
categories:

·        production entitlements

·        taxes levied on the income, production or profits of
companies, excluding taxes levied

on consumption such as value added taxes, personal income taxes or sales taxes

·        royalties

·        dividends, other than dividends paid to a government as an
ordinary shareholder unless they are paid in lieu of a production entitlement
or royalty

·        signature, discovery and production bonuses

·        licence fees, rental fees, entry fees and other
considerations for licences and/or concessions

·        payments for infrastructure improvements.

Payments included in the Report are amounts paid, whether in money or in kind,
for relevant activities. Where a payment or a series of related payments do
not exceed £86,000 they do not need to be disclosed. When preparing this
Report, a threshold of US$110,000 (approx. £86,000) was applied.

Payments made in currencies other than US Dollars are translated for this
Report based on the foreign exchange rate at the relevant monthly average
rate.

 

 

Report on payments to Governments

Table 1

Summary table showing payments to governments for the period ended 31 December
2021

 

 GOVERNMENT REPORT (IN USD)
            Dividend   Taxes          Royalties      Fees     Infrastructure Improvement  Total
 Countries
 Australia  -          570,567        -              -        -                           570,567
 Mali       -          93,231,273(2)  19,669,296(3)  62,852   1,804,552                   114,767,973
 Senegal    5,210,892  15,500,457     11,659,654     309,132  782,880                     33,463,015
 Total(1)   5,210,892  109,302,297    31,328,950     371,984  2,587,432                   148,801,555

Notes:

(1)   For the year ended 31 December 2021, Resolute did not make any
reportable production entitlement or bonus payments to any government.

(2)   During the year Resolute's subsidiary SOMISY, received a letter from
the Mali Tax Authorities notifying the company that they have offset VAT
receivables against previously recognised provisions for the tax years ended
31 December 2015 to 2018 amounting to $56.6 million.

(3)   During the year Resolute's subsidiary SOMISY, offset royalties payable
against VAT receivables of $16.8 million, the balance of the royalties above
was settled in cash.

 

 

Report on payments to Governments

Table 2

Government Payments split by project and payee for the period ended 31
December 2021

 GOVERNMENT REPORT (IN USD)
 Country / Project  Payee                                                             Dividend    Taxes        Royalties    Fees      Infrastructure Improvement  Total

 Mali:              Receiver General

- State of Mali

 Finkolo                                                                              -           -            1,975,097    -         -                           1,975,097

                    Receiver General                                                  -           5,441,195    -            -         -                           5,441,195

- District

                    Treasury - Mali                                                   -           92,254       -            -         -                           92,254
                                                                                      -           271,848      -            26,684    47,223                      345,755

                    Treasury - Sikasso

 Mali:              Receiver General

- State of Mali

 Syama                                                                                -           -            17,694,199   -         -                           17,694,199

                    Receiver General                                                  -           16,021,194   -            -         -                           16,021,194

- District

                    Treasury - Mali                                                   -           71,404,782   -            -         -                           71,404,782
                                                                                      -           -            -            36,168    1,757,329                   1,793,497

                    Treasury - Sikasso

 Senegal:           Receiver General

of Public Treasury

 Mako
(Ministry of Finance)

                                                                                      5,210,892   15,500,457   11,659,654   -         -                           32,371,003

                    Mining and

Geology Department

                                                                 -           -            -            300,000   -                           300,000

                    Kedougou Departmental and Tomboronkoto Municipal Administrations

                                                                                      -           -            -            9,132     782,880                     792,012

 Australia:         Australian                                                        -

Tax Office

 Corporate(1)                                                                                     125,670      -            -         -                           125,670

                    Perth Office                                                      -           444,897      -            -         -                           444,897

of State Revenue

 Total                                                                                5,210,892   109,302,297  31,328,950   371,984   2,587,432                   148,801,555

 

 

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