Mineral Resources Drops 13.8% Amid Tax Evasion Allegations Investigation

Highlights:

• Mineral Resources stock plunges 13.8%: Shares dropped to $39.55 following tax evasion allegations against Managing Director Chris Ellison.
• Board stands by Ellison: Despite the accusations, the board expressed “full confidence” in his leadership amid the investigation.
• External legal counsel engaged: Mineral Resources has hired external legal experts to investigate the allegations and advise the board on the next steps.

Mineral Resources Limited (ASX: MIN) saw its stock plunge by 13.8%, closing at $39.55, as the company addresses serious tax evasion allegations surrounding its Managing Director, Chris Ellison. At the time of writing, the company’s share price has continued to decline following these revelations.

Board Expresses Confidence in Leadership

Despite the significant drop in share value, the board of Mineral Resources has released a statement expressing “full confidence” in Chris Ellison’s leadership. The statement comes after an investigation by The Australian Financial Review alleged that Ellison had been evading taxes for years. The board emphasized its ongoing support for Ellison while acknowledging the gravity of the allegations.

Legal Counsel Engaged for Investigation

In response to the allegations, Mineral Resources has taken steps to engage external legal counsel. The legal team is tasked with conducting an independent investigation into the claims and providing advice to the board on how to proceed. The company is committed to transparency and cooperation throughout the process, ensuring that any legal or ethical issues are thoroughly addressed.

Investor Reaction and Market Impact

At the time of writing, the market has responded sharply, with the company’s shares falling by 12.8%, reflecting investor concerns over the potential impact of the investigation on the company's leadership and future operations. Mineral Resources remains a key player in the Australian mining sector, but the ongoing investigation could have further implications for its stock performance.

Investors and analysts alike will be closely watching the outcome of the investigation, with many waiting to see how the board and management will navigate this significant challenge.

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