African Eagle Resources warns on tax review as CFO steps down

Shares in African Eagle Resources dropped on Tuesday after the company announced the departure of its Chief Financial Officer.

Shares in African Eagle Resources dropped on Tuesday after the company announced the departure of its Chief Financial Officer.

David Newbold has left the board of directors, but will continue in the role of Chief Financial Officer for a transitional period of six months.

The group said it expects that its Group Financial Controller will assume Newbold's responsibilities at this point.

Investors were also put on alert by the news that, following a company-initiated internal review, the Tanzanian Revenue Authority has also undertaken review of the company's previous tax filings.

The group warned that "there can be no assurance that the company will not be subject to material assessments with respect to prior years".

More positively, Africa Eagle also said that it is searching for a strategic partner to aid the development of the Dutwa Nickel Laterite Project in Northern Tanzania, and as part of this has signed a number of confidentiality agreements.

A data room has also been established and the interested parties are working through the available documentation.

The group stressed that it is now planning to effectively manage its resources and revise the near term focus of its development activities, which will result in a reduction in the costs of its operations and optimise financial resources in the near term.

In a statement the company said: "The Dutwa Nickel Laterite Project is an attractive project due to its favourable mineralogy which allows nickel extraction using straightforward atmospheric tank leaching instead of the complex high pressure acid leaching as required for most nickel laterite projects."

The share price fell 11.76% to 1.12p by 13:11. The stock has lost nearly 75% of its value over the past year.

NR

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Nuclear power might never be popular – but now looks a good time to invest
Commodities

Nuclear power might never be popular – but now looks a good time to invest

Nuclear power gets a very bad press, but it is the ultimate renewable energy source. Interest in it is perking up again, says John Stepek. Which means…
9 Apr 2021
How to find companies that can thrive in the post-Covid world
Advertisement Feature

How to find companies that can thrive in the post-Covid world

Many sectors of the global economy will return to something resembling pre-pandemic status, but others will take far longer to recover.
8 Apr 2021