ACACIA share fell by 8.0 per cent yesterday after the second probe team revealed its finding that accused the Dar es Salaam cross-listed firm of operating illegally and tax dodging.
Dar es Salaam Stock Exchange statistics showed the mining firm share dropped to 7,790/- yesterday from 8,460/- closed last Friday. Market analysts said the share are affected by the report outcomes that showed the firm was under declaring gold concentrate shipped abroad.
“Anything regarding under declare affects future prospect of a firm as it is going to reduce profit margins thus dividend and earning per share,” analyst told 'Daily News'. The analyst said since both reports showed under declaring of gold sand automatically investors are losing confidence.
“I am expecting the share will fall further…but should the second probe team came up with not damning report, the share would roll coaster,” analyst said. The second investigating team presented their findings based on the historical economic and legal aspects of the export of metallic mineral concentrates.
The team said Acacia is operating in the country without having proper registration documents and was under declaring revenue and tax payments of the number of years by tens of billion. Acacia, however, said in a statement that they strongly refute these “new unfounded accusations”.
“We have always conducted our business to the highest standards and operated in full compliance with Tanzanian law,” the firm statement said. However, President John Magufuli said he has left negotiation door open with the firm regarding payment of the under declared tax and way forward.
Acacia also said it remains open to further dialogue with the government regarding this issue and continues to assess all of its options. “Acacia has long sought to be a partner with the government of Tanzania as we believe that we have similar goals in enhancing social and economic development in the country.
“However, this partnership must be based on fairness for all stakeholders,” the firm statement said. Share in Acacia plunged over 30 per cent after the first probe team revealed its finding a month ago to around 8,500/-. And experts believed the share could have fallen more if the president closed the discussion door with Acacia.