Mineral Resources says Chris Ellison probe did not need to be disclosed because it was ‘not price sensitive’

Hard-hit Mineral Resources has been looking into chief executive Chris Ellison for more than two years but reckons it was not obliged to publicly disclose the probe because it was not price sensitive information capable of hurting its shares. Though MinRes shares have regained ground in the past two days on disclosures by the board, the stock is still down 20 per cent since revelations 10 days ago that Mr Ellison dodged tax on co-owned offshore companies and allegedly profited on equipment sold to the listed mining and services group. Responding to questions from the Australian Securities Exchange, MinRes said on Tuesday the information did not need to be disclosed because the tax matters were the personal affairs of Mr Ellison and had been resolved with the Australian Tax Office, and the related payments by MinRes were made more than 15 years ago. As for the probe, MinRes revealed it had known of the ATO settlement since June 2022 and the allegations around the payments to Mr Ellison since October 2023. However, “it does not consider that the information that it engaged external legal counsel to conduct an investigation and advise the board to be materially sensitive” under the ASX’s continuous disclosure rules, it said. “Although the scope of a corporate investigation can include allegations that have the potential to be materially price sensitive if substantiated, the fact that external legal counsel has been appointed to conduct an investigation is, not of itself, materially price sensitive information,” MinRes said. Asked then to explain the plunge in its share price over the past week since it disclosed the probe, the group blamed “general media speculation, governance considerations and uncertainty regarding Mr Ellison’s ongoing leadership”. The group also noted “media speculation and coverage” around the corporate regulator’s decision to look into the matters and acknowledged that “there may be continued speculation until the board is able to determine matters”. MinRes also said on Tuesday that some media reporting of the tax issues were incorrect. “Contrary to recent media commentary the ATO has not issued any amended assessments to MinRes with respect to depreciation claims made on assets acquired from Far East Equipment (a co-owned Ellison company),” it said. “Mr Ellison did not agree to repay depreciation claims on behalf of MinRes, and no such amounts were repaid as part of, or in connection with, the voluntary disclosure of his private tax affairs.” The group broke a week-long silence with an update on Monday that revealed its intention to disclose the findings of the board probe by Monday. Mr Ellison, who is on leave overseas, has apologised for the tax evasion, describing its a “serious lapse of judgment”. Encouraged by the company’s statements over the past two days, MinRes shares added 7.1 per cent to $37 on Tuesday, but are still down 29 per cent for October.