Mali hostage ordeal ends in exit for Resolute Mining CEO Terry Holohan

Resolute Mining boss Terry Holohan has called time on his tenure at the Africa-focused gold play.

Mr Holohan was due to return to his role as chief executive this week after taking time away following his release by Mali’s ruling military junta who held him — and two other Resolute executive — captive for almost two weeks over a tax dispute.

Resolute reached a tax settlement deal that cost it more than $250 million to secure the trio’s release in late November.

The company announced just a few weeks later that UK national Mr Holohan would take leave until the end of January to spend time with his family.

But in an update to the Australian Securities Exchange on Monday — which was devoid of any personal statement from Mr Holohan — the company said it was now discussing the terms of a proposed settlement to end his employment.

The news sent shares in Resolute tumbling more than 7 per cent to 38.2¢ at 9.15am. They have struggled to regain much ground since the ordeal wiped more than a third from the company’s market value.

Resolute was the latest in a string of miners to be caught up in the impoverished nation’s attempts to squeeze more money from foreign players by pressuring them to renegotiate agreements under threat of losing their operating licences.

Chief financial officer Chris Eger — who has been acting CEO during Mr Holohan’s absence — will take on the top job permanently and will join the board.

Group financial controller Dave Jackson, who had been filling in for Mr Eger, becomes the miner’s new CFO.

Resolute chair Andrew Wray said Mr Holohan had played an important role and improved operational performance across the business.

“We thank Terry for his contribution, and we wish him all the best for the future,” Mr Wray said.

“In Chris and Dave, we have a team who have worked closely with Terry over the last two years and have the expertise and knowledge to help realise the full potential of our assets for the benefit of all stakeholders.”

The dual-listed precious metals miner operates the Syama gold operation in Mali. It has so far paid $US160m ($260m) to Mali’s military government under the terms of the settlement that freed its executives.

Mr Eger told investors at a results presentation late last week that Resolute had not locked in a new mining code with the country’s officials, punting back talks amid wider negotiations across the industry.

“We are rebuilding the relationship with Mali,” he said.

“But we’re being extra vigilant to how the overall politics in West Africa evolve.”

When a deal is inked, it would be expected to add about $US250 per ounce to Resolute’s all in costs profile.

Resolute posted unaudited revenue of $US800m through the year amid a strong global gold price.

“From an operational and cash generation perspective 2024 was one of the strongest years Resolute has had in recent times,” Mr Eger said.

“The operations at Syama continue to perform extremely well.”