The worst performer on the S&P/ASX 200 Index (ASX: XJO) on Wednesday has been the Resolute Mining Limited (ASX: RSG) share price by some distance.
The gold miner's shares crashed as much as 20% lower to $1.08 today.
At the time of writing, they have recovered a touch but remain down a disappointing 17.5% to $1.11.
Why is the Resolute share price crashing lower?
Investors have been selling Resolute shares on Wednesday amid concerns over events that are unfolding in Mali.
According to the ABC, Mali's President has announced his resignation on state television and will dissolve the country's parliament. This is just hours after mutinying soldiers detained President Ibrahim Boubacar Keita and a number of top officials from his government.
This news has led to the Economic Community of West African States (ECOWAS) closing their borders with Mali. ECOWAS has also stated that it will be suspending all financial flows between its 15 members and Mali and suspending Mali from its decision-making bodies.
How does this impact Resolute?
This development has the potential to impact Resolute due to its key Syama Gold Mine in the country.
During the June quarter the Syama operation contributed 63,705 ounces of gold production. This represents 59.4% of its total production of 107,183 ounces during the quarter.
Any potential disruption to its operations would clearly have a material impact on its future production. Though, it is worth noting that at this stage, this hasn't been the case. And this could remain the case in the future depending on what government is formed in the coming months.
But given the mutiny and the uncertainty about what lies ahead, I can't say I'm surprised to see Resolute's shares come under pressure today.
Resolute operational update.
This afternoon the company responded to the news with a brief announcement.
Management advised that: "[Resolute] is closely monitoring developments in Mali following the resignation of President Ibrahim Boubacar Keita. The resignation of the President, and the subsequent dissolution of the government, follows action by sectors of the country's military seeking to resolve the recent political crisis."
"Operations at the Company's Syama Gold Mine, located in the south of Mali on the border with Côte d'Ivoire, are continuing as normal with no impact to production or the safety and security of employees and contractors. Resolute has operated Syama since 2003 under the well-established mining laws of Mali," it concluded.
