If you thought the Mineral Resources Ltd (ASX: MIN) share price was due for a break today, think again.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium miner and diversified resources producer closed yesterday trading for $35.9. In early afternoon trade on Friday, shares are changing hands for $34.13 apiece, down 5.0%, with shares having traded as low as $33.23 in earlier trade.
It was only back on 7 October that the ASX 200 mining stock closed at $53.54 a share.
Meaning the Mineral Resources share price is now down a painful 36.2% over three trading weeks.
Here's what looks to have investors favouring their sell buttons again today.
What's pressuring the Mineral Resources share price?
ASX 200 investors are bidding down the Mineral Resources share price amid fresh allegations of dodgy executive transgressions reported by The Australian Financial Review.
According to an invoice obtained by the AFR, Mineral Resources founder and managing director Chris Ellison and former company director Tim Roberts bought $343,000 worth of mining equipment from Mineral Resources at a sharp discount to going market prices.
The two men were reported to have bought the equipment – including tractors, excavators, generators and utes – from the miner's PIHA subsidiary in July 2017. The machinery was sent to a large rural property co-owned (and since sold) by Ellison and Roberts, located on New Zealand's South Island.
The discounted sales transaction was approved by the company's then-chairman Peter Wade.
This appears to contradict a previous statement from Roberts, who said:
At no time was plant and equipment purchased at undervalue from a subsidiary of Mineral Resources Limited. At no time did I request Mineral Resources Limited to supply plant and equipment at a discount.
Insult to injury
As you're likely aware, the Mineral Resources share price was already under heavy selling pressure in the wake of Ellison's alleged offshore tax evasion bombshell.
The Australian Securities and Investments Commission (ASIC) is investigating whether Ellison may have failed to properly report revenues for a number of companies registered in the British Virgin Islands.
These companies were employed to buy mining equipment. The alleged transgressions involving the sales of equipment occurred more than 20 years ago when Mineral Resources still operated as a private entity.
A contrite Ellison stated, "This was a poor decision and a serious lapse of judgment… I deeply regret and apologise for these actions and have since ensured that I have put the matter right with the ATO."
Facing further pressure from a weak lithium market and an uncertain iron ore demand outlook, the Mineral Resources share price is down 43% over 12 months.
