Settlement Agreement Robex had recorded a provision of $43,000,000. Since the settlement amount is $33,000,000, the adjustment to net income will be positive by ~$10,000,000.
Of this ~$33,000,000, ~$11,000,000 will be reimbursed from a VAT credit, owed by the state. As for the balance of ~$22,000,000, it will be reimbursed from Nampala's next operating profits. Necessarily, there is money coming out, but it will be gradual and without excessive pressure on the cash flow.
This tax adjustment is final, and concerned the years prior to 2024. I estimate that the financial consequences for the years to come will be less than $10,000,000/year. Considering Nampala’s production capacity and the cost of extracting gold, this regulation and the terms of the new mining code will not prevent Nampala from generating very good profits, and from financially supporting the new flagship project, Kiniero.
That said, we like Nampala, but it remains an asset that is not essential for Robex.