- Kenmare Resources warned that if Industrial Free Zone (IFZ) benefits are removed, VAT on heavy mineral concentrate (HMC) transfers, power, and fuel could create a working capital cash outflow of approximately $25–$40 million per year.
- There is increased VAT and working capital risk due to uncertainty over the renewal of the Implementation Agreement (IA) with the Mozambican government.
- The company is accruing but not paying higher VAT rates pending agreement, as the Mozambican Tax Authority has started invoicing at higher rates.
- Loss of IFZ status could also expose Kenmare to additional VAT liabilities and timing issues, impacting cash flow.
Source: marketbeat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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