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KOTA KINABALU: AuMas Resources Bhd, formerly known as Bahvest Resources Bhd, has successfully navigated a tumultuous period of corporate instability to emerge as a profitable and well-managed gold producer under new leadership. This transformation marks a significant turnaround for the company, which is now poised for sustainable growth in the competitive mining sector.
Corporate Restructuring and New Leadership
The pivotal change in AuMas’s fortunes began with the departure of its previous shareholders and management team. In the wake of this transition, the company implemented stringent Standard Operating Procedures (SOPs) across its mining and corporate operations. This restructuring, led by a new management team, has been crucial in restoring stakeholder confidence and enhancing operational efficiency.
AuMas operates the Bukit Mantri gold mine in Tawau through its wholly-owned subsidiary, Wullersdorf Resources Sdn Bhd (WRSB). The mine is now functioning at full capacity, producing gold doré bars monthly, a testament to the effectiveness of the new management’s strategies.
Financial Highlights
The fiscal year ending September 2024 has yielded impressive financial results for AuMas. Key highlights include:
Gold Production: 490 kg of doré
Net Profit: RM32.5 million
Dividends Distributed: Over RM27 million
These figures reflect not only the operational success of the Bukit Mantri mine but also the financial acumen of the new leadership.
Clarifying Ownership History
In light of recent media reports containing alleged inaccuracies, AuMas has provided clarifications regarding the ownership and operations of the Bukit Mantri mine. The mine is located on a 1,000-hectare land parcel in Tawau, originally leased to Southsea Gold Sdn Bhd (SGSB) for 35 years on December 23, 2014. Subsequently, SGSB sub-leased 317.7 hectares to WRSB on October 1, 2015.
Bahvest Resources Bhd (now AuMas) acquired full ownership of WRSB on January 13, 2017, during which time Datuk Lo Fui Ming was a substantial shareholder and executive director.
MACC Probe and Leadership Overhaul
The company faced significant challenges when Datuk Lo Fui Ming and five other executives were arrested by the Malaysian Anti-Corruption Commission (MACC) on May 16, 2023, over allegations of royalty evasion and document falsification related to gold doré sales. This incident prompted a board reshuffle, leading to Lo’s exit from the company on May 31, 2023.
A new management team took control on June 1, 2023, and conducted an internal investigation that revealed 41 gold doré bars produced between 2019 and May 31, 2023, were unaccounted for in official sales records. A police report was filed on May 28, 2024, to investigate the missing gold doré bars.
Regulatory Compliance and Corporate Rebranding
As part of its governance reforms, AuMas has collaborated with various government bodies, including the Sabah State Land Office and the Department of Mineral and Geoscience (JMG), to establish SOPs for gold production, smelting, and sales. The new management has also settled RM11 million in unpaid royalties owed to the Sabah government for 2021 and 2022.
In December 2024, the company underwent a rebranding, transitioning from Bahvest Resources Bhd to AuMas Resources Bhd, symbolizing a fresh start and commitment to excellence.
Tax Compliance and Ongoing Investigations
The Inland Revenue Board (LHDN) recently concluded its review of AuMas and cleared the company of any tax irregularities since the new management took over. However, tax liabilities associated with the 41 unaccounted gold doré bars from the previous management period are currently under investigation.
Official Statement on Shareholder Involvement
In response to false allegations, AuMas has clarified that Datuk Freddy Lim is not involved in the company’s day-to-day operations or management. The company confirms that none of its substantial shareholders participate in the management or operations related to gold doré sales.
Commitment to Transparency
AuMas Resources Bhd reaffirms its commitment to transparent governance, operational excellence, and regulatory compliance. The company encourages media outlets to verify information directly with its management to ensure accurate reporting.
In conclusion, AuMas Resources Bhd is on a promising trajectory, demonstrating resilience and a commitment to ethical practices in the mining industry. With its new leadership and robust operational strategies, the company is well-positioned for future growth and success.
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