This article first appeared in The Edge Malaysia Weekly on July 3, 2023 - July 9, 2023

It’s one problem after another for gold-mining company Bahvest Resources Bhd.

The latest is that the company’s gold-mining operation in Sabah has been sabotaged by unnamed persons, causing disruptions to its gold-mining activities. The company stated that several men had entered the site on June 22 and broken the bund wall, thus emptying the water used for operations.

Bahvest said the water gushing out onto the plant site had put a stop to gold-mining activities since the day of the incident. Management is evaluating the financial repercussions.

Already, Bahvest’s shares have taken a hit, tumbling the following day from 25 sen to close at 16.5 sen — down 34% in a single day.

Nobody knew the reason for the sell-down over the subsequent days until the company made an announcement on June 27, five days after the incident. According to Bahvest, a police report was lodged on June 26 and it made the announcement to Bursa Malaysia the following day.

Why was a police report lodged only on June 26 and not on the same day as the act of sabotage?

In the last one month, Bahvest has had more than its share of problems.

A boardroom battle seeking the removal of incumbent managing director and major shareholder, Datuk Lo Fui Ming, eventually fizzled out. However, a private company linked to Lo filed claims for damages against Bahvest for alleged encroachment into an area not related to its gold-mining operation.

Bahvest is one of a handful of listed gold-mining companies in Malaysia. Recently, it has drawn substantial interest due to its boardroom tussle and an investigation by the Malaysian Anti-Corruption Commission against its former directors because of alleged under-declared gold production figures. And now the company is saddled with sabotage.

Considering the slew of negative events surrounding the company, perhaps Bahvest should be proactive in releasing information on its operations? This is especially true when the share price falls by more than 30% in a day.

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