Sanctions Decision against Blackstone Resources AG

The Sanctions Commission of SIX Group AG has rendered a decision in the proceedings against Blackstone Resources AG for breaches of IFRS accounting standards and has issued a fine. The decision of the Sanctions Commission has not entered into force yet since Blackstone Resources AG has filed an appeal against the decision.

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On 2 February 2022, SIX Exchange Regulation AG (SER) informed the public about the submission of a proposal for sanctions to the Sanctions Commission of SIX Group AG (Sanctions Commission) against Blackstone Resources AG. SER’s sanctions proposal claimed that Blackstone Resources AG had incorrectly recognized the acquisition of the subsidiary South America Invest Ltd. and the resulting goodwill as well as disclosed incorrect information in connection with this acquisition in the 2019 interim IFRS financial statements and in the 2019 annual financial statements. Further alleged deficiencies refer to the consolidation of the subsidiary Troi Gobi LLC and the accounting for the sale of this subsidiary in the 2018 annual IFRS financial statements, 2019 interim IFRS financial statements and 2019 annual IFRS financial statements.

The Sanctions Commission substantially upheld the proposal for sanctions of SER concerning the alleged breaches of IFRS rules. As a result, the Sanctions Commission imposed, by decision of 22 March 2022, a fine against Blackstone Resources AG.

The decision of the Sanctions Commission has not yet entered into force because Blackstone Resources AG has filed an appeal against the decision.

Due to the market manipulation and violations of disclosure obligations meanwhile discovered at Blackstone Resources AG by FINMA according to the press release of 12 April 2022 and because of the expected prolonged duration of appeal proceedings, the public is hereby informed by SER about the sanctions decision regardless of its legal force on the basis of Ciph. 6 para. 9 of the Rules of Procedure in order to ensure transparency.

If you have any questions, please contact
Hrvoje Tkalcec, Head Communications & Media Relations.
Phone: +41 58 399 2267
Email: ser_media@six-group.com

SIX Exchange Regulation AG is a legally independent company of SIX Group and of one the Regulatory bodies of the SIX trading venues. It performs the functions assigned under Swiss federal law and enforces the rules laid down by the Regulatory Board, and monitors compliance with legal and regulatory requirements. As part of its diverse remit, SIX Exchange Regulation AG submits proposals for sanctions to the Sanctions Commission or can enact sanction notices. SIX Exchange Regulation AG consists of the divisions Listing & Enforcement, responsible for regulating issuers, and Surveillance & Enforcement, which monitors trading.
www.ser-ag.com

SIX provides and operates stable and efficient infrastructure for the Swiss and Spanish financial centers, thus ensuring access to the capital markets and the flow of information and money between financial market players. As a global provider of financial information, SIX delivers high-quality reference, pricing, corporate actions, and ESG data and provides regulatory services and indices to clients around the world. The company is owned by its users (more than 120 banks) with a workforce of 4,160 employees and a presence in 19 countries.
www.six-group.com

Media Release

Sanctions Decision against Blackstone Resources AG