Barrick Mining Corp. slumped in pre-market trading after the Canadian miner posted a net charge of $1.04 billion related to the seizure of its vast Loulo-Gounkoto gold complex by Mali’s military junta.

The loss was due to “the deconsolidation of Loulo-Gounkoto following the change of control,” the company said in a second-quarter earnings report on Monday. The impact on earnings was partly offset by a gain of $745 million on the sale of its 50% interest in the Donlin Gold project in Alaska.

Barrick’s woes in Mali escalated in June when a court ruled that management of one of the miner’s biggest operations should be handed over to a state-appointed accountant and former health minister for six months.

A dispute over mining proceeds has already seen Mali detain four Barrick employees and block gold exports from the mine, which the company shuttered in January. The standoff means the world’s No. 2 gold producer has been unable to fully capitalize on bullion’s record-breaking rally.

The forced writedown of Loulo-Gounkoto “reinforces the company’s challenge in regaining control,” Bloomberg Intelligence analysts Grant Sporre and Emmanuel Munjeri wrote in a note. “The writedown threatens to overshadow Barrick’s operational improvements at key assets, robust cashflow generation and declaration of a 5-cent performance dividend,” the analysts said.

Barrick is still up by around 50% this year, boosted by a powerful rally in gold prices that saw the precious metal hit a record high of $3,500 an ounce in April. The VanEck Gold Miners exchange-traded fund has gained about 70% over that period.

“While the market hasn’t fully recognized the value we have and are creating, our performance and growth are clear,” Chief Executive Officer Mark Bristow said in the earnings report.

The shares slumped as much as 5.7% in pre-market trading in New York, before paring losses.