Who's next ???Gold mining CEO ousters could continue as boards grow frustrated with runaway costs
TORONTO — Two gold mining chief executives have been dismissed in less than a month, and no one would be surprised if more are shown the door soon.
The abrupt firings of Tye Burt from Kinross Gold Corp. and Aaron Regent from Barrick Gold Corp. show that investors and boards are fed up with management teams that can’t control runaway costs and capitalize on a strong gold market.
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These executives have spent billions of dollars on high-risk acquisitions and development projects in recent years, while simply failing to create value for shareholders. As gold miners put more focus on careful capital allocation and investor returns, boards want new people running the show.
“We interpret that lack of capital discipline and stock underperformance has reached a breaking point in the mining sector and we expect further management changes to come,” Deutsche Bank analyst Jorge Beristain wrote in a note.
full article: https://business.financialpost.com/2012/08/02/gold-mining-ceo-ousters-could-continue-as-boards-grow-frustrated-with-runaway-costs/