Dougherty One can only speculate about Dougherty’s dismissal, but if I were a betting man, it’s likely the board and CEO being at loggerheads. Sounds like the street knew about the Magino cost overrun. One analyst stated some hedge funds were circling - just waiting for the announcement to pound the stock. Obviously the cost overruns aren’t Dougherty’s fault, so there’s no way that could be blamed on him. It’s a shame having AR without Dougherty guiding it as really Argonaut really was his baby. From when I bought in about 8 years ago, he built it from an 80,000 oz producer to the current 1/4 million and counting. He was key in the Alio merger, but I feel his major feat was masterminding the acquisition of AR’s crown jewel, the magino deposit. He got it from Prodigy Gold for essentially a song. And for all that he gets a boot in the pants.
What’s most amazing about the whole affair is the overreaction. Not counting their asset base, AR is currently generating a free cash flow of 100 million a year. A monkey could walk into a bank and get financing to complete the project.
My best guess is that Dougherty may of spurned a recent takeover proposal. The board may of wanted to cash out and knew what would happen to their shares with the announcement. If that was the case they made him walk the plank. That’s my take on it. Any others want to speculate or blow holes in the above, please feel free.