African Barrick adds to CEO departures

This week saw another change in top management at a major gold producer, this time at Tanzania’s largest gold company, African Barrick Gold (LSE:ABG). 

ABG said on Wednesday that Australian Bradley Gordon, formerly with Intrepid Mines (TSX:IAU), will man the company tiller, taking over from Greg Hawkins who has “resigned to pursue other opportunities.”

The CEO switch follows African Barrick’s failure earlier this year to sell a 75 percent stake of the company to China National Gold Group after talks collapsed in January.

The CEOs of Kinross (TSX:K, NYSE:KGC), Barrick (TSX:ABX, NYSE:ABX), Newmont (NYSE:NEM) and AngloGold Ashanti (NYSE:AU) have all exited the corner office in recent months amid a falling gold price and escalating costs.

In a commentary, Mineweb’s Lawrence Williams interprets Hawkins’ resignation as fallout from ABG’s poor performance since it was spunoff from parent company Barrick Gold and listed on the London Stock Exchange three years ago:

“Thus, Hawkins is the latest gold mining company CEO to be ousted, in this case to see if new blood can revitalise the ailing African gold miner. 

African Barrick stock has lost 73 per cent of its value since its launch in 2010 and, although part of this fall is attributable to the plunging gold price and so outside management control, Hawkins is seemingly carrying the can for the company’s continual underperformance,” Williams wrote
Source: Gold Investing News, reported by Andrew Topf
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