Kinross dumps CEO
After seeing its share price halved in the past year, the Kinross Gold (TSE:K) board decided to remove Tye Burt and promote Paul Rollinson from Executive Vice-President, Corporate Development to CEO.
Rollinson will also replace Burt on Kinross’s board of directors.
In the last year, Canada’s number three gold producer by output has lost nearly $9 billion in market capitalization as the stock has tumbled 50%.
In making the announcement the board said it was looking to Rollinson to focus “. . . on the implementation and oversight of the comprehensive capital and project optimization process that was announced by the Company on January 16, 2012.”
“The objective of this process is to improve capital efficiency and investment returns while optimizing the Company’s major projects at Tasiast, Lobo Marte and Fruta Del Norte. The Board has also determined that a change in CEO is required to guide Kinross through this capital and project optimization process.”
Kinross has suffered a series of setbacks, a work stoppage at its Tasiast mine in Mauritania, West Africa this spring.
At the start of the year it announced a $2.5 billion writedown in connection with the Red Back acquisition, which Burt had championed in 2010.
The board thanked Burt for his contribution to the firm. Rollinson made a brief statement.
“I am honored to accept the opportunity to lead Kinross. The Company has many strengths and great assets, including outstanding people at all of its operations, development projects and corporate offices,” said Rollinson in a statement.