Lundin Mining Corp. (TSE: LUN) chief executive Peter Rockandel is stepping down at the end of the year, and will be succeeded by Jack Lundin, son of the company’s founder, in a move that put pressure on the company’s share price.
After he leaves, Mr. Rockandel, a former longtime investment banker with GMP Capital Inc., will have been at the helm of Lundin for just over two years.
Shares in Lundin were down by 5% in early afternoon on the Toronto Stock Exchange on Tuesday, the worst performer of the 50-member TSX Materials Capped Index.
Mr. Rockandel said in an interview his departure was a “mutually agreed upon decision” with the board. While he was willing to stay on as CEO for a few more years, the move from Toronto to Vancouver had been difficult for him on a personal front because his family remained in Ontario.
The change at the executive role at Lundin also comes after a period when the company had made a series of changes in its senior leadership ranks, particularly at the vice-president level.
“Whenever there is change regardless, people always get a bit nervous,” Mr. Rockandel said.
“Now we need to go out and speak to our investors, and speak to the analysts, and make sure everybody understands the company is doing fantastic.”
With Jack Lundin taking the executive role, two brothers are set to split the key officer positions at the company. Jack’s brother Adam is currently chairman of Lundin.
Mr. Rockandel said that any worries over a potential power struggle between the brothers are unwarranted because they are “fairly aligned in how they approach business.”
Under Mr. Rockandel’s s tenure, Lundin also added three independent directors which has beefed up its governance.
“That’s where the checks and balances would come in,” he said.
Earlier in his career, Jack Lundin worked at Lundin Gold Inc., where he oversaw the construction of the Fruta del Norte gold mine in Ecuador. He also served as CEO of Bluestone Resources. He has been president of Lundin Mining since last December.
Lundin Mining is part of a vast network of mining, oil and gas, and renewable energy companies that fall under the Lundin Group of companies, which was founded by Lukas Lundin, Jack and Adam’s late father. Lukas died last year at the age of 64 from cancer.
The Lundin family is the biggest shareholder of Lundin Mining, holding a 15.4% stake in the company.
Lundin Mining produces copper, zinc, gold and nickel from operations in Argentina, Brazil, Chile, Portugal, Sweden and the United States.
In a statement, Adam Lundin said that under Mr. Rockandel’s leadership Lundin had improved its operational and financial performance, including recently buying a majority stake in the Caserones mine in Chile, and overseeing a move in the company’s head office to Vancouver from Toronto.
Mr. Rockandel became CEO in November, 2021, and succeeded Marie Inkster who held the top executive spot for three years.