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Sallies boss quits as firm fails to improve Posted: Wed, 03 Oct 2007 [miningmx.com] -- THE sudden resignation of Sallies CEO, Izak Marais, is the latest twist in the saga of the struggling fluorspar producer which operates the Witkop mine near Zeerust in North West Province. Marais has been running Sallies since November 2005. He has been replaced by non executive chairman Tom Dale. Another Sallies non-executive director with whom Dale has close ties - Johann Blersch - has been appointed executive commercial director. The Sallies share price has collapsed this year from a high of 149c at the end of January to 52c in mid-September from which had recovered to 65c by Wednesday’s trading close. The company is currently embroiled in a legal battle with former major customer Honeywell which has gone to arbitration in Zurich, Switzerland. Honeywell is claiming $6.8m in damages for breach of contract after Sallies terminated its sales contract with Honeywell. Sallies is claiming $1m from Honeywell for fluorspar delivered in terms of that contract but which has not been paid for. The company has delayed publication of its results for the year to June 30 - which should have been out by the end of September - to the second half of October citing delays caused by a change of auditors as well as the impact of a strike at the Witkop mine. Sallies has been losing money for the past two years and Marais said in a statement: "The on-going losses being suffered by shareholders warranted a change at the helm." Speaking on the Moneyweb Power Hour, a week nightly radio programme, Marais said the resignation was purely his decision. "It was my strategic decision to resign, I was not fired," he commented. Marais added: "Sallies has seen a lot of activities including the Honeywell issue but despite everything we have done, we have, to this point not managed to turn the company around and I felt that the company needed some new blood, a fresh person to take it forward." Even so, the sudden departure of a CEO is unusual and is normally triggered by an exceptional event. That could involve, for example, irreconcilable differences with the chairman. Asked about that possibility Dale said there was no friction between himself and Marais. Dale is a former MD of Gold Fields with a tough reputation. Despite his position as non-executive chairman he made it clear to financial media in June that he intended getting heavily involved in the operational aspects of the business. Said Dale: "I told shareholders in June when I was appointed that, if I felt I was failing, then I would fall on my sword. I don’t know if Izak decided to take his lead from that." Dale said he would be the full-time CEO and a new non-executive chairman for Sallies would be sought. Click Here to subscribe to our daily newsletter
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