IT was Chris Griffith’s decision to leave Gold Fields rather than the fallout of a major bust up with his board, said chairman Yunus Suleman.
Suleman added that Gold Fields’ strategy of finding a replacement deal for its failed tilt at Yamana Gold in November remained in tact, even though it might take up to 12 months to appoint a new, full-time CEO.
Interim CEO, Martin Preece, who is currently running Gold Fields’s South Deep mine, thanked the board for “the opportunity”, but said in response to a media question that he would “take the weekend” to decide whether he wanted to apply for the job full time.
“Our balance sheet is healthy and allows us the room to pursue these strategic options,” said Preece of Gold Fields’ immediate options. The delivery of the Salares Note project is timed for the close of the second quarter, he said of the $800m Chile project.
“We agreed the Yamana setback should not be allowed to impede the company’s strategy so as CEO Chris felt he should take responsibility and allow the company to move forward under new leadership unencumbered by the Yamana transaction,” said Suleman.
Suleman said headhunters had been dispatched to find a new CEO and that the board would also consider internal candidates.
Asked if the company, having lost up to two-thirds of its executive team in the last three months, was vulnerable to a hostile takeover, Suleman said: “I don’t think so.
“We are comfortable there won’t be any gap in the strategy. In essence, we believe we are in a strong position, we have a strong board and strong executive team and the company is performing very well.”
Said Preece: “We are fully committed to the strategy and well down the road. I’ve got full confidence we’ll continue as is.”
“We believe this is bad news for Gold Fields, as this sees the company lose a solid operator, raising questions about the company’s longer-term trajectory and likely weighing on the share price valuation for some time,” said Arnold van Graan, an analyst for Nedbank Securities.
He added that Griffith might not have been interested in conducting smaller, bolt-on merger and acquisitions as his core competence isn’t deal-making. “We also note that the CEO’s resignation comes shortly after three other senior executives resigned from the company. The timing is not ideal and will raise further questions, in our view,” said Van Graan.
Gold Fields’ executive team has been hollowed out. In addition to the departure of Griffith, the firm’s top legal executive, its head of strategy, and its head of corporate affairs have all announced decisions to leave the company by April.
Suleman said those executive positions were expected to be filled by April while Navishkar Nagaser, head of corporate affairs would continue in his role after April if required to do so, he said.
