BARRICK Mining is implementing a management overhaul and restructuring its regional operations as activist investor Elliott Investment Management acquires a significant stake in the Canadian gold producer.
CEO Mark Hill outlined the changes in an employee memo, announcing the departure of three senior figures, said Bloomberg News on Wednesday. The departures are Kevin Thomson from corporate development, Christine Keener, Barrick’s North American COO, and Kevin Annett who was CFO for the North American assets. They will be replaced by George Joannou, Tim Cribb and Wessel Hamman will assume their respective roles, said Bloomberg News.
The restructuring follows operational difficulties and cost overruns that have hampered Barrick’s performance despite surging gold prices, said the newswire. The company has also faced the seizure of a key Malian mine and three workplace fatalities this year. Former CEO Mark Bristow left abruptly in September.
Hill described safety performance as “deeply concerning” and operational delivery as “inconsistent”, adding that whilst the company’s fundamentals remain strong, current practices cannot continue.
The regional reorganisation will incorporate the Dominican Republic mine into North American operations, whilst consolidating Latin American and Asia Pacific divisions. Pakistan’s Reko Diq copper project will receive dedicated leadership under Chad Coulin as project director, with Gui Recena Costa leading Latin American operations.
The changes coincide with reports Barrick has explored a potential break-up into two listed entities. Newmont Corp. has reportedly studied acquiring control of the companies’ Nevada mining operations, said Bloomberg.
Barrick declined to comment on the restructuring.
Though Barrick’s shares have risen 119% over the past year, this trails the 131% average gain amongst gold sector peers as investors seek bullion as a safe haven.
