- Chief executive John Welborn has stepped down
- Company looking for new boss that can make operational improvements
Gold mining boss John Welborn has left the top job at Resolute Mining (RSG) after five years. The company announced his departure on Monday, effective immediately. Chairman Martin Botha said it was the right time to bring in a new boss to “deliver improvement in operational outcomes and resilience”.
Unlike other gold miners, Resolute’s share price is flat year-to-date, falling sharply since mid-year after a coup in Mali, home to Resolute’s most important mine.
Under the former Australian rugby international’s leadership, Resolute shifted more to a West Africa-focused miner and built the Syama underground operation in Mali. Mr Welborn will be replaced on an interim basis by finance chief Stuart Gale.
The company had significant operational problems in 2019, with costs soaring after a processing plant issue. But in the first half of 2020 Resolute kept to guidance for the year and saw a 24 per cent uptick in production, to 218,000 ounces (oz) of gold. All-in sustaining costs were up 23 per cent in the first half, however, to $1,020 an oz.
Resolute listed in London last year, although its trading volumes have stayed very low compared with its Australian listing. Buy.
Last IC View: Buy, 60p, 16 Jan 2020
