Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Excellon Resources (TSX:EX) Chief Financial Officer, Steve Poad, quit on Friday after the company reported a big drop in profits in the second quarter the day before.
The Canadian miner, which also declared force majeure at it’s the La Platosa silver, zinc and lead mine in Mexico, announced it earned net income of $478,000, or nil per share, in the three months ended June 30.
The Toronto-based company earned $8.1 million, or three cents per share, in the same quarter of 2011.
Revenues dropped to just under $14 million from $15.4 million.
Rupy Dhadwar, who has been with the company since 2010 and was Excellon’s corporate controller, replaced Poad.
No reasons were given for Poad’s resignation.
La Platosa
Criminal trespassing charges were laid soon after the blockade started a month ago at the operation located in the Mexican state of Durango.
Excellon urged the local government earlier in the week to remove the blockade or else it would have to declare force majeure, which relieves a company of certain contractual obligations.
“Despite that notice and the evident urgency of the situation, no actions were taken by authorities to prosecute the outstanding criminal charges and uphold the law,” the company said in the release.
