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.
Canada’s Iamgold (TSX: IMG) (NYSE: IAG) has appointed Renaud Adams as its new President and chief executive officer, effective April 3.
Adams replaces board chair Maryse Belanger, who was acting as interim President and CEO during the executive search process.
The Toronto-based gold miner has also named Maarten Theunissen as permanent chief financial officer, having served as interim CFO since September.
Adams has more than 30 years of global mining experience in senior executive positions and operations, most recently as President and CEO of New Gold during from 2018 to 2022. He was also the President and CEO of Richmont Mines from 2014 until the company was sold to Alamos Gold in 2017.
Iamgold’s management and board were shaken up in January 2022, with the sudden departure of top boss Gordon Stothart, followed a month later by board chair Don Charter.
The company also kicked off conducting a portfolio of assets review, as part of a strategy that prioritises return on investment and cash flow generation.
The goal, Iamgold said at the time, was to ensure the delivery of Côté – a tier-one, generational asset in Ontario, Canada, which is expected to come online in early 2024.
The company in December secured funding to finish the project, by amending its existing joint venture agreement with Japan’s Sumitomo Metal Mining.
As part of the deal, Sumitomo committed to contribute about $340 million over the course of 2023. In exchange, Iamgold will transfer an approximate 10% interest in the project to Sumitomo.
Iamgold will retain a repurchase option that can be exercised until December 2026 to return to its full 70% interest in the gold project. The company has remained as the mine operator.
