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Barrick Gold Corp. is losing its second long-time leader, the largest gold company in the world apparently surprised by his departure.
After 16 years in Barrick, Kelvin Dushnisky leaves his position as president His departure comes at a time when Barrick is struggling with a dwindling base of reserves, locked in a geopolitical stalemate in Tanzania and struggling with a price tag. Flat gold. 19659004] History Continues Under Advertisement
Barrick did not announce a successor for Mr. Dushnisky on Monday, saying he will appoint one in a timely manner.
"Uncertainty surrounding the change in direction could weigh on Barrick's shares," wrote Stephen Walker, an badyst at RBC Dominion Securities Inc., in a note to clients on Monday.
Barrick Stocks , down 13% this year, fell 4.3% on Monday to close at $ 15.54 each.T Toronto Stock Exchange
A lawyer by training, Mr. Dushnisky, age 55, joined Barrick in 2002 as Director of Regulatory Affairs, after holding management positions at EuroZinc Mining and Sutton Resources, and slowly rising to the ranks of Barrick and co-chairing Jim Gowans in 2014. In 2015 , he was named sole president after Mr. Gowans' departure.
"No one is as good at relationship building," Gowans said in an interview on Monday
. congratulated Mr Dushnisky on his efforts to establish trust and sustainability "with governments, communities and shareholders. At the annual general meetings, it was Mr. Dushnisky, not Mr. Thornton, for example, who took issues sometimes furious directly from the shareholders. Mr. Dushnisky interacted primarily with the badysts during question and answer sessions during the quarterly conference calls
. Despite his senior position at Barrick, Mr. Dushnisky was significantly lower than Mr. Thornton in Barrick's hierarchy and some say it caused tension. . Shortly after joining the management team in 2014, Thornton eliminated the CEO position after Jamie Sokalsky left, and effectively consolidated himself into the number one position of power. Mr. Thornton is known for making all important decisions within Barrick, including entering into agreements to sell various secondary mines in recent years and forging strategic alliances with, for example , the Chinese to team acquisitions or the construction of new mines. Mr. Thornton is also Barrick's highest employee, with $ 7.7 million last year. By comparison, Mr. Dushnisky earned $ 4.2 million
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M. Mr. Gowans, who is now CEO of Arizona Mining, remembers the role of co-chair as being "stressful" for Mr. Thornton in 2014, especially as Barrick struggled with a huge debt of 15 billion US dollars. as a result of the stop of the construction of a mbadive mine in South America.
Unlike Barrick, at AngloGold Ashanti, Mr. Dushnisky will occupy the position of senior executive and will be able to make his mark on the company
. It needs a new challenge, and it's a good challenge, "said Mr. Gowans.
AngloGold Ashanti is the third largest gold mining company in the world by producing, mining 14 mines in 10 countries.It produced 3.8 million ounces of gold last year, and only the American miner Newmont Mining and the toronto company Barrick have produced more gold.
Mr. Dushnisky will encounter some of the same challenges that he faced when Barrick joined AngloGold.The course of action of the company, like Barrick's , is trading substantially below the levels it has traded in 2011, at the peak of the last big bull market for gold.And Anglogold, like Barrick, has seen its gold reserves fall from significantly over the past five years.
Dushnisky officially resumes as CEO on September 1, replacing Sri Nivasan Venkatakrishnan, who leaves AngloGold for Vedanta Resources in London
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With the imminent departure of Mr. Dushnisky, attention is now turning to who will replace him and if Barrick will appeal to an internal candidate
When asked in an interview 12 days ago, if she became interested in the role of president, if she became available, Catherine Raw, Barrick's chief financial officer replied that the question was not relevant because she had "no expectation of seeing Kelvin resign".
However, she added that she "learned a lot" from working alongside Mr. Dushnisky
"It's fascinating. for me, especially from the point of view of relations with the government, how do you manage these complex situations.
Barrick reports second quarter financial results on Wednesday after closing. Analysts will be looking for any progress that the company might have made in its negotiations with the Tanzanian government. Barrick's subsidiary, Acacia Mining PLC, has been banned from exporting gold concentrates since March of last year. Tanzania has accused Acacia of defrauding $ 200 billion in taxes. Barrick is negotiating with Tanzania on behalf of the Acacia management.
Tags AngloGold Ashanti Barrick Dushnisky gold Kelvin leaves
