Business Maverick: Chris Griffith falls on his sword, quits as Gold Fields’ CEO over failed Yamana transaction

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Chris Griffith is taking the fall for the company’s failure to execute its proposed all-share, $6.7-billion acquisition of Canadian mining company Yamana Gold. The company said on Tuesday that Griffith had taken responsibility for the failure and ...

Unlike in ANC circles, some South African corporate executives actually hold themselves accountable for their actions and strategies. And so Griffith, a highly rated mining executive who has also been at the helm as CEO of Anglo American’s South African iron ore and platinum units, decided to step down as Gold Fields’ CEO after the unraveling of the Yamana deal.

“The Board and I agree that the company’s strategy, including growing the value and quality of the portfolio, continues to be the right one, but we also felt that the Yamana setback should not be allowed to impede the company’s strategy. So, as CEO I felt that I should take responsibility and allow the company to move forward under new leadership unencumbered by the Yamana transaction,” Griffith said in a statement.

Martin Preece, who runs Gold Fields’ South African operations — effectively its last productive asset here, the South Deep mine in western Gauteng — will take over from the New Year as interim CEO while the board searches for Griffiths’ replacement. On a conference call with journalists, Gold Fields Chairperson Yunus Suleman said that could take up to nine to 12 months. In response to questions, he also said there was no falling out between the board and Griffith and that he had approached the board last month to depart over Yamana.

The proposed Yamana deal looked good on paper and was in line with Gold Fields’ strategy to lift its production profile, which is now global, with fresh new assets. But it was greeted with scepticism by major shareholders, underlining the point that current valuations have perhaps made 2022 not the best year to pursue major mining deals.

 

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JUST IN | Chris Griffith resigns as Gold Fields CEO after failed Yamana deal | BusinessGold Fields CEO Chris Griffith has resigned in the wake of the mining company’s failed bid to acquire Canadian precious metals miner Yamana Gold. | News24_Business _Business The insatiable appetite of Gold Fields to grow through acquisitions has over the years failed & claimed many CEO’s. The Cerro Corona, IAMGold failed deals have not taught GF anything. A different growth strategy must be persued. Otherwise, good CEO’s will fall on their swords.1/2 _Business Good call.
Source: News24 - 🏆 4. / 80 Read more »