Barrick Gold Replaces CEO – New Focus on Share Price
Barrick Gold (ABX) – the world’s largest gold producer – has decided to replace CEO. Gold prices have been rising steadily over the past few years, however Barrick Gold’s share price has not kept pace, so it is no surprise to see the ousting.
Aaron Regent has been replaced by current CFO Jamie Sokalsky.
Barrick shares have gone up 3.9% since Jan 2009 while the gold ETFs have gone up 18.8% in the same time.
A major reason why the share price has been so poor was due to the takeover of Equinox Minerals for $7 billion. Equinox was primarily a copper producer, unfamiliar territory for Barrick Gold and resulted in losses as copper prices fell and operating costs rose.
Shareholders were also upset over low dividends as gold producers worldwide experienced record profits as gold prices shot up.
The board of directors issued a statement of confidence in the new CEO, and on a renewed focus on adding value to the shareholders.
