Gold Fields CEO Chris Griffith has taken the blame for the failed deal to buy Yamana Gold, a rival in Canada, and will step down at the end of December.
“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,” he said in a statement issued by the gold miner on Tuesday.
“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,” he said.
Yamana Gold accepted a rival offer from Agnico Eagle and Pan American in November after they tabled a joint bid at about $4.8bn. If the bid from Gold Fields, already one of the largest gold miners in the world, had succeeded, it would have made it the fourth largest in terms of gold production, behind Newmont, Barrick and Agnico Eagle.
Company chair Yunus Suleman told journalists on Tuesday that new leadership will work closely with Griffith over the next weeks to ensure a smooth handover. “We thank Chris for the commitment and dedication he showed as CEO of Gold Fields, especially during the Yamana transaction,” he said.
Griffith approached the board in November to say that he felt responsible for the outcome of the Yamana deal and that he would like to depart, he said.
According to Suleman there was no move from the board to push Griffith out, but “a mutual understanding”.
There was also no difference of opinion between Griffith and the board on Gold Fields’ growth strategy, including agreeing unanimously not to “enter into a bidding war” with its competitors in the Yamana deal.
“We were all disappointed that the Yamana deal did not go through, as we felt it was a compelling deal which would have created a strong company and created value for all our shareholders.
“We all [as the board] take responsibility for where the [Yamana deal] landed, but in this case we need to respect the decision of the CEO to take personal responsibility,” he said.
Martin Preece, executive vice-president for SA, will become the interim CEO. He joined the gold miner six years ago and has worked in the industry for nearly four decades.
Preece said the company did not expect Griffith’s departure to result in any disruptions in operations. “It is business as usual, our strategy remains intact and we will continue to drive that in a very focused way,” he said.
For now, the growth strategy will focus on ramping up production at its SA-based South Deep mine and on delivering the first gold from its new Salares Norte mine in Chile by the end of the second quarter of 2023.
The board has initiated the process of appointing a new CEO, but this could take some time. Based on previous experience the process could take up to 12 months, said Suleman.
Preece would not comment on whether he was interested in a seeking a permanent appointment as CEO.
“I think today’s day one priority is to get the feet under the table and I’ll take some guidance from the board on that.”
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