Detour Gold founder and CEO resigns as miner faces ‘close to-time period …

In a shock transfer, Detour Gold Corp. introduced Monday that its founder and chief government Gerald Panneton has resigned.

The Toronto-primarily based miner didn’t present any reason behind the departure, however did well known that it’s going through “close to-time period challenges.”

The inventory plunged as a lot as 33% on Monday as surprised buyers absorbed the information.

Detour began industrial manufacturing on the large Detour Lake gold mine in Ontario in August. On the other hand, the corporate’s shares have fallen greater than eighty% this yr because it has confronted liquidity issues amid shedding gold costs.

“Administration has fallen quick with admire to managing its steadiness sheet within the face of a impulsively declining gold worth,” TD Securities analyst Daniel Earle wrote in a word. He believes the resignation is as a result of the the “vital decline” within the firm’s share value reasonably than any disagreement about technique on the board stage.

Chief monetary officer Paul Martin has been named the intervening time CEO whereas the corporate searches for a everlasting alternative for Mr. Panneton.

“The Firm’s precedence continues to be on optimizing the operation of the Detour Lake gold mine to succeed in nameplate capability,” Mr. Martin stated. “Our close to-time period targets are smartly outlined and embody finalizing the 2014 price range after now we have had the good thing about seeing the implications of the rest of 2013.”

Within the intervening time, liquidity continues to be a priority. Mr. Earle expects Detour to burn money for the subsequent two quarters, and stated that the corporate is a “roughly breakeven” gold producer this 12 months at a gold value of US$1,300 an oz. Gold is beneath that stage at the moment.

Detour ended the 1/3 quarter with US$156-million of money and brief-time period investments.

Mr. Panneton, a veteran geologist with greater than 30 years of expertise, based Detour in 2006 and performed a key function in bringing its Ontario challenge into manufacturing. Previous to beginning Detour, he used to be a senior government at Barrick Gold Corp.

Desjardins Securities analyst Michael Parkin cited that the corporate remains to be tasked with ramping up the Detour Lake mine to full capability, and a transformation within the administration construction right through this era is “doubtlessly complicated.” He’s happy that chief running officer Pierre Beaudoin is closing in his function.

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