Johannesburg - Harmony Gold tumbled yesterday after saying its chief executive, Graham Briggs, would be stepping down.
The news caused the company’s stock to fall by as much as 8.16 percent before closing 6.1 percent lower at R13.70 on the JSE yesterday.
Briggs, 62, will retire more than seven years after he took over from Bernard Swanepoel as the chief executive of the gold mining company.
When Briggs took over in January 2008, Harmony’s share price was R70.46. By the close yesterday, the stock’s value had fallen by 81 percent.
Under Briggs’ watch, shafts have been shut and marginal gold mines have been sold. For example, Evander Mines was sold to junior mining company Pan African Resources for R1.7 billion.
Yesterday the gold price was fixed at $1 144.40 (R14 154.40) an ounce up 37 percent from $833.70 in January 2008 when Briggs was appointed the Harmony boss.
Long career
“Graham has had a long and distinguished career in the South African mining industry, including 20 years of service with Harmony,” the company said in a statement yesterday.
“Graham has agreed to remain in the role of chief executive until a suitable candidate has been appointed and to ensure a smooth handover. When the new chief executive has been appointed, a further announcement will be made,” the company said.
Briggs is the vice-president of the Chamber of Mines and he previously served as the managing director of Harmony Australasia between 2005 and 2007 before becoming the chief executive.
Harmony chairman Patrice Motsepe said: “It has been a privilege to work with Graham and we wish to thank him for the valuable contribution he has made to Harmony and the mining industry.
“The global mining industry is currently experiencing challenging times and we are committed to ensuring that Harmony continues to be a globally competitive company.”
In 2012, Briggs was credited with locking out 5 400 mineworkers, who had embarked on a wildcat strike at Harmony’s Kusasalethu mine outside Carletonville.
The lock out came amid labour unrest that had spread to the gold sector from the platinum belt following the killing of 44 people in violent clashes at Lonmin’s Marikana mine in mid-August 2012.
Last year the company wrote off the value of its Phakisa mine in the Free State by R1.4bn.
“Mining executives like that don’t grow on trees,” Stephen Meintjes, a senior analyst at Imara SP Reid, said yesterday.
According to its website, Harmony operates nine underground mines, one open-pit operation and several surface sources in South Africa and a 50 percent joint venture in Papua New Guinea with Newcrest Mining.
On Wednesday, Harmony struck a deal with unions to trim job cuts at its loss-making Doornkop mine. In terms of the deal 3 100 of the 3 500 jobs will be saved after the firm agreed to a new operational plan. The National Union of Mineworkers welcomed the deal.
Business Report