Gold Fields CEO Griffith leaves after failed Yamana takeover
Gold Fields (JSE, NYSE: GFI) chief executive officer Chris Griffith is , only a month after the company鈥檚 failed attempt to take over Canada鈥檚 Yamana Gold (TSX: YR)(NYSE: AUY).
Griffith, 57, was appointed CEO of the South African gold miner in April 2021, taking over from Nick Holland, who retired after 13 years. Griffith had previously held the top job at Anglo American Platinum and Kumba Iron Ore.
Under his direction, Gold Fields kicked off plans to expand into North America, beginning with the attempted acquisition of Yamana. Two Canadian miners, Agnico Eagle Mines and Pan American Silver, teamed up in late October and put higher bid on the table, finally trumping Gold Fields鈥.
Martin Preece, 54, who runs the company鈥檚 South Deep gold mine in South Africa, will take on the role of interim CEO, while the board searches for a new boss.
鈥淭he Yamana setback should not be allowed to impede the company鈥檚 strategy,鈥 Griffith said in an emailed statement. 鈥淎s a CEO I felt that I should take responsibility and allow the company to move forward under new leadership unencumbered by the Yamana transaction.鈥
“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,鈥 chair Yunus Suleman noted.
Shares in Gold Fields, which operates nine mines across Australia, Peru, South Africa and West Africa, dropped a fifth on the day the bid was announced in May but bounced back by a similar percentage in November, when the deal was called off.
The Yamaha takeover would have created the world鈥檚 fourth-largest gold miner, surpassing Agnico Eagle.
Gold Fields currently has only one mine left in the home country 鈥 South Deep. Its portfolio includes three operations in Ghana, the Cerro Corona mine in Peru, and the Salares Norte project in Chile.
In defending the Yamana deal, Griffith had said that Gold Fields鈥 gold output was in decline and that the addition of fresh assets to lift production was crucial.
The Johannesburg-based miner has guided 2.3 million ounces of gold production for this year, increasing to 2.8 million in 2024. After that, output could fall to a low of 2.1 million per year by 2030 without a deal that enhances the company鈥檚 portfolio.
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