Newmont's Goldberg to Succeed O'Brien as CEO

Newmont Mining Corporation, the world's second-largest gold producer has announced that its Chief Executive Richard O'Brien will step down by March 1, 2013 and will be succeeded by the company’s President and Chief Operating Officer Gary Goldberg. 
 

Mr. Goldberg joined the world's second-largest gold-mining company by production in December 2011 as executive vice president and chief operating officer.

 Mr. Goldberg, 53, spent 30 years at Rio Tinto in the company's gold, copper, coal and industrial-minerals businesses. He was promoted to president in July. 

In addition to his positions at Rio Tinto, Mr. Goldberg served as Chairman of the National Mining Association in the U.S. from 2008 to 2010 and formed and led its CEO Safety Task Force.

While serving as President and CEO of Borax, the company was twice named America's safest large mining operation by the federal Mine Safety & Health Administration and Borax was the first mining company to receive the California Governor's Environmental and Economic Leadership Award.

While serving as Managing Director of Coal & Allied Industries Limited, he was appointed to the Australian Government's Business Roundtable on Sustainable Development.

He holds a Bachelor of Science degree in Mining Engineering from the University of Wisconsin-Platteville and a Masters degree in Business Administration from the University of Utah.

Newmont's move is the latest in a string of executive reshufflings this year amid investor disappointment that gold-mining shares have lagged the gains in gold prices.

Barrick Gold Corporation, the largest gold-mining company by production, ousted its chief executive in June and pledged a renewed focus on shareholder returns.
Major gold miner Kinross Gold fired its chief executive in August.

Project delays, rising labour, fuel and equipment costs have cut into the miners’ profits. Newmont last month reported its third-quarter earnings fell 26% as revenue slipped on lower copper and gold output and higher costs.

Newmont shares are down 22% this year, compared with an 11% decline in the Dow Jones Precious Metals Index and a 9% gain in gold futures.

Mr. O'Brien, 58, joined Newmont in 2005 as chief financial officer and was named CEO and president in July 2007.

Early in Mr. O'Brien's tenure as CEO, Newmont paid $1.5 billion to buy Miramar Mining Corp., including Miramar's Hope Bay project in northern Canada.

Newmont this year took a $1.6 billion write-down on the project, saying it would focus on more advanced projects elsewhere.

Mr. O'Brien also oversaw Newmont's $2.3 billion purchase of Fronteer Gold Inc. last year, which added to its holdings in Nevada.

"This is somewhat of a surprise," said Chris Mancini, an analyst with the Gabelli Gold Fund, which holds Newmont shares.

“My interpretation would be that the board is disappointed that the price of gold has gone up and the stock price hasn't. I would think that they're looking for a change just like a lot of mining companies.”

“A Newmont spokesman said the board's succession planning "has been going on for some time now.”

“Richard has built a solid operational foundation, a talented team and a strong balance sheet, all of which position Newmont well for the next stage of its growth and development,” Chairman Vincent A. Calarco said in a statement.

The company operates mines in the U.S., Australia, Peru, Indonesia and Ghana.