PERTH (miningweekly.com) - The share prices of base metals miner Kagara dropped by nearly 40% on Wednesday as the company’s restructuring process claimed its first casualty.
Nonexecutive chairperson Kim Robinson was expected to step down immediately, but would retain his position on the board as a nonexecutive director.
Robinson, who is the founding chairperson of Kagara, has been with the company since 1999 and has agreed to step down to expedite the process of renewing the composition and structure of the board.
John Linley has been appointed interim chairperson until a permanent successor has been appointed.
Meanwhile, the company’s core executive team would be reduced to MD Geoff Day, CFO Paul Warme, COO Evan Spencer and executive GM Mark Hands.
Joe Treacy would remain on the board and continue in the role of executive GM for minerals and business development, but would move to a part-time status until the current restructuring of the company was completed.
Earlier this week, Kagara announced a series of initiatives, in addition to those outlined as part of its five-year growth strategy, designed to streamline activities towards the most profitable elements of the business.
These initiatives include refocusing the company’s operations around zinc and copper production from the Balcooma underground operation and the Baal Gammon openpit operation in the central Mount Garnet region, suspending the development of the West 45 underground mine, and placing the mine on care and maintenance until zinc prices improved. It would also move the Thalanga processing operation onto care and maintenance at the end of March and suspend exploration activities in North Queensland, until market conditions improved.
Kagara shares were trading at around A$0.18 a share, from a high of A$0.22 a share.